British home secretary Jacqui Smith plans to resign, a source close to her said today, making the highest profile casualty of an expenses scandal that has swept through parliament and which may yet claim more big names.
Britons are furious that many MPs have milked the allowances system, claiming from taxpayers the cost of everything from duck houses to cleaning a moat at a time when many voters are struggling in a recession.
Ms Smith's reputation suffered in March when a leaked copy of her parliamentary expenses claims showed she had charged taxpayers for her husband's rental of two pornographic movies.
"She spoke to the prime minister at Easter and said she felt it was the right time to go at the next reshuffle," the source told Reuters.
British prime minister Gordon Brown faces a rout in European and local elections on Thursday and is expected to reshuffle his team afterwards, making changes ahead of an election due within a year, which the opposition Conservatives are expected to win by a landslide.
There has been speculation this week that Chancellor Alistair Darling, who has faced criticism for his own expenses claims, could be moved from the Treasury.
Some commentators say a poor poll showing by Labour could lead to another effort to unseat Mr Brown. Health Secretary Alan Johnson, a more media-savvy figure than the dour Brown, is tipped as a potential replacement.
Support for Mr Brown's Labour Party has plunged and voters angry about the expenses scandal are rapidly losing faith in politicians, opinion polls show.
"It's nothing to do with Gordon," the source close to Ms Smith said. "She feels he is the right man to take us forward to the next election."
All the main parties have been hit by a series of disclosures about their expenses published in the
Daily Telegraphover three-and-a-half weeks with several MPs saying they will not stand at the next election as a result.
Labour, in power since 1997, appears likely to suffer most in the polls having presided over a now-discredited system.
Transport secretary Geoff Hoon became the latest senior politician to agree to pay back money after being accused of claiming allowances on two homes at the same time. He said he would repay £384.
Mr Darling apologised yesterday and said he would repay £350 after overclaiming expenses.
Reuters