News Update:

Alistair Darling becomes transport secretary

Andrew Smith becomes work and pensions secretary

Paul Boateng becomes chief secretary to the Treasury

Stephen Byers yesterday quit the government after months of speculation about his future.

At a dramatic Downing Street press conference, the cabinet minister announced he was resigning as transport secretary.

His decision was widely seen as an attempt to pre-empt his inevitable sacking in a summer reshuffle.

Number 10 insists the minister made his own decision to go - although Tony Blair did not attempt to persuade him to stay.

Byers admitted that he had "made mistakes" but insisted he was not a liar.

"People who know me best know I am not a liar," he told journalists.

But he recognised that "there are things I should have done differently."

Byers said he "had become a distraction from what the government is achieving".

The minister conceded to friends that no-one believed him any more.