Blair: Reshuffle imminent

The prime minister has apparently begun his Cabinet reshuffle - with rising star Alan Johnson set for a move up the political ladder.

Johnson was tipped for promotion, possibly becoming work and pensions secretary.

He left Downing Street grinning to the waiting media after days of speculation about the top post.

The reshuffle, which is expected to continue into Thursday, follows the resignation of Andrew Smith from that post.

Tony Blair is also expected to make changes at lower ranks.

Downing Street said the prime minister will carry out the cabinet changes in "his own time''. 

Number 10 has dismissed the idea that Gordon Brown had blocked a return to government for Alan Milburn and insisted that the premier and the Chancellor worked closely together.

Blair said that he would complete his ministerial changes by the end of the week.

The prime minister's spokesman said: "I don't think there has ever been a reshuffle where there hasn't been speculation beforehand.

"The important thing is the prime minister takes the time to carry out the reshuffle in his own time. That he will do. The speculation is just something you have to take.''

Former Labour leader Neil Kinnock added his concerns about the return of Alan Milburn to the cabinet, thought to be major source of disagreement between Blair and Brown.

Kinnock said of Milburn: "I think that he has really got to consider, if he didn't want to give the commitment - and I completely understand the reasons of a man with a young family - last year, then he has really got to think hard and deep about the nature of the commitment he would have to show at
least over the next year to the election and beyond."

Smith resignation

The revamp comes amid growing speculation of an escalation in the feud between the prime minister and the chancellor.

Blair could use the reshuffle to parachute key Blairites into fiefdoms where Gordon Brown's writ runs.

Following the resignation of Andrew Smith, senior Labour sources have hit out at Downing Street following a briefing campaign against at least one minister.

But the resignation of work and pensions secretary Smith has already led to bloodletting within Labour ranks.

Smith quit on Monday after a series of media reports suggested he was set to be removed from his department.

Blair denied he had been at odds with the minister. He told reporters that "there was no disagreement on policy at all between us".

The prime minister went on to say that Smith's resignation should not be seen through the prism of Blair versus Brown.

"From time to time people step down from government," he said.

"From time to time people will decide, particularly if they have been many years in government, that they don't want to be in government. That is fine."

He denied that the chancellor has an effective veto over who is appointed to the government. 

But the prime minister is facing accusations that he has once again moved to damage the standing of the chancellor and his supporters.