Alan Milburn has revealed he will not serve in a third term Labour Cabinet.

The chancellor of the Duchy of Lancaster - and Labour's election co-ordinator - made the announcement on election night after enduring a torrid campaign.

A key ally of Tony Blair, he was brought back into the government last year having previously resigned in 2003 to spend more time with his family.

The former health secretary was sidelined during the campaign by the re-emergence of the chancellor.

However, he insisted that the election job was only temporary and that he would now go back to concentrating on his children and Darlington constituents.

"I've never really changed my mind during the course of the last few months, and have decided I want to see my kids grow up," he told Sky News.

When appointed to the helm of the Labour campaign, the move was seen as a snub to Brown, and Milburn was talked of as a future chancellor under Blair and potential prime minister.

However, he attracted criticism for a failing to counter the Conservatives' aggressive pre-election campaign, with several Labour MPs demanding Brown be brought back.

His decision will be seen as further evidence that Blair's influence is waning, as the party begins to look to a new leadership under Brown.