by Paul Francis

pfrancis@thekmgroup.co.uk

A Labour MP has shrugged off suggestions that the resignation of his former ministerial boss is set to trigger a damaging and divisive leadership contest.

Gordon Brown was dealt a potentially devastating blow to his leadership last night with the shock resignation of the works and pensions minister James Purnell. There is already speculation that his decision to quit will be followed by other resignations.

Mr Purnell announced he was quitting in a move that will heap even more pressure on the beleagured Prime Minister, who is braced for a dismal showing in the council and European elections. The results of the county council election will be declared today and Labour is expected to suffer widespread losses.

But Jonathan Shaw, Chatham and Aylesford MP and a junior minister who served under James Purnell in the Department for Work and Pensions, said people would be exasperated by any contest and said he disagreed with claims that Labour would fare better if Mr Brown stood aside.

Mr Shaw said: "I do not think his analysis is correct. It [a leadership contest] would be a wonderful spectacle for the media but with everthing that has been going on with allowances and the economy I think people would be extremely exasperated.

"Neither the Government or the country is going to be served by a very introspective argument inside the party. James has made his decision and we now need to focus on what matters and that is the economy. What people are concerned about is their jobs. What is going to matter to people more? A leadership contest or a new effort to boost the economy?"

In his resignation letter, Mr Purnell wrote that he owed it to the Labour Party to "say what I believe no matter how hard that may be".

He wrote: "I now believe your continued leadership makes a Conservative victory more, not less likely. That would be disastrous for our country."

He added: "I am therefore calling on you to stand aside to give our party a fighting chance of winning. As such I am resigning from government."