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Key Blair ally Blunkett resigns
YOUR E-MAIL ALERTSLONDON, England (CNN) -- Britain's Work and Pensions Secretary David Blunkett has resigned amid controversy over his business dealings. The 58-year-old minister had been criticized for taking a directorship at a DNA firm without clearing the step with government and parliamentary watchdogs. Blunkett, speaking to reporters on Wednesday, said: "I step down today precisely to protect the government from diversion from the policies we are carrying out. "I don't think you need to be a genius to realize that the events not just of the last few days but of the last few weeks have been a diversion." He said he defended a free press but dismissed some claims about him as "lies" and urged the media to leave his family and friends alone. "David Blunkett said he ... believed his position to be untenable," Blair's spokesman told reporters earlier in the day. It is Blunkett's second resignation. The minister stepped down as Home Secretary in December 2004 over claims his office had fast-tracked a visa application for his lover's former nanny. (Full story) But Prime Minister Tony Blair brought his close ally back into the government after the general election in May this year. The prime minister told the Commons that Blunkett, who is blind, is "a decent and honourable man" who had contributed a great deal to his country, who had overcome daunting personal challenges and could be proud of his record in British public life. John Hutton will replace Blunkett in the Work and Pensions post. Hutton was already a member of the Cabinet as Chancellor of the Duchy of Lancaster. His successor will not be announced this week, Blair's official spokesman said. Analysts say the latest resignation is an embarrassment for Blair just months after he brought his ally back into government. A director of the firm at the center of the Blunkett row has also quit, it was announced on Wednesday. DNA Bioscience said Lucy Siddiqi was standing down because of the pressure on her and her family under the "intense" media attention. In a statement, the company said: "Lucy Siddiqi has resigned as a director of the company due to the considerable pressure brought upon Lucy and her family under the current intense media attention." 
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