Kelly to quit government

By Sumeet Desai

MANCHESTER (Reuters) - Gordon Brown denied on Wednesday that more government resignations were in the pipeline as the departure of Transport Secretary Ruth Kelly renewed questions over his leadership.

Brown said Kelly had quit to spend more time with her four children and that he had known about her decision since May.

Still, the timing of the news was bad for the prime minister less than 24 hours after his well-received speech to the Labour Party's annual conference appeared to have bought him more time to save his 15-month premiership.

After 11 years in power, Labour is some 20 points behind in opinion polls and on course for a humiliating defeat to the Conservatives in the next election, due by mid-2010. Several MPs want Brown, 57, to make way for a new leader.

Brown defied his critics on Tuesday, saying the financial crisis meant this was no time for a "novice" -- a remark aimed at Conservative leader David Cameron and perhaps at potential Labour rival, Foreign Secretary David Miliband.

On Wednesday, Brown said there were no political differences between him and Kelly and the decision to go had been a purely personal one.

"I talked to Ruth in May about this. We are very good friends because we worked together in the Treasury for many years," Brown told Sky Television.

Kelly will stay on in her job for now. Brown is expected to reshuffle his ministerial team to reassert his authority over the party next week.