Alan Johnson resigns as shadow chancellor

Ed Balls named as shadow chancellor as Johnson stands down “for personal reasons”.

Alan Johnson has just announced his resignation as shadow chancellor "for personal reasons". After a strong start to 2011, Ed Miliband now faces the biggest crisis of his leadership. Ed Balls has been named as Johnson's replacement, with Yvette Cooper taking over from her husband as shadow home secretary. Douglas Alexander will replace Cooper as shadow foreign secretary.

Below is the full text of Johnson's statement:

I have decided to resign from the shadow cabinet for personal reasons to do with my family. I have found it difficult to cope with these personal issues in my private life whilst carrying out an important front-bench role.

I am grateful to Ed Miliband for giving me the opportunity to serve as shadow chancellor of the exchequer. He is proving to be a formidable leader of the Labour Party and has shown me nothing but support and kindness.

My time in parliament will now be dedicated to serving my constituents and supporting the Labour Party. I will make no further comment about this matter.

After Johnson's recent political troubles, his decision to stand down comes as no surprise. His public disagreements with Ed Miliband over the 50p tax rate and the graduate tax damaged his cause from the start. Then, in quick succession, he failed to name the employers' rate of National Insurance, mistakenly suggested that VAT applied to food and appeared unsure of his own party's deficit reduction plan.

He was swiftly identified by the Tories as the weak link in Labour's armoury and was ridiculed by David Cameron at PMQs (Johnson was a notable absence this week). The man who was once spoken of as a future Labour leader became the laughing stock of Westminster.

Yet everything we're hearing suggests the decision was taken for purely personal reasons. There is nothing to suggest he was pushed out by Ed Miliband, who attempted to persuade him to stay. We can expect the Tories to focus on the appointment of Balls, the true "son of Brown", rather than the departure of Johnson.

Below is the new shadow cabinet.

Leader of the Opposition
Rt Hon Ed Miliband MP

Deputy Leader of the Labour Party, Shadow Deputy Prime Minister and Shadow Secretary of State for International Development
Rt Hon Harriet Harman MP

Shadow Chancellor of the Exchequer
Rt Hon Ed Balls MP

Shadow Secretary of State for Foreign and Commonwealth Affairs
Rt Hon Douglas Alexander MP

Shadow Secretary of State for the Home Department and Shadow Minister for Women and Equalities
Rt Hon Yvette Cooper MP

Chief Whip
Rt Hon Rosie Winterton MP

Shadow Secretary of State for Education and Election Co-ordinator
Rt Hon Andy Burnham MP

Shadow Lord Chancellor, Secretary of State for Justice (with responsibility for political and constitutional reform)
Rt Hon Sadiq Khan MP

Shadow Secretary of State for Work and Pensions (with responsibility for the policy review)
Rt Hon Liam Byrne MP

Shadow Secretary of State for Business, Innovation and Skills
Rt Hon John Denham MP

Shadow Secretary of State for Health
Rt Hon John Healey MP

Shadow Secretary of State for Communities and Local Government
Rt Hon Caroline Flint MP

Shadow Secretary of State for Defence
Rt Hon Jim Murphy MP

Shadow Chief Secretary to the Treasury
Angela Eagle MP

Shadow Secretary of State for Energy and Climate Change
Meg Hillier MP

Shadow Leader of the House of Commons
Rt Hon Hilary Benn MP

Shadow Secretary of State for Transport
Maria Eagle MP

Shadow Secretary of State for Environment, Food and Rural Affairs
Mary Creagh MP

Shadow Secretary of State for Northern Ireland
Rt Hon Shaun Woodward MP

Shadow Secretary of State for Scotland
Ann McKechin MP

Shadow Secretary of State for Wales
Rt Hon Peter Hain MP

Shadow Secretary of State for Culture, Media and Sport
Ivan Lewis MP

Shadow Leader of the House of Lords
Rt Hon Baroness Royall of Blaisdon

Shadow Minister for the Cabinet Office and the Olympics
Rt Hon Tessa Jowell MP

Lords Chief Whip
Rt Hon Lord Bassam of Brighton

Shadow Attorney General
Rt Hon Baroness Scotland of Ashtal QC

George Eaton is political editor of the New Statesman.

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Recess confidential: Labour's liquid party

Sniffing out the best stories from Westminster, including Showsec, soames, and Smith-side splits.

If you are celebrating in a brewery, don’t ask Labour to provide the drinks. Because of the party’s continuing failure to secure a security contractor for its Liverpool conference, it is still uncertain whether the gathering will take place at all. Since boycotting G4S, the usual supplier, over its links with Israeli prisons, Labour has struggled to find an alternative. Of the five firms approached, only one – Showsec – offered its services. But the company’s non-union-recognition policy is inhibiting an agreement. The GMB, the firm’s antagonist, has threatened to picket the conference if Showsec is awarded the contract. In lieu of a breakthrough, sources suggest two alternatives: the police (at a cost of £59.65 per constable per hour), or the suspension of the G4S boycott. “We’ll soon find out which the Corbynites dislike the least,” an MP jested. Another feared that the Tories’ attack lines will write themselves: “How can Labour be trusted with national security if it can’t organise its own?”

Farewell, then, to Respect. The left-wing party founded in 2004 and joined by George Galloway after his expulsion from Labour has officially deregistered itself.

“We support Corbyn’s Labour Party,” the former MP explained, urging his 522,000 Facebook followers to sign up. “The Labour Party does not belong to one man,” replied Jess Phillips MP, who also pointed out in the same tweet that Respect had “massively failed”. Galloway, who won 1.4 per cent of the vote in this year’s London mayoral election, insists that he is not seeking to return to Labour. But he would surely be welcomed by Jeremy Corbyn’s director of communications, Seumas Milne, whom he once described as his “closest friend”. “We have spoken almost daily for 30 years,” Galloway boasted.

After Young Labour’s national committee voted to endorse Corbyn, its members were aggrieved to learn that they would not be permitted to promote his candidacy unless Owen Smith was given equal treatment. The leader’s supporters curse more “dirty tricks” from the Smith-sympathetic party machine.

Word reaches your mole of a Smith-side split between the ex-shadow cabinet ministers Lisa Nandy and Lucy Powell. The former is said to be encouraging the challenger’s left-wing platform, while the latter believes that he should make a more centrist pitch. If, as expected, Smith is beaten by Corbyn, it’s not only the divisions between the leader and his opponents that will be worth watching.

Nicholas Soames, the Tory grandee, has been slimming down – so much so, that he was congratulated by Tom Watson, Labour’s deputy leader, on his weight loss. “Soon I’ll be able to give you my old suits!” Soames told the similarly rotund Watson. 

Kevin Maguire is away

I'm a mole, innit.

This article first appeared in the 25 August 2016 issue of the New Statesman, Cameron: the legacy of a loser