Caroline Flint launches 'stiletto in the heart' of Gordon Brown

After being snubbed for a promotion, Caroline Flint, the Europe Minister, delivered the most personal attack yet on the beleaguered Prime Minister, accusing him of using her as "female window dressing" and of operating a "two-tier Government".

In a move designed to maximise the damage to Mr Brown, she announced she was quitting his Government just as he faced the cameras to insist he would not walk away from Downing Street following Labour's worst performance at the polls in 30 years.

Less than 24 hours earlier, she had taken to the airwaves to support his leadership in the wake of the shock resignation of James Purnell, the Work and Pensions Secretary, and his demand that the Prime Minister go for the good of the party.

But her departure was just one of a series of ministerial walk-outs which undermined Mr Brown's hurried attempt to reshape his Government and relaunch his premiership.

Geoff Hoon, John Hutton, Paul Murphy, Margaret Beckett and Tony McNulty have all quit the Government.

They followed Jacqui Smith, Hazel Blears, Mr Purnell and Beverley Hughes out of the exit door.

Mr Brown was forced to retreat from his plan to sack Alistair Darling, the Chancellor, instead keeping him and Foreign Secretary David Miliband in their posts, promoting leadership rival Alan Johnson to the Home Office and effectively making Peter Mandelson deputy Prime Minister.

Miss Flint's resignation came after a stormy meeting at Downing Street.

She issued a savage resignation letter personally attacking Mr Brown's style of Government and the overwhelming pre-eminence of men.

"You have a two-tier Government, your inner circle and then the remainder of Cabinet," she said.

"Several of the women attending Cabinet – myself included – have been treated by you as little more than female window dressing."

Hazel Blears' resignation 'due to capital gains tax avoidance on another property'

Hazel Blears: Communities secretary has stood down from the Cabinet

The property allegedly involved had previously been declared as her second home for the purpose of claiming parliamentary expenses.

It is understood that the Communities Secretary was concerned that it might be disclosed that there was another property deal from which she gained.

The Telegraph has learned that the £13,000 that Miss Blears repaid voluntarily last month, in the wake of expenses disclosures about the sale of her Kennington flat, was not allegedly to cover just one property.

It is understood that a Cabinet Office compliance unit looking at ministers’ arrangements has uncovered another property sale in which Miss Blears declared the property as her primary residence for tax purposes while at the same time telling the Commons authorities that it was her designated second home.

She was apparently concerned that the full details would soon emerge - possibly as early as today.

The Telegraph last month sparked the controversy surrounding Miss Blears when we disclosed that she sold a property in Kennington, south London, in August 2004 for £200,000, making a profit of £45,000. She had designated that property as her second home for parliamentary expenses purposes.

The “flipping” of properties involved is not against the law or the rules governing MPs’ expenses claims, but Gordon Brown called her behaviour “totally unacceptable.”

Miss Blears confirmed on May 12 that she did not pay capital gains tax (CGT) on the profit from the sale because "no liability" had arisen.

But in an effort to shore up her Cabinet position she went before television cameras and wrote a cheque for £13,000. She has consistently denied any wrongdoing.

It was presumed that the amount was for the Kennington flat, but that allegedly is not the case.

The disclosure that the £13,000 allegedly included “back tax” for another “flipped” property deal will lead many to suspect that she resigned today before the details were disclosed.

The resignation of Miss Blears has deepened the political crisis now engulfing Gordon Brown, the Prime Minister.

Dealing a fresh blow to Mr Brown’s fragile political authority in the wake of the MPs' expenses scandal, Miss Blears said in her resignation statement today that the Labour Party has lost its connection with the British people.

“I have told the Prime Minsiter I am resigning from the Government,” Miss Blears said. “I am returning to the grassroots. I want to help the Labour Party to reconnect with the British people.

"My politics has always been rooted in the belief that ordinary people are capable of extraordinary things.

"The role of a progressive Government should be to pass power to the people.

"I want to help the Labour Party to reconnect with the British people, to remind them that our values are their values, that their hopes and dreams are ours too."

Today's statement was notable for the absence of any expression of backing for the Prime Minister.

David Cameron, the Tory leader, taunted Mr Brown in the Commons today at prime minister's questions, saying his command over his Cabinet had "simply disappeared".

Mr Cameron accused the premier of being "in denial" in the wake of the resignation of Miss Blears and other ministerial departures.

Shadow work and pensions secretary Theresa May said the Government was no longer capable of governing and that a General Election was now essential.

"The Government has no answer. They are racked by infighting and they are unable to deal with the real issues that matter to people," she told the BBC News channel. "We need a General Election."

Liberal Democrat leader Nick Clegg said the Government was in its "death throes".

Gordon Brown “respects and understands” Hazel Blears’ decision to quit the Cabinet and believes she made “an outstanding contribution to public life”, said a Downing Street spokesman.

Miss Blears told Mr Brown of her decision to quit at a face-to-face meeting this morning.

The spokesman added: "She will be replaced very shortly."

Miss Blears' move followed confirmation that Jacqui Smith, the Home Secretary, will step down from the Cabinet at the reshuffle. Two other minsters, Tom Watson and Beverley Hughes, have also said they are quitting.

Miss Blears has been a public critic of the Prime Minister, and there is now intense speculation that she will attack him from the backbenches.