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Expenses row claims biggest scalp

Michael Martin has become the first Commons Speaker forced out of office for more than 300 years, as the expenses scandal claimed its biggest scalp yet.

In a brief but dramatic statement, Mr Martin announced he would be standing down next month to preserve "unity" after a near-mutiny by MPs from all parties.

The move was part of a co-ordinated bid to take the heat out of the controversy which has engulfed Westminster over the past fortnight.

Shortly afterwards, Gordon Brown pledged to end the parliamentary "gentlemen's club" by bringing in external regulators to oversee pay and allowances. There will also be a £1,250-a-month cap on mortgage interest claims for second homes, a ban on buying furniture, and every single claim will be published online quarterly.

The Prime Minister also insisted no-one who had broken the rules would be permitted to stand as a Labour parliamentary candidate - and raised fresh doubts over the future of Communities Secretary Hazel Blears by branding her avoidance of £13,000 in capital gains tax "totally unacceptable".

But he dismissed calls for an immediate General Election so voters could punish wrongdoers, insisting it would not help because all parties had been tainted.

Mr Martin stood up in the House at 2.30pm to deliver a resignation statement which lasted little more than 30 seconds.

"Since I came to this House 30 years ago, I have always felt that the House is at its best when it is united," he said. "In order that unity can be maintained, I have decided that I will relinquish the office of Speaker on Sunday June 21. This will allow the House to proceed to elect a new Speaker on Monday June 22. That is all I have to say on this matter."

A by-election is expected to be held in Mr Martin's Glasgow North East constituency next month, and Labour will be braced for a tough fight to hold the traditionally safe seat.

By custom, Mr Martin would then be given a peerage but his spokeswoman could not confirm whether he would move to the House of Lords.

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