Jacqui Smith expected to go in Cabinet reshuffle
Mr Brown is expected to announce changes to his team following Thursday’s local and European elections, in an attempt to minimise the damage.
Announcements could be made as soon as Friday, while council results are being announced and before the European results are published on Sunday.
Labour appears set for a disastrous result which will re-open speculation about a leadership challenge to Mr Brown.
One opinion survey by ICM put the party in third place with 22 per cent of the vote, behind the Liberal Democrats on 25 per cent and well behind David Cameron’s Conservatives on 40 per cent.
Sacking Ms Smith would leave Birmingham MP Liam Byrne (Lab Hodge Hill) as the most senior MP in the region.
The former Minister for the West Midlands, would be an obvious candidate for the local government job if Ms Blears is moved.
Black Country MP Tom Watson (Lab West Bromwich East), a Cabinet Office Minister, is set to leave the Government, but will continue to advise the Prime Minister and help organise campaigns.
MP Pat McFadden (Lab Wolverhampton South East) could be moved sideways from the Department for Business, Enterprise and Regulatory Reform, particularly if Lord Mandelson, the Secretary of State whom he is close to, is moved to a different department.
Mr McFadden is highly regarded by Downing Street but Mr Brown is said to believe a change of leadership in the Business Department could make it easier to strike a deal with Labour rebels opposed to plans for Royal Mail reform.
Local MPs who could enter the Government include David Wright (Lab Telford), an ally of Tom Watson. Sion Simon (Lab Erdington), the minister for further education, is likely to remain in the Government.