This is the second under Gordon Brown. In March 2006, an inquiry began into the sale of peerages in return for donations to the Labour Party. This scandal played a part in the fall of Tony Blair, who became the first British prime minister ever to be questioned under caution by the police.

When Gordon Brown came to office last year, he promised a sleaze-free administration. He was, he said, guided by his moral compass. But almost immediately, he found himself engulfed by the David Abrahams affair concerning illegal proxy donations. That investigation is still ongoing, and now Brown faces yet another police inquiry.

Hain’s resignation has hit Brown hard. Just seven months into office, he has been forced to carry out a major cabinet reshuffle following the resignation of a senior minister.

It may not be the last time he has to do so. Brown’s efforts to restore the image of his government are in ruins. The Financial Times commented that Hain’s resignation was “a dark day for the prime minister” and speculated that there could be more to come.

The inquiry into donations made by property developer David Abrahams may yet bring other senior Labour figures down. Harriet Harman, who won the deputy leadership contest, admits that she received £5,000 from one of Abrahams’s intermediaries. She says that she was unaware that this was a proxy donation, which is illegal under legislation brought in by the Labour government.

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