STEPHEN Byers, the embattled transport secretary has resigned, saying 'it was the right thing to do' for the Labour Party.

The announcement was made this afternoon (after Fleet News went to press) and prompts a cabinet reshuffle which will take place tomorrow.

Byers, who has been at the centre of a series of controversies during the last few months - most notably his decision to put Railtrack into administration - and increasing pressure to resign, admitted his presence was damaging to the Government.

'I am leaving because I am sure it is the right thing to do for the Government and the Labour Party,' he said. 'The people that know me best know that I am not a liar.'