The position of the Prime Minister, Gordon Brown is continuing to look shaky.

The Trade Minister, Lord Digby Jones of Birmingham, the former Director-General of the CBI is to resign before the next election in order to avoid a row that could damage the Government.

The Times reports that the controversial minister told business leaders and lobbyists his plans at a private meeting at the Labour Party headquarters in Great Smith Street on the 29th January 2008.

The newspaper claims that he said he finds working as an appointed peer in the House of Lords frustrating.

Lord Jones is reported to have repeated his criticisms at the Government’s polices towards wealthy “non-domiciles” and recent changes to the capital gain tax regime.

On Saturday, Matthew Parris, the gay former MP and columnist for The Times suggested that Mr Brown could soon face a leadership challenge.