Coalition leaves door ajar after disgraced Laws' exit

London: Senior Tory ministers predict that the Liberal Democrat David Laws will one day return to the cabinet, after he was forced to resign last night over revelations about his expenses.

Laws, appointed less than three weeks ago to cut the UK's £156 billion deficit as first secretary to the Treasury, stood down saying he no longer believed his position was tenable.

This was after it was revealed that Laws had claimed more than £40,000 to live in his partner's house. Commons rules introduced in 2006 barred such claims by MPs.

His decision marked a sudden and dramatic end to the brief honeymoon enjoyed by David Cameron's and Nick Clegg's new government.

It also brought to an end one of the briefest cabinet careers in recent history.

Iain Duncan Smith, the work and pensions secretary and former Tory leader, said Laws had the ability to make a political comeback.

"I think on balance he is right. If you have got the toughest job in government to try and find the savings, you cannot be beset by personal problems," Duncan Smith said.

He added: "I have no questions at all that he has the talent to be back."

The international development minister, Alan Duncan, the first openly gay Tory MP, said: "David is a much liked and talented person whose progress we all valued. I'm upset by the hurt this must have caused him and I hope he'll soon be back."

‘Most difficult'

Laws, who returned to London from his Yeovil constituency to announce his decision, said in his resignation statement that the previous 24 hours had been the most difficult and painful of his life.

In a letter to Cameron, he said he felt he had no option but to step down.

"I do not see how I can carry on my crucial work on the budget and spending review while I have to deal with the private and public implications of recent revelations."

"At this important time the chancellor needs, in my own view, a chief secretary who is not distracted by personal troubles," he wrote.

He added: "I hardly need to say how much I regret having to leave such vital work, which I feel all my life has prepared me for."

Laws said his decisions over his expenses had been dictated by his wish to keep his homosexuality secret.

Danny Alexander, the Lib Dem MP and Scottish secretary, will replace Laws at the Treasury. Cameron offered hope of a future return to the government for Laws.