Hospital Stay Finishes For Ex-PM

Margaret Thatcher will leave hospital on Monday after two weeks of treatment following a broken arm.

The ex-PM had an operation at the Chelsea and Westminster hospital on June 19 and was said today to be in "good spirits".

Her spokesman said: "Lady Thatcher will be returning home tomorrow. She is in good spirits and recovering well."

The Iron Lady remained in hospital for far longer than was originally expected.

She had surgery to insert a pin into her upper left arm which she broke in a fall at her home.

Doctors decided on the move after the injury failed to heal as quickly as they would have liked.

Lady Thatcher has suffered a number of health scares in recent years, including a series of minor strokes.

In March last year, she spent a night in hospital after feeling unwell while having dinner with friends.

Last summer, her daughter Carol revealed her mother was suffering from dementia.

Lady Thatcher cut down her commitments - all but stopping speaking in public - on the advice of doctors several years ago but she continues to attend ceremonial functions.

Govt Beats Tory Iraq Inquiry Motion

The Government has comfortably beaten a Tory motion to revise its proposals for the Iraq inquiry following a number of concessions.

Earlier, Gordon Brown's spokesman said the Prime Minister would be willing to give evidence to the inquiry in public.

Ahead of the Opposition Day debate, his spokesman said

Italian PM: 'I Never Paid For Sex'

Italy's prime minister has told a gossip magazine he never paid for sex amid scandalous claims about women at his parties.

Silvio Berlusconi has been dogged by suspicions stemming from his purported fondness for young models and starlets.

The 72-year-old billionaire gave his first direct response to the claims in an interview with Chi magazine.

Junior Minister Resigns From Govt

Junior Treasury minister Kitty Ussher has resigned from the Government, saying she did not want to "embarrass" Gordon Brown.

Her decision to step down follows allegations over her claims for parliamentary expenses.

In a letter to the Prime Minister, the Burnley MP said she had not abused the expenses system, but did not want to cause "any embarrassment" to him or his Government.

The Daily Telegraph reported last month that within months of being elected in 2005, Ms Ussher asked the Commons authorities to fund extensive refurbishment of her Victorian family home in South London, including the removal of a "bad taste" Artex ceiling.

Further revelations about Ms Ussher's expenses are expected to be published in Thursday's Daily Telegraph.

Ms Ussher was moved to the post of Exchequer Secretary to the Treasury just 12 days ago in Mr Brown's most recent reshuffle.

She had previously served in a more junior role at the Treasury before spending nine months at the Department for Work and Pensions.

Explaining her decision to quit, she said: "I arrived at this decision because I do not want to cause you or the Government any embarrassment.

"I did not do anything wrong. At all times, my actions have been in line with HM Revenue and Customs guidance and based on the advice of a reputable firm of accountants who in turn were recommended to me by the House of Commons Fees Office.

"Neither have I abused the allowance system of the House of Commons in any way."

She added: "I support your leadership and am 100% loyal to the Labour Party which is why I do not wish to cause you or the party any difficulties."

Ms Ussher, 38, who has two children aged under five, said she had come to the decision "some time ago" to leave Parliament at the next election for family reasons.

She said in today's letter: "The hours of Parliament simply don't work with the kids. There is no other reason for this decision."

Downing Street announced that Portsmouth North MP Sarah McCarthy-Fry was being moved to the Treasury to replace Ms Ussher.

MsMcCarthy-Fry has only been in her current job at the Department for Communities and Local Government for less than a fortnight.

She was given responsibility for local democracy and council finance in the recent reshuffle.

A No 10 spokesman said: "The Prime Minister has accepted the resignation of Kitty Ussher.

"Sarah McCarthy-Fry has been appointed as her replacement. A successor to Ms McCarthy-Fry will be announced in due course."

Brown holds meeting 'next steps'

The cabinet is meeting for a three-hour session to discuss the "next steps" for public sector reform as Gordon Brown tries to regain the initiative.

The PM is seeking to put recent turmoil behind him as he focuses on how tighter finances might affect domestic policy.