IN the wake of one of the worst local election results in Labour's history, Tony Blair couldn't sit on his hands and do nothing.

Charles Clarke was an easy target. He clearly had to go and his grumpy assertion that the Prime Minister was wrong to sack him simply underlines the fact that Mr Clarke's own judgement leaves a lot to be desired.

But what about John Prescott? Here is a man who has heaped further embarrassment on the Government but has only been half-shuffled by Mr Blair.

Love-cheat Mr Prescott stays as Deputy Prime Minister but loses his department and the responsibilities that go with it. And yet he keeps all the trappings, including car, salary and two grace and favour homes. Nice work if you can get it.

Mr Blair has insisted that his deputy's affair with a secretary was a private matter which did not impinge on his job.

The Prime Minister can't have it both ways. Mr Prescott either abused his Cabinet position or he didn't.

The fudge, cooked up by Mr Blair, is like keeping Sven Goran-Eriksson as England manager with all the perks, but asking someone else to run the team.

These are perilous times indeed for the Sedgefield MP who has given the Labour Party three historic terms in power.

And, of all the reshuffles he has made in the last nine years, this is not only the most extensive, but by far the most important in terms of his own future.