The Culture Secretary, Maria Miller, has resigned after a week of mounting pressure over her expenses investigation.
In a letter to David Cameron Mrs Miller told him she was "very grateful" for his personal row during the growing row over her expenses but feared it "has become a distraction from the vital work this Government is doing."
Mr Cameron said he was saddened by her departure but hoped she could make a return "in due course".
Mrs Miller finally stepped down six days after she was forced to apologise in the House of Commons for her attitude to an inquiry into the allowance claimed on her second home.
The Prime Minister, who had consistently backed his minister, had been under increasing pressure in recent days to sack her from Tory activists and MPs, and Mrs Miller's position had become untenable.
Mr Cameron was facing a difficult time at Prime Minister's Questions at lunchtime and had to tackle Tory back benchers at a meeting of the powerful Conservatives 1922 committee later.
However, following the announcement of her resignation, there was criticism that it had taken so long for her to step down and questions over Mr Cameron's leadership.
Sky's Sophy Ridge said: "It does come down to David Cameron's leadership. There will be some people on his back benches who think he should have acted more quickly, more decisively."
Mrs Miller's camp had on Tuesday night attempted a fight-back after days of newspaper headlines and the faltering support for her within Government.
Her aide Mary Macleod appeared on Sky News to claim she was a victim of a witch-hunt because she was dealing with press reforms recommended in the Leveson report.
She also claimed that Mrs Miller was unpopular because she was responsible for steering through the legislation on gay marriage.
In her resignation letter Mrs Miller said: "Of course, implementing the recommendations made by Lord Justice Leveson on the future of media regulation, following the phone hacking scandals, would always be controversial for the press.
"Working together with you, I believe we struck the right balance between protecting the freedom of the press and ensuring fairness, particularly for victims of press intrusion, to have a clear right of redress."
Mrs Miller issued a much-derided 32-second apology on Thursday after Parliament's sleaze watchdog upbraided her for her attitude to an expenses inquiry into her claims for a second home.
She was also ordered to pay back £5,800 of wrongly claimed allowances on the house in Wimbledon, southwest London, which she sold for a £1.2m profit in February.
However, it emerged that the Commissioner for Parliamentary Standards had found that Mrs Miller should have paid back £45,000 in expenses claimed on the home but this was over-ruled by the Standards Committee of 10 MPs and three independent members, who do not have a vote.
It led to calls for an end to a system where MPs are allowed to police their own expenses, with the head of the Independent Parliamentary Standards Authority, Sir Ian Kennedy, saying they should not "mark their own homework".
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