The second Blair ministry lasted from June 2001 to May 2005. Following the financial crisis in Japan at the end of the 1990s, there was a brief recession in other parts of the developed world including Germany, Italy and France in the early-2000s, but the UK avoided recession and continued to maintain a strong economy and low unemployment.
By the time the next general election was on the horizon, Labour were looking well positioned for a record third successive term in government. Unemployment remained low and the economy remained strong with more than a decade of unbroken growth, and education and healthcare had changed for the better as a result of expenditure by Labour.
However, the Labour government had attracted controversy by sending British troops to fight in Afghanistan in the aftermath of the 11 September terrorist attacks on the United States in 2001, and even more so when it joined the American-led invasion of Iraq eighteen months later – particularly when it emerged that the ousted Iraqi leader Saddam Hussein's alleged weapons of mass destruction were never found, and serious questions were raised about the issue of going to war. Although the regimes in both of these countries were swiftly ended by British and American troops, the remaining British forces were not withdrawn from Iraq until 2009 and not from Afghanistan until 2021.
Soon after the controversial invasion of Iraq in 2003, Labour support in the opinion polls fell and the Conservatives drew level with them in at least one poll during 2003. However, this did little to end speculation about the future of their unpopular leader Iain Duncan Smith and in October 2003, he lost a vote of no confidence and was replaced by Michael Howard, who stood unopposed for the leadership role and took control without a leadership contest.
Cabinet Portfolio Minister TermCabinet ministersPrime MinisterFirst Lord of the TreasuryMinister for the Civil ServiceTony Blair1997–2007Deputy Prime MinisterFirst Secretary of StateJohn Prescott1997–2007Chancellor of the ExchequerSecond Lord of the TreasuryGordon Brown1997–2007Lord High Chancellor of Great BritainDerry Irvine, Baron Irvine of Lairg1997–2003Charlie Falconer, Baron Falconer of Thoroton2003–2007Secretary of State for Constitutional AffairsCharlie Falconer, Baron Falconer of Thoroton2003–2007Leader of the House of CommonsRobin Cook2001–2003John Reid2003Peter Hain 2003–2005Lord President of the CouncilRobin Cook2001–2003John Reid2003Gareth Williams, Baron Williams of Mostyn2003Valerie Amos, Baroness Amos2003–2007Leader of the House of LordsGareth Williams, Baron Williams of Mostyn2001–2003Valerie Amos, Baroness Amos2003–2007Lord Keeper of the Privy SealGareth Williams, Baron Williams of Mostyn2001–2003Peter Hain2003–2005Chief Secretary to the TreasuryAndrew Smith1999–2002Paul Boateng2002–2005Foreign SecretaryJack Straw2001–2006Home SecretaryDavid Blunkett2001–2004Charles Clarke2004–2006Secretary of State for Environment, Food and Rural AffairsMargaret Beckett2001–2006Secretary of State for Transport, Local Government and the RegionsStephen Byers2001–2002Secretary of State for TransportAlistair Darling2002–2006Secretary of State for HealthAlan Milburn1999–2003John Reid2003–2005Secretary of State for DefenceGeoff Hoon1999–2005Secretary of State for Work and PensionsAlistair Darling2001–2002Andrew Smith2002–2004Alan Johnson2004–2005Secretary of State for Education and SkillsEstelle Morris2001–2002Charles Clarke2002–2004Ruth Kelly2004–2006Secretary of State for Trade and IndustryPresident of the Board of TradeMinister for WomenPatricia Hewitt2001–2005Secretary of State for Culture, Media and SportTessa Jowell2001–2007Secretary of State for International DevelopmentClare Short1997–2003Valerie Amos, Baroness Amos2003Hilary Benn2003–2007Secretary of State for Northern IrelandJohn Reid2001–2002Paul Murphy2002–2005Secretary of State for ScotlandHelen Liddell2001–2003Alistair Darling2003–2006Secretary of State for WalesPaul Murphy1999–2002Peter Hain2002–2008Minister without PortfolioChairman of the Labour PartyCharles Clarke2001–2002John Reid2002–2003Ian McCartney2003–2006Also attending cabinet meetingsChief WhipParliamentary Secretary to the TreasuryHilary Armstrong2001–2006Attorney General for England and WalesPeter Goldsmith, Baron Goldsmith2001–2007
Changes May 2002 – Stephen Byers resigns and the Department of Transport, Local Government & the Regions is broken up. Alistair Darling becomes Secretary of State for Transport. John Prescott's Office of the Deputy Prime Minister assumes the Local Government & the Regions portfolio. Andrew Smith becomes Work and Pensions Secretary. Paul Boateng becomes Chief Secretary to the Treasury. Complete list of changes October 2002 – Estelle Morris resigns. Charles Clarke becomes Education Secretary; John Reid becomes Minister without Portfolio and Labour Party chairman. Paul Murphy becomes Northern Ireland Secretary. Peter Hain becomes Welsh Secretary. March 2003 – Robin Cook resigns. John Reid becomes Lord President of the Council & Leader of the House of Commons. Ian McCartney becomes Minister without Portfolio and Labour Party chairman. May 2003 – Clare Short resigns and is succeeded by Baroness Amos as International Development Secretary. June 2003 – In a reshuffle John Reid becomes Health Secretary. Lord Falconer of Thoroton assumes the new position of Secretary of State for Constitutional Affairs, also becoming Lord Chancellor. Alistair Darling becomes Scottish Secretary remaining also Transport Secretary. Peter Hain becomes Lord Privy Seal & Leader of the House of Commons, remaining also Welsh Secretary. Alan Milburn, Lord Irvine and Helen Liddell leave the Cabinet. Complete list of changes October 2003 – Baroness Amos becomes Lord President of the Council & Leader of the House of Lords, following the death of Lord Williams of Mostyn. Hilary Benn becomes International Development Secretary. September 2004 – Andrew Smith resigns as Secretary of State for Work and Pensions and is succeeded by Alan Johnson. Alan Milburn returns to government with a seat in the Cabinet as Chancellor of the Duchy of Lancaster mainly at the head of policy co-ordination; he replaces Douglas Alexander, who was not in the Cabinet. December 2004 – David Blunkett resigns as Home Secretary and is succeeded by Charles Clarke. Ruth Kelly succeeds Clarke as Secretary of State for Education and Skills.
List of ministers
Prime Minister, the Cabinet Office and non-Departmental ministers Cabinet OfficeTony Blair June 2001 – May 2005John Prescott June 2001 – May 2005Gus Macdonald, Baron Macdonald of Tradeston June 2001 – June 2003Douglas Alexander June 2003 – September 2004Alan Milburn September 2004 – May 2005Minister of State for the Cabinet OfficeBaroness Morgan of Huyton (also Deputy Minister for Women) June–November 2001Barbara Roche (also Deputy Minister for Women) June 2001 – May 2002Douglas Alexander May 2002 – June 2003Ruth Kelly September–December 2004David Miliband December 2004 – May 2005Lord High Chancellor of Great BritainDerry Irvine, Baron Irvine of Lairg June 2001 – June 2003Charlie Falconer, Baron Falconer of Thoroton June 2003 – May 2005Lord President of the CouncilRobin Cook June 2001 – March 2003John Reid March 2003 – June 2003Gareth Williams, Baron Williams of Mostyn June–September 2003Valerie Amos, Baroness Amos September 2003 – May 2005Lord Keeper of the Privy SealGareth Williams, Baron Williams of Mostyn June 2001 – June 2003Peter Hain June 2003 – May 2005Charles Clarke June 2001 – October 2002John Reid October 2002 – April 2003Ian McCartney April 2003 – May 2005 Parliamentary Under Secretary of StateChris Leslie June 2001 – May 2002
Departments of state TreasuryChancellor of the ExchequerGordon Brown June 2001 – May 2005Chief Secretary to the TreasuryAndrew Smith June 2001 – May 2002Paul Boateng May 2002 – May 2005Paymaster GeneralDawn Primarolo June 2001 – May 2005Financial Secretary to the TreasuryPaul Boateng June 2001 – May 2002Ruth Kelly May 2002 – September 2004Stephen Timms September 2004 – May 2005Economic Secretary to the TreasuryRuth Kelly June 2001 – May 2002John Healey May 2002 – May 2005
Foreign and Commonwealth OfficeForeign SecretaryJack Straw June 2001 – May 2005Minister of State for the Middle EastElizabeth Symons, Baroness Symons of Vernham Dean (also Minister for Trade jointly with Trade and Industry June 2001 – June 2003) June 2001 – May 2005Minister of State for EuropePeter Hain June 2001 – October 2002Denis MacShane October 2002 – May 2005Parliamentary Under-Secretary of State for the Balkans and Latin AmericaDenis MacShane June 2001 – October 2002 Minister of State for TradeMike O'Brien (jointly with Trade and Industry) June 2003 – September 2004Douglas Alexander (jointly with Trade and Industry) September 2004 – May 2005 Parliamentary Under Secretary of StateBen Bradshaw June 2001 – May 2002Valerie Amos, Baroness Amos June 2001 – May 2003Mike 0'Brien May 2002 – June 2003Bill Rammell October 2002 – May 2005Chris Mullin June 2003 – May 2005
Home OfficeHome SecretaryDavid Blunkett June 2001 – December 2004Charles Clarke December 2004 – May 2005Minister of State for PolicingJohn Denham June 2001 – June 2003Hazel Blears June 2003 – May 2005Minister of State for PrisonsKeith Bradley June 2001 – May 2002Hilary Benn May 2002 – May 2003Patricia Scotland, Baroness Scotland of Asthal June 2003 – May 2005Minister of State for Immigration, Citizenship and CounterterrorismJeff Rooker, Baron Rooker June 2001 – May 2002Beverley Hughes May 2002 – April 2004Des Browne April 2004 – May 2005 Minister for Criminal PolicyCharlie Falconer, Baron Falconer of Thoroton May 2002 – June 2003 Parliamentary Under Secretary of StateBeverley Hughes June 2001 – May 2002Bob Ainsworth June 2001 – June 2003Angela Eagle June 2001 – May 2002Geoffrey Filkin, Baron Filkin May 2002 – June 2003Michael Wills May 2002 – July 2003Paul Goggins May 2003 – May 2005Caroline Flint June 2003 – May 2005Fiona MacTaggart June 2003 – May 2005
Department for Environment, Food and Rural AffairsSecretary of State for Environment, Food and Rural AffairsMargaret Beckett June 2001 – May 2005Minister of State for the EnvironmentMichael Meacher June 2001 – June 2003Elliot Morley June 2003 – May 2005Minister of State for Rural AffairsAlun Michael June 2001 – May 2005 Parliamentary Under Secretary of StateElliot Morley June 2001 – June 2003Larry Whitty, Baron Whitty June 2001 – May 2005Ben Bradshaw June 2003 – May 2005Catherine Ashton, Baroness Ashton of Upholland (jointly with Constitutional Affairs) September 2004 – May 2005
DefenceSecretary of State for DefenceGeoff Hoon June 2001 – May 2005Minister of State for the Armed ForcesAdam Ingram June 2001 – May 2005Minister for Defence ProcurementThe Lord Bach June 2001 – May 2005 Parliamentary Under Secretary of State for VeteransLewis Moonie June 2001 – June 2003Ivor Caplin June 2003 – May 2005
Education and SkillsSecretary of State for Education and SkillsEstelle Morris June 2001 – October 2002Charles Clarke October 2002 – December 2004Ruth Kelly December 2004 – May 2005Minister of State for SchoolsStephen Timms June 2001 – October 2002David Miliband October 2002 – December 2004Stephen Twigg December 2004 – May 2005Minister for Higher EducationMargaret Hodge June 2001 – June 2003Alan Johnson June 2003 – September 2004Kim Howells September 2004 – May 2005Minister for ChildrenMargaret Hodge June 2003 – May 2005 Parliamentary Under Secretary of State for Early Years & School Standards (jointly with Work & Pensions from June 2003)Catherine Ashton, Baroness Ashton of Upholland June 2001 – September 2004Lord Filkin September 2004 – May 2005 Parliamentary Under Secretary of State for Adult SkillsJohn Healey June 2001 – May 2002Ivan Lewis May 2002 – May 2005 Parliamentary Under Secretary of State for Young People & LearningIvan Lewis June 2001 – May 2002Stephen Twigg May 2002 – December 2004