Two ministers in the British government have resigned following a controversy over a financial transaction between them.

One of them is the Trade and Industry Secretary, Peter Mandelson, a close ally of the Prime Minister, Tony Blair.

His decision follows the recent disclosure that he'd received a large loan two years ago from the other minister involved, Geoffrey Robinson, who is the Paymaster General.

Mr Mandelson did not disclose the loan even though he subsequently became head of the department charged with investigating Mr Robinson's business interests.

Mr Mandelson maintained he had done nothing improper, but he said Labour had taken office promising the highest standards in public life.

In this area, he said, image was as important as reality.