In other changes, John Reid, Blair's gritty, tough-talking health minister, was moved to defense, replacing Geoff Hoon, who becomes the government's leader in the House of Commons. Former House of Commons leader Peter Hain replaced Paul Murphy as Northern Ireland secretary.
Conservative chief Howard, who led his once-mighty party to a third successive defeat, announced he would step down once party leaders decide on a successor, expected to happen in the next six months.
"I have said that if people don't deliver they go, and for me, delivering meant winning the election. I didn't do that," Howard said.
Despite the defeat, many Tories were emboldened by the party's improved showing -- up by more than 30 Commons seats -- and credited Howard with restoring order in the party.
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