Confirmed Cabinet line-up:
Charles Clarke leaves the Home Office to return to the backbenches, having turned down a series of other jobs.
John Reid becomes home secretary.
Des Browne becomes defence secretary.
Stephen Timms joins the cabinet, replacing Browne as chief secretary to the Treasury.
Jack Straw leaves the post of foreign secretary to become Commons leader.
Geoff Hoon leaves the leader of the House role to become minister for Europe, attending cabinet, with Maragaret Beckett the new foreign secretary.
David Miliband becomes environment secretary.
John Prescott stays on as deputy prime minister and deputy Labour leader but loses policy and departmental responsibilities.
Ruth Kelly takes over Prescott's and Miliband's policy responsibilities for communities, housing and local government.
Jacqui Smith joins the cabinet as chief whip, replacing Hilary Armstrong, who stays in the cabinet as social exclusion minister and chancellor of the Duchy of Lancaster.
Alan Johnson becomes education secretary.
Alistair Darling becomes trade and industry secretary, with Douglas Alexander taking on his dual role as transport and Scotland secretary, joining the cabinet in full.
Home Office minister Hazel Blears is also expected to join the cabinet as Labour Party chairman, replacing Ian McCartney who stands down after suffering from ill health.
Chancellor Gordon Brown, health secretary Patricia Hewitt, culture secretary Tessa Jowell, work and pensions secretary John Hutton, international development secretary Hilary Benn and Northern Ireland and Wales secretary Peter Hain remain in post.