This arrived in Guido’s inbox at 12.48. It will no longer cost you a £10,000 retainer with a lobbying firm for some face-time with Liam:

Hammersmith Conservative Association Annual Dinner – Tuesday 29th November

All of our members will also receive an invitation in the post, but can I take this opportunity to formally invite you all to our Hammersmith Conservative Association Annual Dinner for 2011.

· We have great pleasure in announcing that the Rt Hon Dr Liam Fox MP, Secretary of State for Defence will be our speaker. I am sure he will be a lively and fascinating speaker.

· The dinner will be at Jamie’s Italian, Ariel Way – a fabulous location with excellent food.

Cheques made payable to Mr. A. Werritty?

UPDATE: Sources confirm he has gone and it was his connections to private spook outfit G3 that pushed him over the edge.

Dear Liam,

Thank you for your letter.

I understand your reasons for deciding to resign as Defence Secretary, although I am very sorry to see you go.

We have worked closely for these last six years, and you have been a key member of my team throughout that time.

You have done a superb job in the 17 months since the election, and as Shadow Defence Secretary before that.

You have overseen fundamental changes in the Ministry of Defence and in our Armed Forces, which will ensure that they are fully equipped to meet the challenges of the modern era.

On Libya, you played a key role in the campaign to stop people being massacred by the Gaddafi regime and instead win their freedom.

You can be proud of the difference you have made in your time in office, and in helping our party to return to Government.

I appreciate your commitment to the work of this Government, particularly highlighting the need to tackle the deficit, and the relationship between Britain’s economic strength and our national security.

You and Jesme have always been good friends, and I have truly valued your support over the years. I will continue to do so in the future.

Yours ever,

David

The inevitable Dear David:

Dear David,

As you know, I have always placed a great deal of importance on accountability and responsibility. As I said in the House of Commons on Monday, I mistakenly allowed the distinction between my personal interest and my Government activities to become blurred. The consequences of this have become clearer in recent days. I am very sorry for this.

I have also repeatedly said that the national interest must always come before personal interest. I now have to hold myself to my own standard. I have therefore decided, with great sadness, to resign from my post as Secretary of State for Defence – a position which I have been immensely proud and honoured to have held. I am particularly proud to have overseen the long overdue reforms to the Ministry of Defence and to our Armed Forces, which will shape them to meet the challenges of the future and keep this country safe.

I am proud also to have played a part in helping to liberate the people of Libya, and I regret that I will not see through to its conclusion Britain’s role in Afghanistan, where so much progress has been made. Above all, I am honoured and humbled to have worked with the superb men and women in our Armed Forces. Their bravery, dedication and professionalism are second to none.

I appreciate all the support you have given me – and will continue to support the vital work of this Government, above all in controlling the enormous budget deficit we inherited, which is a threat not just to this country’s economic prosperity but also to its national security.

I look forward to continuing to represent my constituents in North Somerset.

Yours ever,

Liam

With Fox looking more and more likely to walk today, it’s time to turn attention to who might take over:

• Andrew Mitchell – Been deadly silent all week, has had it in for Fox for months, known on the international stage.

• Philip Hammond – Mr Clean Up.

• Sir Malcolm Rifkind  – Was heavily tipped to take over if Hague had to walk, and has been brought out as an elder statesman this summer.

• David Davis – An easy “one out, one in” for the Tory right but Dave said to still be sceptical.

• Owen Paterson – The “happily married”* Northern Ireland Secretary has impressed in his brief.

• Chris Grayling – Demoted after a poor election campaign, about time for a comeback?

• Jeremy Browne – LibDem outrider, right-winger in the FCO.

• Paddy Ashdown – Popular bar talk for LibDems but unlikely.

• IDS  – More than qualified but said to be very happy where he is.

The bookies have stopped taking bets on Fox to go and you can put your money on his successor here.

* Copyright Kevin Maguire

Oliver Letwin tells Sky News…

“It is of course embarrassing.”