Tories warn Blair over Cherie row

Cherie Blair bought two flats in Bristol

Conservative leader Iain Duncan Smith says the handling of the Cherie Blair property row raises questions about the integrity of Downing Street.

He said it was "critical" the prime minister's director of communications Alastair Campbell "clear up" what Downing Street spokesmen knew when they denied convicted fraudster Peter Foster helped Mrs Blair purchase two flats in Bristol.

This must now be settled otherwise it saps at the very heart of the highest office and the highest office holder in the land

Iain Duncan Smith
Tory leader

That initial denial last weekend had to be corrected on Thursday when the Daily Mail published e-mails confirming Mr Foster's role in negotiation on the flats. Mrs Blair subsequently apologised for any "misunderstanding".

However, Mr Duncan Smith said newspaper stories now suggested that Mr Campbell already held "major concerns over these relationships".

Mr Duncan Smith, speaking on BBC One's On the Record, said he was not going to call for any resignations but said the stories "call into question how much was known before the denials were made".

'Saps at the office'

He said it was a matter of some "genuine concern" that Alastair Campbell was "almost briefing" against the prime minister's wife.

Mr Duncan Smith, who refuses to comment on Mrs Blair's judgement or behaviour, added of Downing Street's handling of it: "My concern however is that without integrity and legitimacy and honesty, then government cannot function.

The key question is quite simply, are they giving... parliamentary and political correspondents and journalists an accurate account?

Charles Kennedy
Lib Dem leader

"And this must now be settled otherwise it saps at the very heart of the highest office and the highest office holder in the land."

Earlier Liberal Democrat leader Charles Kennedy also said questions remained about the prime minister's office's statements to the political media.

"I do think there's a legitimate issue about the extent to which the Downing Street machine has handled this sensibly and there are probably questions to be asked there," he told GMTV's The Sunday Programme.

"The key question is quite simply, are they giving... parliamentary and political correspondents and journalists an accurate account?

"If there's a question of whether people are being consciously misled, that is something that raises more serious issues."

Downing Street denials

Downing Street responded to Mr Duncan Smith's comments by saying it had replied "exhaustively" to points put to it and no-one had found evidence of "impropriety".

The fall-out from the row dominates the Sunday newspapers, with Downing Street dismissing suggestions that Mrs Blair backed an attempt by a convicted fraudster to market a healthy lifestyle programme for children.

Peter Foster wanted to market a lifestyle programme

The Sunday Mirror has published an e-mail it claims was sent to a business colleague by Peter Foster around the same time he was helping the prime minister's wife with the purchase of two flats.

In the e-mail Mr Foster is alleged to have boasted how he hoped to get the support of Mrs Blair and her eldest son Euan for a marketing campaign he was involved in.

A Downing Street spokesman said the subject was never discussed with Mrs Blair and she had no knowledge of any campaign, nor was there any agreement to promote it.

The claims are the latest in a storm of controversy hanging over Number 10 concerning Mrs Blair's dealings with Mr Foster.

Cherie Blair 'regrets misunderstanding'
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And on Saturday police confirmed that the accountant Andrew Axelson, who arranged Mrs Blair's mortgage on the two flats, is due to stand trial on fraud charges.

Mr Axelsen has been charged over contracts awarded for London Underground's Jubilee Line extension, British Transport Police said.

Mrs Blair has said she did not know about Mr Foster's past when she accepted his help buying the Bristol flats.

International Development Secretary Clare Short told BBC Radio 4's Westminster Hour Cherie Blair had done nothing wrong.

She described the "targeting" of the prime minister's wife as "intolerable" and complained British political correspondents "have gone bananas".