BBC News Online: UK Politics

Blair challenged over donation 'lies'

They have asked the standards watchdog, Lord Neill, to investigate whether he was misled over the donation, made by Formula One chief Bernie Ecclestone.

The book says that Mr Blair believed he would be forced out of office over the affair, only six months into his term of office.

According to the Mail, Mr Blair told a friend at the time of the crisis: "This is the end ... they'll get me for this."

'Twin lies'

Mr Ecclestone's gift, in 1997 before the May election, proved an embarrassment for Mr Blair, who faced allegations that the money had influenced the government's decision to seek an exemption later for Formula One from a European tobacco advertising ban.

The affair became known as the "cash for favours" row.

Labour followed the advice of standards commissioner Lord Neill and returned the money.

But Mr Rawnsley says Mr Blair and Mr Brown were embroiled in two lies over the donation from the multi-millionaire racing chief. The allegations are:

• Mr Brown told BBC Radio 4's Today programme he knew nothing about the donation, but admitted privately afterwards that he had lied, saying: "If this gets out, I'll be destroyed."

• Mr Blair claimed he had sought the advice about the £1m donation from Lord Neill before any journalists had been in touch. In fact, the prime minister contacted Lord Neill only after reporters began to break the scandal. And his letter asked for advice about a second offered donation, not the first, according to Mr Rawnsley's book.

Hague's challenge

Conservative leader William Hague challenged Mr Blair to respond to the claims by making a public statement.

"No more serious allegation has been made against a sitting prime minister in modern times," he said.

It was vital that the government cleared the matter up, said Mr Hague.

Conservative frontbencher Andrew Lansley is writing to Lord Neill, asking him to reconsider the advice given and whether Mr Brown and Mr Blair had misled him.

'Re-heated allegations'

Downing Street dismissed the allegations and ridiculed the Daily Mail report.

A spokesman said the headline about Mr Blair lying was misleading and was "singularly unsubstantiated by the rest of the article".

Liberal Democrat leader Charles Kennedy said clarification was needed: "Obviously I do not know the truth or otherwise of these allegations. I am quite sure the prime minister, as a truthful person, has not misled people, but if he has been misled he will want to find out why."

'Fuel tax diversion'

But a spokesman for Gordon Brown said the book told the country "absolutely nothing" about what happened.

"I think it is extraordinary the story is in the papers. It is a very old story and not the most important thing which is before the British people."

Mr Rawnsley said his book was based on hundreds of interviews and extensive research into the apex of government.

He said when Mr Blair used a television interview to apologise for the scandal, it diverted attention from the inconsistencies in his story.