No 10 chief denies cover-up to fool police in cash for honours investigation

Andrew Pierce, Chris Hope and George Jones
The Telegraph
Feb. 08, 2007

Whitehall's most senior civil servant yesterday publicly denied that there had been any cover-up within Downing Street to thwart the police in the cash for honours investigation.

Sir Gus O'Donnell, the Cabinet Secretary, also dismissed reports that Downing Street had operated a second secret email system for confidential messages about the award of peerages.

Challenged about the level of co-operation as he gave evidence to the Commons public administration committee, Sir Gus said that officials were "complying fully".

When asked about allegations of a second IT system used to send emails, he replied: "There's no second email system inside No 10.

"I find it deeply worrying just how much media coverage there is."

Sir Gus said police had previously accepted that they were receiving full co-operation after he was questioned on whether detectives had full access to all documentation.

"There's no reason to think that's changed," he said.

Sir Gus was speaking on the day it was reported that Jonathan Powell, the No 10 chief of staff, would be interviewed by detectives for a third time. The first Mr Powell knew about the interview was from reports in the media.

They have served to harden the view within the Government that the police are behind a series of damaging leaks.

It was also announced by the Crown Prosecution Service that Des Smith, 60, the former head teacher who was the first to be arrested in the inquiry will not be charged.

Mr Smith had allegedly told an undercover reporter that big sponsors of the Prime Minister's city academies could secure honours.

Mr Blair, meanwhile, sent out a defiant message to his critics that it was still business as usual in Downing Street.

He set out a range of policy issues from further NHS reform to tackling climate change to try to demonstrate that his in-tray still overflows.

In a relaxed question-and-answer session before the Commons liaison committee, Mr Blair gave no indication that he was feeling the strain of the 11-month police inquiry during what was scheduled as his last appearance before the committee of senior MPs he addresses twice a year.

But Alan Williams, the chairman, announced that the Prime Minister had agreed to a valedictory session even if it meant bringing it forward from its planned date of mid-July, the first sign from Downing Street that Mr Blair might go before then.

The Prime Minister began with a 10-minute presentation of "emerging conclusions" of his policy review which is seen as an attempt to bind the hands of his successor.

These included moves to get single mothers and long-term unemployed off benefits back into work. It will mean a million fewer people on incapacity benefit, 300,000 more lone parents in work and one million more older workers in jobs than at present.

A climate change Bill will enable people to measure their "carbon footprint" to help them take steps to reduce it — but he ruled out big tax rises to force people out of their cars or to stop flying.

He backed a proposed NHS database with electronic patient records and said offenders carrying out community sentences could wear yellow jackets, with Community Payback" across the back.