Blair envoy's £100,000 payment

Tony Blair's personal envoy to the Middle East faced fresh calls today to explain his £100,000 payment from an Australian company as a fresh "cash for access" row opened up more trouble for Labour.

Opposition parties stepped up pressure over claims that property developers Westfield had paid the money to Lord Levy and had been able to hold meetings with planning minister Lord Falconer. Westfield wants to build big shopping centres in Britain.

Lord Levy denied that his retainer had provided Westfield bosses with access to Downing Street.

But No 10 was forced to admit that it was "not impossible" that Westfield's European operations head, Peter Allen, had attended functions there.

There were calls for Mr Blair to dismiss Lord Levy from his unofficial role as Middle East envoy. Even some Labour MPs said there was a "problem" with the peer's special status. Lord Levy, a close personal friend of the Prime Minister, has not included the £100,000 payment from Westfield in the Register of Peers' Interests. His spokesman said he had been advised that he did not need to because it was made before a rule change came into effect.

The spokesman hit out at " spurious allegations" about the peer's business affairs and suggested he had been the victim of a dirty-tricks campaign.