Cherie: My regrets on conman

Cherie Blair today dramatically told of her regrets over her dealing with a convicted conman who helped her to buy two flats.

Mrs Blair broke her silence to issue an extraordinary public statement detailing her links with fraudster Peter Foster, who has served more than three years in jail for various offences.

Mrs Blair told how she had only met Foster, the boyfriend of her close friend and aide Carole Caplin, once and that she had been unaware of his criminal past.

Had she known about this, she said in her statement issued by Downing Street, she would have been "far more circumspect" in her dealings with him.

Mrs Blair, a leading QC, said Foster had negotiated on her behalf for "a couple of weeks" in the early stages of a deal to buy the £260,000 flats in a prestige development in Bristol, where the Blairs' son Euan is at university. However, she said the deal was concluded by her own financial adviser, and denied claims that Foster had worked for her in such a role.

Mrs Blair said in her statement: "Mr Foster never asked for nor received remuneration. As far as I was concerned he was simply the boyfriend of a friend who was helping me out when I was busy."

Mrs Blair said she began her property deal in late October. She added: "I had at that point never met Mr Foster or spoken to him and was unaware of the details of his past which have since become public. Clearly had I been aware I would have been far more circumspect over what appeared to be straightforwardly friendly offers of assistance from the boyfriend of a friend.

"It is correct that for a couple of weeks of the negotiations in late October/early November he helped me by talking to the property agent, making suggestions to me about the best price to secure and corresponding with me by email."

Mrs Blair said: "He was not my financial adviser. My financial adviser was and is Martin Kaye of BDO Stoy Hayward."

The original story about the flats deal was broken by Mail newspapers.

Mrs Blair's statement acknowledged the way Downing Street had responded about her links with Mr Foster had not told the whole story. She said: "If there has been any misunderstanding between the No10 press office and the media that is unfortunate and I regret that." Mrs Blair insisted that the transaction involving her Bristol property had been "properly carried out".

Both No10 and Mrs Blair insisted original allegations that she had tried to avoid stamp duty and had been prepared to use her position to try to get a discount on the property were false.

Downing Street said that for "obvious reasons of privacy and security" they had hoped to keep details of their property in Bristol away from the public domain.

The Prime Minister's-official spokesman accused Mail newspapers of a "continuing personal campaign against the Blairs". He added: "As the Mail is determined to pursue these allegations against her Mrs Blair has issued her statement."

Emails published by the Daily Mail today showed how Foster, 40, helped Mrs Blair obtain a discount totalling £69,000 on the properties.

At one stage Mrs Blair described Foster as a "star" and thanked him for his efforts on her behalf. She appears to have sent out forms relating to the flats deal after he advised her to do so. He claimed she could "relax" because his accountant would do the rest.

Earlier, No10 had claimed Foster, the former boyfriend of topless model Samantha Fox, was "not a financial adviser to the Blairs".

The emails do not suggest Mrs Blair has done anything illegal. But they cast doubt on her judgment in becoming so closely involved with a man like Foster.

Tory MP Mark Field said today there were "serious concerns that No 10 had been economical with the truth" about the original revelations. "It would have been much better if Downing Street had been entirely upfront at the earliest opportunity."

The emails show Mrs Blair had offers accepted on two flats in Bristol's Panoramic complex at £260,000 each - some £35,000 below the original £295,000 asking price. Foster claimed he beat the vendors down from a sticking point of £272,000, adding: "We weren't looking to buy the property but steal it."

He also advised Mrs Blair against doing anything "too risky" in relation to the £250,000 lower stamp duty threshold because the tax authorities were "keeping an eye" on any deals done just below this level.