Tories call for removal of Levy

The tories today demanded the removal of Lord Levy as a fundraiser for Tony Blair after a series of fresh claims about the peer's business affairs.

Deputy Tory leader Michael Ancram said Lord Levy's efforts to drum up cash for Labour were incompatible with his role as the Prime Minister's Middle East envoy and called for him to "relinquish all party fundraising and financial responsibilities". Lord Levy faced claims he had received £250,000 from the head of an Australian corporation seeking to develop shopping centres across Britain.

Meanwhile, Mr Blair hit back against a raft of other sleaze and secrecy allegations. Downing Street claimed the Prime Minister had done nothing wrong by backing a potential jet fighter deal involving Labour donor BAe Systems and the Czech government on his recent visit to Prague. And No 10 cited "national security reasons" for the secrecy surrounding a £32million contract with British drugs firm PowderJect Pharmaceuticals to supply smallpox vaccines. Its chief executive, Paul Drayson, donated £50,000 to Labour last year.

In further moves, Labour has been embarrassed by the reopening of the 1997 Bernie Ecclestone saga. Formula One chiefs made it clear they had not sought an exemption from the tobacco ban.