Gordon Brown accused of Stephen Byers Lobbygate ‘cover-up’

Gordon Brown today refused to order a government inquiry into claims that Stephen Byers made secret deals with ministers for companies.

However, the Prime Minister was immediately accused of a "cover-up" by the Tories who had called for an investigation by Cabinet Secretary Sir Gus O'Donnell.

Both the departments for transport and business denied they were influenced by alleged interventions by Mr Byers. Mr Brown's official spokesman said: "The Prime Minister has seen the statements from the departments and is satisfied that there is no impropriety that has been carried out."

Mr Brown also supported Mr Byers's decision to refer himself to the parliamentary sleaze watchdog.

The former transport secretary stressed he believes he will be cleared of any wrongdoing. The Tories, though, responded angrily to Mr Brown rejecting their demands for an inquiry. "It's a cover-up," said a spokesman.

After referring himself to the parliamentary commissioner for standards John Lyon, Mr Byers said: "I am confident that (Mr Lyon) will confirm that I have complied with the MPs' code of conduct."

The refusal to hold an inquiry was challenged this afternoon by a senior Labour MP. Tony Wright, the chairman of the Public Administration Committee, said it would be appropriate for Sir Gus to look into the claims.

Despite Downing Street's refusal to call an internal probe, Cabinet minister Ben Bradshaw today suggested that the Government would act.

He told Radio 2: "The Cabinet Secretary as I understand it has ordered an inquiry and it will come out in that. But the denials from the departments were pretty categorical over the weekend."

Former transport secretary Mr Byers, former health secretary Patricia Hewitt and former defence secretary Geoff Hoon were all caught in a "sting" operation by Channel 4's Dispatches and The Sunday Times. They were interviewed by an undercover reporter posing as the representative of a fictitious US lobbying firm. They all deny wrongdoing.

Among Mr Byers's boasts was that he had come to a secret deal with Transport Secretary Lord Adonis over the termination of the National Express rail franchise for the East Coast mainline and that Business Secretary Lord Mandelson had got regulations on food labelling amended after he intervened on behalf of Tesco. Both peers and the companies denied the claims.

Mr Byers is said to have been asking for up to £5,000 a day. But the following day he reportedly retracted his claims — insisting he had "never lobbied ministers on behalf of commercial interests".

Ms Hewitt said she "rejected" the suggestion that she helped obtain a key seat on a Government advisory group for a client paying her £3,000 a day. Mr Hoon was reported to have wanted a £3,000 a day fee for work.

However, he subsequently said: "At no stage did I offer, nor would I attempt to, sell confidential or privileged information arising from my time in government." He also said he was seeking work for after he stood down.

Commons Leader Harriet Harman was today making an emergency statement on lobbying by MPs.