Brown rejects lobbying row inquiry

The Prime Minister accepted assurances from the permanent secretaries of three Whitehall Departments that there had been "no improper influence" on Ministerial decisions.

It came ahead of the Channel 4's Dispatches programme last night which broadcast footage of a "sting" operation in which a number of MPs, including former Ministers Stephen Byers, Patricia Hewitt and Geoff Hoon, were secretly filmed in discussion with an undercover reporter posing as the representative of a fictitious US lobbying firm.

The Tories denounced the Prime Minister's decision not to launch an official inquiry as "outrageous", and Tory chairman Eric Pickles said there appeared to be "a cover-up at the heart of Government".

Mr Byers, describing himself as a "cab for hire", apparently requested 5,000 a day and boasted of secret deals with Ministers over a rail franchise contract and food labelling on behalf of private companies.

Ms Hewitt and Mr Hoon were filmed suggesting they would charge 3,000 a day for their services. Both have since denied any wrongdoing and insisted they had not breached Parliamentary rules.

Mr Byers, who has held major Cabinet portfolios including trade and transport, later retracted his claims and yesterday referred himself to the Parliamentary Standards Commissioner John Lyon for an inquiry into his conduct.

The MP, who is standing down at the General Election, said he was "confident" Mr Lyon would clear him of breaching the Westminster code of conduct.

His claim to have lobbied successfully for National Express over its East Coast mainline rail franchise was yesterday dismissed as "pure fantasy" by Transport Secretary Lord Adonis.

Lord Adonis told the House of Lords he had a "brief conversation" with Mr Byers last year about the company's threat to default on its franchise but said there was "no truth whatsoever" in suggestions that he changed his policy as a result.

Leader of the Commons Harriet Harman said the heads of three Whitehall Departments had looked into claims raised.

"They have assured the Cabinet Secretary (Sir Gus O'Donnell) that they are satisfied that there has been no improper influence on Government policy or ministerial decisions," Ms Harman told the Commons.

She confirmed Government plans for a legally enforceable register on which lobbyists would have to name their clients.

A Cabinet Office spokesman said Sir Gus O'Donnell took allegations of impropriety "very seriously".

"When he was made aware of the recent claims in the Press, he asked the relevant permanent secretaries to examine the evidence and assure themselves that there was no question of impropriety by current Ministers or officials," said the spokesman.

"As their statements show, they have looked into these matters and are confident there has been no improper influence."

Downing Street said Mr Brown was satisfied with the assurances and saw "no need" for an inquiry.

But Mr Pickles said: "It is outrageous that the Prime Minister has ruled out an investigation into these extremely serious allegations before the programme containing them has even been broadcast.

"People have the right to know whether senior Cabinet ministers like Lord Mandelson and Lord Adonis have been complicit in the scandal."

Mr Pickles said voters would wonder what Mr Brown "has to hide", adding: "This looks increasingly like a cover-up at the heart of Government."