Fox not yet out of woods after saying sorry to MPs

Mr Fox enjoyed a striking show of support from Tory Ministers and MPs in the Commons yesterday as he apologised for “allowing distinctions to be blurred between my professional responsibilities and my loyalties to a friend” but insisted national security had not been breached.

He revealed he had met his friend and former flatmate Adam Werritty during 18 overseas visits and on 22 visits to the Ministry of Defence over the past 16 months, but denied any wrongdoing and said that during private meetings the pair “did not discuss either commercial or defence matters”.

He also admitted it was wrong to meet businessman Harry Boulter, the chief executive of the Porton Capital investment fund, in Dubai without an official present in a meeting brokered by Mr Werritty.

New procedures have already been put in place to ensure Mr Werritty does not make private visits to the MoD in future, will not attend international conferences where Mr Fox is present and they will not meet socially abroad when Mr Fox is on official business.

As Labour demanded the issue be referred to the independent adviser on Ministers’ interests – amid claims Mr Fox had breached the Ministerial Code. An interim report by the MoD’s top civil servant was given to the Prime Minister, with a full report due in days.

A Downing Street spokesperson said “serious mistakes” had been made, but added: “While the Permanent Secretary’s initial conclusion is that no classified or other defence related official information was discussed with or given to Mr Werritty by the Secretary of State or the department, it is clear that much tighter procedures are needed within the department to ensure that the Ministerial Code is properly adhered to in future.

“Following these interim findings the Prime Minister has asked the Cabinet Secretary to work with the Permanent Secretary to complete the report, addressing all the remaining questions that have been raised by this issue.”

Shadow Defence Secretary Jim Murphy said: “Liam Fox refused to answer questions in the House of Commons and his hubris is a hindrance to establishing the truth. His statement raised more questions and the Prime Minister should demonstrate a commitment to transparent government.”