Sleaze claims worried Blair aides, files show

Aides to Tony Blair feared his government was losing "moral authority" just a few months after winning power in 1997, amid a slew of claims about "sleaze", newly-released files reveal.

The most pressing of concerns were questions over the £650,000 refurbishment of the official flat for the new Lord Chancellor Derry Irvine.

Lord Irvine had been Mr Blair's pupil master when he was a trainee barrister.

The papers show how the Labour PM set out a counter-attack to address claims.

The National Archives files reveal that just days after the Labour Party's election victory, Lord Irvine was already planning the renovation of his official residence.

He wanted it to be as close to the original designs as possible. Advised by historical experts, he selected furniture, fittings and wallpaper designed by Augustus Pugin. These had to be specially made or printed and were extremely expensive.

When the cost leaked out, the government faced a raft of criticism from the opposition and the press.

In February 1998, aides Jonathan Powell and Alastair Campbell tried to develop a strategy to deal with the scrutiny. They set it out in a memo entitled "Derry's Bed".

Newspapers had reported Lord Irvine had commissioned two handmade beds for £16,000. The cost was greater - at £23,000. No 10 had managed to keep this out of the press so far, but it was likely to come out.

The two aides suggested various responses, including an apology from Lord Irvine. They also put forward "defences", such as pointing out that Mrs Thatcher's restoration of 10 Downing Street had cost £1.2m.

In a handwritten note across the top of the file, it looks like Mr Blair has commented: "We have to be more robust about these things".

Another aide, Anji Hunter, had warned that the government was "losing moral authority by the second", thanks to the "sleaze" factor.

As well as the lord chancellor's renovations, there had been questions about Foreign Secretary Robin Cook taking his partner on an official trip, and concerns over stories about blind trusts used by senior Labour members.

One aide said the real problem was that ex-ministers knew exactly what questions to ask - "and we are being flat-footed in answering them".

The prime minister agreed, the papers show, writing: "We need to stop it".

He set out a counter-attack to reveal the previous government's spending on trips, their party spending on receptions and refreshments.

Mr Blair wrote that this could be used as a strategy to dispel accusations his administration was the "same" as the Tories, the files reveal.