London - The British Tory leader, Mr William Hague, yesterday accused Labour of "hypocrisy and arrogance" over the "cash-for-contacts" allegations, which he claimed revealed "a culture of cronyism at the heart of the government".
He called on the Prime Minister, Mr Blair, immediately to suspend those named in the Observer newspaper's investigation, saying that their alleged behaviour was "totally unacceptable to the entire population of this country".
He linked the affair with other controversies in which Labour has become embroiled since taking office.
Meanwhile the Observer produced evidence to back its expose, as it attempted to wrest the initiative from Downing Street following a frantic day of Labour spin-doctoring. Responding to requests to provide proof a that a 10 Downing Street policy adviser, Mr Roger Liddle, and a lobbyist, Mr Derek Draper, conspired to offer a business access to ministers and sensitive information, it issued two, sworn affidavits to back its claims.
Although the newspaper admits it did not have a record of key conversations between Mr Liddle and its journalist Gregory Palast, it believes it has enough evidence to defend its story.