Fox Fallout: Labour Calls For Wider Inquiry

Labour has called for a wider inquiry into the conduct of ministers following the resignation of Liam Fox.

The former Defence Secetary's position became impossible after it emerged he had approached a venture capitalist for a donation to fund the work of his close friend and unofficial adviser Adam Werritty.

The 34-year-old, who was Dr Fox's best man, had no official role at the Ministry of Defence (MoD) or with the Conservative Party but appeared to be effectively acting as an aide to him.

Labour ministers have insisted the inquiry into the personal and professional dealings of Dr Fox should continue despite his resignation.

An interim report earlier this week by MoD Permanent Secretary Ursula Brennan disclosed Mr Werritty had met Dr Fox 22 times at the department and joined him on 18 overseas trips since he came to office last year.

In his resignation letter to Prime Minister David Cameron , Dr Fox accepted he had allowed the distinction between his personal interests and Government activities to become "blurred".

Despite this, new Defence Secretary Phillip Hammond praised his predecessor's work in the post, saying he had "done a great job".

Mr Hammond added he had "always been a huge admirer of the Armed Forces".

"I look forward to working with them," he said. "I will do everything in my power to justify the trust the Prime Minister has put in me by offering this position."

Justine Greening enters the Cabinet to take Mr Hammond's place as Transport Secretary.

Mr Cameron, who has lost his first Conservative Cabinet minister, also praised the "superb job" Dr Fox had done, but added he understood his reasons for stepping down.

Reports suggest the PM had been prepared to let Dr Fox continue in his role until an inquiry by the Cabinet Secretary was complete, when he planned to make his decision.

But Dr Fox's decision to step down came amid reports that Mr Werritty's jet-set lifestyle following his friend around the world was funded by a company bankrolled by wealthy Tory backers.

Prominent venture capitalist Jon Moulton claimed he had been approached by Dr Fox following last year's General Election.

He said he had been asked to provide funds for Pargav, a not-for-profit company set up by Mr Werritty.

Cabinet Secretary Sir Gus O'Donnell is to report on his inquiry into Dr Fox's links with Mr Werritty next week.

He is expected to conclude the politician did breach the Ministerial Code repeatedly, says Sky's Glen Oglaza.

"But the opposition wants greater clarity," Oglaza added.

"Was there any threat to national security and did those people paying for Adam Werritty benefit from his access to the Defence Secretary?"

Shadow defence secretary Jim Murphy told Sky News: "I think there are big questions to answer for David Cameron, the Conservative Party and other Government ministers.

"We haven't even scratched the surface.

"Throughout these events I haven't called for Liam Fox's resignation but just the full truth.

"Governments must have rules and ministers must have standards. Liam Fox fell foul of the standards and he broke the rules.

"It was clear early on that he had breached the Ministerial Code."