Blair apologises for mistakes that led to A-levels crisis

Tony Blair apologised yesterday for the fiasco over A-levels as he reluctantly admitted that the Government should share some of the responsibility for the crisis.

The Prime Minister was thrown on to the defensive during a press conference in Blackpool at the close of the Labour conference when he said he was "sorry" for the problems facing students but initially declined to apologise for the mistakes.

Under further questioning, Mr Blair denied he was showing complacency over the affair and finally admitted: "Of course, as ever, responsibility always in the end rests with the Government." He added: "Of course I'm sorry, I'm not just sorry for those students that have been put in this position, I'm sorry that this situation has ever arisen."

Mr Blair insisted the number of people actually affected by the regrading was likely to be "far smaller" than the figures being discussed in the media, and that overall student performance in a wide range of exams was better now than at any time. He also pointed out that the vast bulk of the problems had occurred within one examining board, OCR.

He ruled out a return to full-scale maintenance grants for university students when the Government's long-awaited review is concluded in the next few months. "We will never go back to the old system, because it can't be afforded. I think everyone recognises that there is going to have to be a balance of contributions between student and state," he said.

Mr Blair conceded that the Government had not resolved a dispute between the Chancellor, Gordon Brown, and the Secretary of State for Health, Alan Milburn, over whether hospitals that win more freedom from Whitehall should be allowed to borrow money on top of the Treasury's spending limits.

Allies of both ministers are claiming they have Mr Blair's support but yesterday he steered a middle course between them, saying both the Department of Health and the Treasury had a legitimate view. "These are issues that are going through the normal process of government," he said. "They are not really issues of ideology at all, they are issues of practicality. The end product is what is important."

Earlier, the Prime Minister was upbeat on British membership of the euro, saying that joining would give the country more influence as the European Union took vital decisions about its future over the next few years. He told BBC Radio 4's Today programme he believed "passionately" it was Britain's "destiny" to be at the centre of Europe but insisted the economics had to be right.

"What I'm really saying to people is don't hold back for political reasons," he said. "I think it is important for Britain to be a central and leading player in Europe. However, we can't do the euro unless it is right for the British economy."