Blair was 'unaware' wife used blind trust to buy flats

Downing Street's attempts to draw a line under the row over Cherie Blair's purchase of two flats with the help of a convicted fraudster received a setback last night after it emerged that the Prime Minister's blind trust was used to buy them.

Number 10 sought to limit damage to Tony Blair's reputation by suggesting he was unaware that his wife had accessed the trust to buy a flat for their son, and a neighbouring property, as an investment.

Tax experts questioned whether the rules governing the trust, set up to avoid a conflict of interest between the Prime Minister's investments and policy decisions, had been broken when it was accessed.

Downing Street was also forced to deny that the official code governing the conduct of ministers had been breached.

As the first public tensions emerged between Alastair Campbell, the Prime Minister's director of communications, and Mrs Blair over the handling of the affair, a committee of MPs indicated that it planned to investigate Downing Street's handling of the matter.

The House of Commons Public Administration Select Committee will examine the accountability of Downing Street and that of the Cabinet Office in a forthcoming report. A spokesman said the committee was concerned that its calls for a review of the government press machine had been ignored. He said MPs would expect claims that the press had been misled over Peter Foster's involvement with Mrs Blair would be investigated.