Labour plays down revolt as sleaze row grows

LONDON, Mar 16: Allies of Britain's Tony Blair rejected suggestions today that he had lost control of his party after a revolt over flagship school reforms, even as a growing sleaze row added to the Labour leader's woes.

Blair had to rely on opposition Conservative Party votes yesterday to get his education bill past a key hurdle in parliament, despite a working majority of 69, after 52 Labour lawmakers rebelled and 25 abstained.

Analysts said the result, while not a killer blow, was damaging to Blair's ebbing authority. Ministers played down the fact he needed Conservative support to pass his reforms.

''It was a Labour bill driving forward Labour reforms to improve the education of the country,'' Home Secretary Charles Clarke told BBC Radio. ''Over three-quarters of Labour MPs (members of parliament) voted for it.'' Ministers also defended Blair and senior party figures over allegations they accepted loans from millionaire supporters in return for titles given under Britain's honours system.

Labour treasurer Jack Dromey, deputy secretary of the T&G union, has opened an inquiry into undeclared loans, saying he had been ''kept in the dark''.

''The Labour Party needs to put its house in order to restore public and party members' confidence,'' Dromey said. He plans to produce a report for the party's national executive next Tuesday.

The ''cash for peerages'' row piles pressure on Blair, whose relationship with his party has grown increasingly fractious as he struggles to push through public service reforms. Blair's authority has inevitably waned since his majority was slashed at last year's election and since he said he would not stand in the next poll, due by mid-2010, analysts said.

The fact Blair could not muster enough Labour votes to pass a bill that is central to his third term agenda, coupled with the sleaze allegations, gives more ammunition to those who want a swift handover to his expected successor, finance minister Gordon Brown.

The latest allegations follow a high-profile row over links between Culture Minister Tessa Jowell's husband and Italian Prime Minister Silvio Berlusconi.

ALL EYES ON MAY POLL

The true test for Blair will come in local elections in May when Labour followers will want to see whether he can still work the electoral magic that won him three straight terms or whether he has become a liability.

At the same time, the Conservative Party is looking resurgent under its new, youthful leader David Cameron.

The poll will be Blair's first major electoral test since last May's election when his majority was cut by more than half, partly because of anger over the Iraq war.

Since his re-election, Blair has suffered damaging defeats on anti-terrorism measures and plans to outlaw religious hatred.

He had already made concessions on the education bill, which seeks to give more freedom to schools to run their own affairs, to cut the number of rebels from around 100.

However Blair appears undeterred, keen to stay in the job and determined to press through reforms to health and education.

''I think the reforms should go on and on. I personally hope Tony Blair leads that for as long as possible,'' said Clarke.

REUTERS