Downing Street admitted yesterday that MI6 embarked on an unprecedented cover-up after it withdrew intelligence supporting the Government's dossier on Saddam Hussein's weapons of mass destruction because it was unreliable.

In an astonishing admission after the disclosure of the cover-up in yesterday's Independent, Tony Blair's official spokesman said MI6 decided not to tell the Hutton inquiry - set up to investigate the death of the government scientist David Kelly - that crucial intelligence on Saddam's chemical and biological weapons was unsound. The security services, he said, felt it was "too sensitive'' to be made public. The head of MI6, Sir Richard Dearlove, also decided not to tell Mr Blair. The Prime Minister's spokesman said Mr Blair only became aware of the withdrawal of the intelligence as a result of the inquiry by Lord Butler of Brockwell, which was delivered three days ago.

Senior sources close to last year's Hutton inquiry said they were unaware that crucial intelligence had been withdrawn, and had this been known, a number of government witnesses would have faced questions about the matter.

The inquiry began on 11 August. Giving evidence, the Prime Minister, Sir Richard Dearlove and John Scarlett, the head of the Joint Intelligence Committee, all failed to mention the withdrawal of intelligence. All three insisted that intelligence from agents in Iraq was believed to be reliable.

Downing Street insisted yesterday that the first time Mr Blair knew about the discredited intelligence was in the Butler report. And the reason Mr Scarlett had not mentioned it, when giving evidence two months after MI6 had withdrawn the intelligence, was that "the validation process was still ongoing".

Downing Street gave three reasons for not telling the Hutton inquiry: it was not relevant to the investigation into Dr Kelly's death; it was only one element in the chemical and biological weapons "picture"; and, because validation of the intelligence and its source was continuing, it was too sensitive to make public. "Lord Hutton was not misled. He saw everything that was relevant to his picture," said Mr Blair's spokesman.



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