Chris Grayling
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Chris Grayling on Liam Fox and Adam Werritty 'mistake'

Chris Grayling said Liam Fox blurred the lines of friendship over his links to Adam Werritty but praised his friend for admitting a mistake and said: "it has not happened often enough".

The employment minister said: "Liam has been wise enough and smart enough to stand up and say OK, I've got it wrong, I've made a mistake".

But Mr Grayling, who managed Dr Fox's failed Conservative leadership campaign in 2005, refused to be drawn on whether the defence secretary should step down if he was found to have breached the code.

Shadow Defence Minister Kevan Jones offered Labour's view on the Fox-Werritty links.

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