Fury as Blair sacks sleaze watchdog 'for criticising ministers'

Sir Alistair Graham, long a thorn in Labour's side, was formally told last night that the Prime Minister has decided not to renew his appointment from this April.

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The move today fuelled fears that Mr Blair will seek to abolish Sir Alistair's Committee on Standards in Public Life by merging it with other bodies such as the Electoral Commission and committees on business and Lords appointments.

The committee was set up by John Major amid the sleaze scandals of the Nineties. Sir Alistair said the move proved that the Government placed a "low priority" on ethics.

Mr Blair personally intervened to order that Sir Alistair's contract should not be renewed, prompting accusations that he is exacting revenge on the man who has heavily criticised the Government's handling of rows involving John Prescott and Tessa Jowell.

Sir Alistair upset Downing Street when he declared that Mr Prescott was clearly in breach of the ministerial code for his visit to the ranch of gaming tycoon Philip Anschutz. He also waded into the row over Ms Jowell and her husband David Mills and David Blunkett's problems over his private income.

In a letter to Sir Gus O'Donnell, the head of the Civil Service, Sir Alistair was scathing about the decision not to renew his five-year contract. "This risks the perception, unfair or otherwise, that this Government places a low priority on the maintenance of the highest standards in public life," he wrote.

Sir Gus had written to the watchdog to make clear that Mr Blair was personally involved. "I've discussed the position with the PM and he has decided not to renew your appointment," Sir Gus wrote.

"In reaching this decision he has been minded of the fact that none of your predecessors have served more than one term and to ensure clarity for the future he has ensured that the chair of the committee should be appointed for a single nonrenewable term, thereby reinforcing the independence of the role."

Oliver Heald, the shadow constitutional affairs secretary, said: "It is very concerning that Britain's anti-sleaze watchdog has effectively been sacked for doing his job.

"This looks like revenge for highlighting growing electoral fraud and expressing concern over the system of party funding. I fear this is the precursor to Labour ministers abolishing this valuable watchdog altogether."