Blears will pay tax on sale of home

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Brandishing a cheque for the amount which she said she would be sending to the Inland Revenue, she said: "I've heard absolutely the outrage and the anger the public feel about what has been going on."

The Communities Secretary avoided paying the tax on the sale of a property in Kennington, south London, which she had designated her second home by telling HM Revenue and Customs it was her primary residence.

Trust between politicians and the public is essential in a democracy, she said, adding: "I'm doing this really to see what can I do to try to get those first steps to rebuild this trust.

"I see it's not enough to say I complied with the rules because people just don't accept that.

"It affected me personally, what people said in Salford where I and my family live."

Challenged over the practise of flipping, she said she was "forced" to name her constituency address as her second home.

"The only reason that my Salford home was designated my second home was at the insistence of the fees office, who said that when you become a minister you live in London."