The defence secretary denies allegations that he lied about having a male house guest during a burglary, as the prime minister once more gives him his support.
Liam Fox confirmed that a friend was staying at his home during a burglary in April 2010 while his wife was away, adding that he had never tried to claim otherwise.
At prime minister’s question time, David Cameron reiterated his support for the defence secretary in the face of taunting by the leader of the opposition.
Mr Cameron said he would make a decision once the investigation had been completed. He told MPs: “The ministerial code is very clear that in the end it is for the prime minister to decide whether someone keeps their job or not.
“In the case of the defence secretary, I think it is very important that when the leader of the opposition has called for an inquiry by the cabinet secretary, when I have established an inquiry by the cabinet secretary, let us allow the cabinet secretary to do his work to establish the facts, then a decision can be made.”
Ed Miliband snapped: “On the day of the worst unemployment figures in 17 years, the prime minister is fighting to save the job of the Defence Secretary while he is doing nothing to save the jobs of hundreds of thousands of people up and down this country.
“It’s one rule if you are in the Cabinet, it’s another rule for everyone else.”
As concerns about Dr Fox’s relationship with best friend and lobbyist Adam Werritty continue to be investigated, earlier the defence secretary was called to answer claims in the Sun newspaper that he previously reported being alone at the time of the burglary.
“As I told the police at the time, a friend was staying in the guest room,” Dr Fox said in a statement.
“My wife was stranded in Hong Kong due to the ash cloud. For the sake of clarity, it wasn’t Adam Werritty.
“I was a victim of a violent crime and I’m appalled at being portrayed as having something to hide. We’re trying to establish why the media were given the impression I was alone.”
When asked about rumours that Dr Fox is gay – allegations that Dr Fox called “smears” in a 2005 interview – Employment Minister Chris Grayling said that “the gossip is certainly circulating”.
“If you look around the Westminster village you will find all kinds of wild gossip about all kinds of individuals in all parties. That doesn’t mean they are not good at their jobs,” he said.
“Liam and his wife – they’ve always struck me as being a very happily married couple. I thought we had got past the point in politics where we needed to worry about people’s private lives. The question is, is somebody doing an important and capable job?”
In his blog, Channel 4 News Political Editor Gary Gibbon wonders what we should read into the involvement of top civil servant Sir Gus O’Donnell in the investigation into Liam Fox’s behaviour:
“Sir Philip Mawer’s track record is still too slow for comfort in No. 10 and giving the whole thing to Gus O’Donnell means they can keep in touch with the progress of the report.
If a startling fact comes to light it will be on the PM’s desk pronto and Liam Fox’s mobile will be lighting up.”
The defence secretary apologised to the House of Commons for blurring the line between his professional and personal life, in relation to his friendship with Adam Werritty, who styled himself as Dr Fox’s adviser.
Mr Werritty was questioned by senior civil servants yesterday as part of an inquiry to establish how he funded 18 overseas meetings with the defence secretary.
Read more: the original Channel 4 News report on Liam Fox’s burglary in 2010.