Source was credible and senior, says BBC

The BBC came out fighting yesterday after Alastair Campbell's demand for an apology aggravated its long-running dispute with the Government over coverage of Iraq.

Mr Campbell, Tony Blair's director of communications, accused the BBC and its defence correspondent, Andrew Gilligan, of lying.

Mr Gilligan was singled out, in particular for some of his reports from Baghdad during the war when he infuriated ministers by suggesting that Iraqis were more frightened of looting than of Saddam Hussein's dictatorship.

In April, the Labour MP Chris Bryant accused him of getting "carried away by his own rhetoric", the cabinet minister John Reid questioned Mr Gilligan's sources and No 10's daily press briefings criticised his alleged "inaccuracies". Mr Reid, as Labour Party chairman, also accused the BBC's political editor, Andrew Marr, of working for "Baghdad Radio". Mr Campbell was infuriated when Mr Gilligan quoted an unnamed source alleging that he had wanted the dossier "sexed up" with a reference to Saddam's ability to launch a biological attack within 45 minutes. The BBC has steadfastly defended its journalists. In a statement yesterday, the corporation said it did not have anything to apologise for. "We regret that Alastair Campbell has chosen to accuse Andrew Gilligan and the BBC of lying. We have always been clear in our reporting.

"Our senior and credible source told us that he and others in the intelligence community were unhappy that real intelligence based on a single source was given undue prominence in the dossier of September 2002. Subsequently a number of other journalists have been similarly briefed. The context was one of general disquiet about the Government's presentation expressed to us by other members of the intelligence community."