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Prime minister Tony Blair was advised to repay thousands of pounds in discounts which he received on designer clothes, according to newly-released official files.
Papers released to the National Archives show that No 10 officials recommended he should pay back more than ￡7,600 on items bought from designers Nicole Farhi and Paul Smith.
The discounts were negotiated by his wife Cherie’s controversial friend and style adviser, Carole Caplin, who bought clothes for Mrs Blair.
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Cherie Blair’s controversial friend and style adviser, Carole Caplin ( PA )
Ms Caplin told officials that because she bought the clothes wholesale she was able to to secure discounts of up to 60 per cent – including on items bought for Mr Blair as well.
However, officials were concerned that such large discounts would not be available to ordinary members of the public.
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According to the files, between July 2001 to December 2002 the couple spent ￡8,021.50 with one designer alone – Nicole Farhi – when the retail price would have been ￡20,855.
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It meant the total discount they received came to ￡12,8343, more than the total amount they spent.
Initially, officials advised that Mr Blair should repay the discounts he received in full – around ￡10,000 – and that Mrs Blair should pay back half the benefits she obtained – ￡28,000.
Clare Sumner, a No 10 official, wrote: “We are not arguing that anything has been done wrong, indeed nothing has. The issue is one of public perception.”
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Tony and Cherie Blair received significant discounts on designer clothes ( AFP/Getty )
However, after discussions with the cabinet secretary Sir Andrew Turnbull it was agreed that Mrs Blair did not receive any “preferential or beneficial treatment” in her role as prime minister’s wife.
It was agreed, however, that the suppliers would in future have to sign confidentiality agreements to ensure there was no incentive for them to provide goods cheaply in order to exploit the fact they the prime minister’s wife wore their clothes.
But for Mr Blair, however, officials said they believed he still should pay the full amount, advising him to write cheques for to ￡1,116 to Paul Smith and ￡6,532 to Nicole Farhi.
Ms Sumner wrote: “For you, we still think the simplest thing is to pay for your clothes in full and that Carole should be made aware of this for the future.”