http://www.guardian.co.uk/politics/2009/apr/12/labour-conservatives-smear-emails• Conservative leader is 'furious'
• Damian McBride quit over emails to blogger Derek Draper
• Charles Clarke says Draper's position 'should be looked at'
David Cameron is demanding a personal apology from Gordon Brown over emails sent by a senior Downing Street adviser proposing a smear campaign against senior Tories.
Damian McBride, one of the prime minister's closest advisers, quit over his email exchange with the Labour blogger Derek Draper in which the two discussed setting up a website to publish scurrilous allegations about opponents, including the Conservative party leader, David Cameron, and the shadow chancellor, George Osborne. The idea was still being actively discussed until a fortnight ago, the Observer has learned.
A Tory spokeswoman said Cameron wanted a personal apology from the prime minister. "David Cameron is furious about this... Gordon Brown owes an apology and he should give a guarantee that this will never happen agian. Damian McBride and Derek Draper should not have anything to do with the Labour party again."
As the government scrambled to limit the political damage, the cabinet office minister, Tom Watson, who was said to have been copied in on the emails, denied any involvement in the attempts at character assassination.
"I do not in any way condone the content of the email conversation – indeed I regard it as completely inappropriate," he said in a statement.
In a mea culpa on LabourList, a website for grassroots Labour supporters, Draper said of the emails: "They were destined for the trash can. But we should never really have considered the idea and I am sorry we did. We got ourselves drawn into the most negative part of the blogosphere when we should have been concentrating exclusively on the more positive aspects as a model for LabourList."
As Tories demanded a personal apology from the prime minister, the former home secretary Charles Clarke said the position of Draper should be "looked at" along with that of Charlie Whelan, once a key Brown adviser, who was copied in on the email exchange.
Clarke told Sky News: "I think there had been a pattern of behaviour with Damian over a long period, and I am glad that the prime minister has been decisive and got rid of him yesterday when this evidence came into the open.
"I think it is the case that Charlie Whelan and Derek Draper have been involved in this particular set of emails and their positions need to be looked at."
Clarke said the Conservatives, too, needed to drive the "black arts" out of politics.
"You have got to look at the fact that David Cameron took on Andy Coulson, the former editor of the News of the World, who was responsible for bugging the Royals illegally, to be his key media adviser," he said. "So I think it is a question across politics."
One of the smears was the false rumour that Cameron suffers from an embarrassing health problem. In another smear on George Osborne, the two claim the shadow chancellor's ex-girlfriend had photographs from his university days variously showing him dressed in women's underwear and with his face blacked up.
Tom Watson, the Cabinet Office minister, was also facing questions after it emerged that McBride referred in one of the emails to Watson "looking at other stories for LabourList", Draper's website. Downing Street sources insisted Watson had been discussing an entirely separate story about Labour party staffing to be posted on Draper's conventional website, rather than being involved in the secret gossip project known as RedRag.
Brown yesterday moved rapidly to distance himself from the affair, saying there was "no place in politics for the dissemination or publication of material of this kind". Downing Street insisted that neither the prime minister "nor anybody else in Downing Street" knew about the emails.
Senior Tories have demanded a public apology and assurances that Watson was not involved in dirty tricks, while the shadow home secretary, Chris Grayling, accused Downing Street of descending "into the gutter".
Stories proposed by the two men in their emails include false rumours that David Cameron had an embarrassing medical condition, suggestions that George Osborne took drugs with a prostitute – an old allegation in the public domain that Osborne has flatly denied – and a final allegation involving the Tory backbencher Nadine Dorries and a fellow MP which the Observer understands is without foundation. Another supposed story involved a Tory MP allegedly getting publicity for a firm run by his partner. There is no evidence that any of the claims are true.
Dorries said yesterday that she had consulted a lawyer and was prepared to sue. "I am incensed. I wonder how Gordon Brown would feel if a Conservative Central Office employee sent emails with slanderous 100% lies about Sarah Brown?" she said.
When the existence of the emails emerged on Friday, Downing Street dismissed them as "juvenile and inappropriate", the result of two friends messing around with a subsequently abandoned idea for a gossipy blog rivalling that of Guido Fawkes, the Westminster blogger whose real name is Paul Staines.
In a statement last night, McBride said he was "shocked and appalled" that Staines had obtained the emails and handed them to newspapers, insisting that he and Draper had already decided "Derek should not take his online efforts down to the level of Guido Fawkes" and that their ideas would not be used. Draper said yesterday McBride had paid a "high price" for an idea that never happened.
But RedRag was registered and set up last November, and while the leaked emails date from January, the Observer understands the plan was only placed on ice this month. McBride's emails even set out the format in which the stories could be written up, suggesting pictures to accompany them.
Senior Tories are particularly furious that Samantha Cameron and Frances Osborne, the wives of the leader and shadow chancellor respectively, are believed to have been targeted. McBride confessed in the emails that most of the stories were "gossipy and intended to destabilised the Tories", according to the News of World, and admitted using "a bit of poetic licence".
The plan is understood to have been discussed with at least two other people including Brown's former spin doctor Charlie Whelan.
Draper suggested last night that his computer may have been hacked to get the emails. No breach of security at Downing Street was found.