Gordon Brown faces a grilling over Labour's £600,000 "secret" donations today as he attempts to restore public faith amid a run of crises and slumping poll ratings.
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Midday GMT
Gordon Brown says he was told about the issue of political donations on Saturday. David Abrahams's money will be returned and Peter Watt's resignation was a "necessary first step".
A number of people will look into how to avoid a future recurrence, he says. A "Ms Kidd" offered a donation to Brown's leadership campaign but it was turned down, he reveals.
He says the situation with the donations was "completely unacceptable".
Brown says he does not recall meeting Abrahams and in particular does not remember discussing issues of donations with him but admits he is sure he would have met him.
The PM says "clearly there will have to be changes immediately in the way Labour does things".
The BBC's Nick Robinson asks if it is not "extraordinary" that Brown did not know about donations by Janet Kidd and Ray Ruddick, two of Abrahams's proxies, given their value.
12.10pm
Brown insists he knew "nothing" of the donations. He says he has made it clear that reform is necessary and the government was waiting for the report by Sir Hayden Phillips.
Andy Bell of Five News says it is clear throughout the Labour party there "seemed to be people who knew" about the donations.
Brown says that is what an inquiry will seek to establish. He had no knowledge of the practice until Saturday night.
Brown is asked about his attendance at NEC meetings in July or September, and also about the fact that Hilary Benn rejected a donation apparently from Abrahams and Harriet Harman accepted one.
The PM repeats that he did not know until Saturday night. He says that Abrahams's donations were improperly reported to the Electoral Commission and that that is the issue at hand.
He is asked if Harman has broken election law. Brown replies that it is for her to answer but he believes that is not the case.
Bob Roberts, from the Daily Mirror, asks if this situation makes the case for greater funding of political parties by taxpayers.
The PM refers once more to the Phillips review; Jack Straw is considering the review and then there will be recommendations.
A respite from the donations issue for Brown now as he is asked about the arrest of the British teacher in Sudan because her class named a teddy bear Muhammad.
12.15pm
The PM says she has not been charged and the UK authorities are in contact with their Sudanese counterparts.
A reporter from the London Evening Standard asks if there should be a criminal investigation into the donations.
Brown says he would welcome any investigation, he adds that he has acted swiftly to deal with the repercussions of it.
Can Harman credibly remain as chair of the party, Brown is asked.
She has made it clear she did not know what the source of the donation ultimately was, Brown replies.
A GMTV reporter asks how Brown accounts for being at 27% in the polls.
The PM says people will look at whether they are being properly protected and will see that Labour is acting quickly to deal with problems, often outside their control.
12.20pm
A reporter from Radio 1's Newsbeat asks what the loss of the child benefit data and the party donations scandal have done to trust in the prime minister.
Brown says "problems do arise for which the prime minister is not directly responsible". He says there has been no fraud relating to the loss of the data.
The PM is asked whether he thinks other donors have been doing the same as Abrahams.
The inquiry will find out, says Brown.
The PM is smiling, although it may be through gritted teeth.
Once more we are on to Harman and Brown says his intention is to get to the bottom of the matter and "change the procedures so this can never happen in the future".
Jon Snow of Channel 4 News asks how Abrahams had access to the Labour corridors of power if the only person in the party who knew he was a donor was Watt.
Brown says that Abrahams was using agents to give money to the Labour party, and the inquiry will discover how that happened.
"If the inquiry names names these names will be named," says Brown, prompting a moment of light relief.
12.25pm
The PM is asked about David Cameron's claim at the CBI conference this morning that he could change Brown's position on capital gains tax.
Brown says no decision has been made but the rate in Britain compares favourably with other countries and when Labour came to power the rate was 40%; this year's pre-budget report set it at 18%.
A Daily Telegraph reporter asks the PM if he is satisfied with the answers given by cabinet members on donations so far.
Does Harman have his full confidence?
Brown reads from Harman's press release saying she was unaware of the donor's connection with Abrahams; he accepts her word.
Amy Kellogg of Fox News asks about the Archbishop of Canterbury's recent comments that the US had lost the moral high ground since 9/11.
12.30pm
The PM says his view is that "we are making progress in Iraq".
He does not deny that Iraq has divided public opinion in Britain but there is progress, he says.
Brown is asked by the Guardian's Patrick Wintour if politicians do not have a duty to investigate whether a donor is "bona fide" - as Brown's own campaign did.
The PM says members of the public giving donations has been a feature of political life for years and Harman has done nothing wrong in accepting a donation which she believed was bona fide (of course, it now appears it was not bona fide).
Neil Patterson of Sky News asks why Brown was not told about the donations.
He repeats that the first he knew about it was on Saturday.
An Australian journalist asks if he has any advice for the new PM Kevin Rudd, prompting a hearty laugh from Brown.
The PM says it is positive that Rudd is planning to adopt Kyoto. He wishes him well and will be watching him "to learn any lessons necessary" for the UK - that last comment is accompanied by a broad smile.
Back to party funding and Brown says "we are sorting it out".
A reporter from the Kuwait News Agency asks about the Annapolis talks on Israel and the Palestinians.
12.35pm
Brown reiterates his pledge of funds to the Palestinian authorities if security is forthcoming.
The question is whether a framework can be agreed to pave the way for further talks, says Brown.
The process that can lead to final status negotiations must be begun.
The next question is about Cyclone Sidr in Bangladesh and what the humanitarian response will be.
Brown says some aid has already been provided and the government is ready to give more aid.
Martin Bright of the New Statesman asks why Peter Watt was still in his post after the cash-for-honours investigation and whether the PM is going to report him to the police.
The PM says that Watt was not held responsible during by the cash-for-honours investigation but he has done the right thing and the responsible thing by resigning over the current donations issue.
James Landale of the BBC asks how much Kidd offered to Brown's campaign and if he is going to rethink reform of party funding.
Brown does not know how much Kidd offered and blames the Tories for walking away from talks on party funding.
On to Iraq, and Brown says that gradually British forces will take a training role but he is not going to set a timetable for withdrawal.
George Parker of the Financial Times asks about Brown's vision for change, whether it has already been set out.
The PM refers to the building of new houses, "the biggest education bill for 60 years" to raise the school leaving age to 18, and the review of the NHS.
As he is wont to do he says he is trying to deliver the "aspirations" of the British people.
An Independent reporter asks about the role of nuclear power in tackling environmental challenges.
Brown says he cannot say anything firm ahead of the new year when the government will announce its response to the consultation on nuclear power.
But he says he is looking at reforming the planning system.
Robin Oakley of CNN asks if it would not be better for Brown to challenge Mugabe at the EU-Africa summit in Portugal, rather than boycott it.
The PM says he does not believe "there is anything to be gained" from dialogue with Mugabe.
But if democracy was restored the British government would contribute to the country's regeneration.
12.45pm
Israel Radio asks if Brown will become involved post-Annapolis and how he will ensure cash given to the Palestinians does not free up cash for terrorism.
He also asks whether the Oxford Union debate with David Irving and Nick Griffin should have gone ahead.
Brown says that all terrorism is wrong and that support for the Palestinian people will be subject to the ending of violence.
If there are guarantees on security Brown believes all countries in the world will be willing to help the Palestinians.
On the Oxford debate he merely says that there was a vote at the university before it went ahead.
An Italian journalist asks when a minister should take responsibility for things that have gone wrong.
12.50pm
Brown says the resignation of Watt was "not enough" and that is why he has instigated the review of donations.
The next question is on recognition of independence for Kosovo; should it be declared?
The PM says it is premature for him to give advice.
The Herald asks if Brown has full confidence in Harman: "Yes or no?"
The PM says he has confidence that the explanation she gave for accepting the donation was true. Not quite a "yes" then.
Next question is about the extradition of Andrei Lugovy, accused of the murder of Alexander Litvinenko. This has damaged Britain's relationship with Russia, the reporter says; is the UK still asking for his extradition?
Yes, says Brown. We "cannot have a situation" where an innocent person is killed in London and they cannot get the cooperation of another country in bringing the assailant to justice.
12.55pm
A Swedish radio reporter asks about how he has found being prime minister. With a smile he replies: "A new challenge every day."
A Western Morning News reporter asks the PM about whether he will follow advice from David King on GM crops and a cull of badgers.
Brown is not in a position to agree with what King advises.
The next question is on Britain's relationship with the US.
The PM says the US is Britain's most important ally.
Andy Miller of the Economist asks what distinguishes the circumstances that mean one official has to resign and another does not.
Brown says it was the procedures not being followed that led to the loss of the child benefit data.
A reporter from La Repubblica, the Italian newspaper, asks why England keep losing at football and whether they need an Italian coach, the cue for much laughter and some relief from Brown at being handed a soft question.
Brown turns the question into an endorsement of the government's efforts to get young people involved in sport and says he is "optimistic" about the sporting future of Britain - is that a yes to an Italian manager then?
Quentin Letts of the Daily Mail asks what is the percentage of Brown's confidence in Harman and whether he would rather she "jump off a cliff".
Brown replies that of course he has confidence in Harman.
A Spanish journalist asks if what happened with Abrahams is part of the legacy of his predecessor, Tony Blair, and whether the PM would have resigned if he had taken money from Abrahams.
1.05pm
In response to the second part of the question Brown says the issue "didn't arise".
He says most people would prefer a cap on political spending and some people would like a cap on donations but that has not been resolved in the UK.
Brown sways from side to side smiling as he is asked about the radicalisation of Muslims; looks as though he is just happy to move away from donations.
The government is working with faith groups to achieve "better harmony and understanding", says the PM. He believes working with communities is important.
A Portuguese journalist asks if the British government will be attending the EU-Africa summit. Brown reiterates that he will not be going.
It is not possible to sit down with Mugabe, he says, although he emphasises again that he wishes to help Zimbabwe and Zimbabweans once democracy has been established.
Back to donations: the PM is asked if it is not "abundantly clear" that Watt's donations were a secret circulating in the higher reaches of the Labour party.
Brown, once more, refers to the inquiry.
Final question, and the PM is asked whether he has asked Blair for advice. Brown says he called him on Sunday about Annapolis.
1.10pm
Another Italian journalist asks about David Miliband apparently watering down a speech on Europe after interference from the PM.
He also sneaks in a question about Afghanistan.
Brown says Afghanistan is very important and on Europe says he, like Miliband, is not in favour of a European defence force.
The last (this time Brown says it really is the last) question is on farmers.
The PM says the government has tried to do its best for farmers.
He says they have worked together to make possible a more successful farming future.
And that really was the last question of a press conference unsurprisingly dominated by the issue of Abrahams's donations to the Labour party.
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