Commenting on Lord Woolf's report on business practices at BAE Systems, in which the firm admitted it had previously failed to 'pay sufficient attention' to ethical standards, Liberal Democrat Leader Nick Clegg said:

"Lord Woolf's recommendations are of course welcome, but the report is essentially a sideshow to the outstanding allegations of corruption in arms deals involving BAE, Saudi Arabia, and the British Government.

"The publication of this report in no way lets Gordon Brown off the hook.

"The Serious Fraud Office must reopen their investigation into corruption in the Al-Yamamah deal without delay, and there must be an inquiry into why the investigation was halted in the first place.

"This is the only way for the Government to put an end to allegations which continue to undermine Britain's credibility and reputation in the world."