No 10 refuses to say whether Boris Johnson has had contact with Richard Desmond while PM

Senior source insists no-one in 10 Downing Street discussed controversial planning application with property developer

Labour are demanding that Boris Johnson "come clean" about his contacts with Richard Desmond, after a senior Downing Street source refused three times to say whether the prime minister had met or spoken with the billionaire property developer, amid continuing controversy over a disputed planning application.

Government links with the billionaire have come under intense scrutiny after communities secretary Robert Jenrick admitted that his decision to overturn the recommendations of a local council and planning inspector to give the go-ahead for a 1,500-property development in east London was unlawful.

Now Mr Jenrick's Labour shadow, Steve Reed, has tabled parliamentary questions demanding the disclosure of any meetings with the PM and called for a formal investigation by the head of the civil service, cabinet secretary Sir Mark Sedwill.

Asked three times directly at a Westminster media briefing whether the PM had been in contact with Mr Desmond since entering No 10 last July, the source said only: "No-one at No 10 has discussed this application with Mr Desmond and No 10 has had no involvement with the Secretary of State's appeal decision."

The source said he had "no detail" on any contacts with Desmond.

And asked whether the PM's aide Sir Eddie Lister had been in touch with the billionaire developer, he simply repeated the same line. Lister was Mr Johnson's planning chief when he approved a smaller scheme on the same site as London mayor. Mr Johnson is reported to have met Mr Desmond three times before the approval of the 700-home plan.

In the House of Commons earlier, Mr Johnson came under pressure to publish correspondence between Mr Jenrick and Mr Desmond about the former printworks site at Westferry on the Isle of Dogs at the centre of what Labour has branded a "cash for favours" row.

Mr Jenrick revealed on Monday that the letters have been handed over to Sedwill.

But Downing Street insists that this is merely in order to allow Sir Mark to answer letters he has received about the controversy and does not imply a formal investigation is under way.

Mr Jenrick approved the Westferry application, which was previously rejected by Tower Hamlets Council, the day before the introduction of a new community levy which would have cost Mr Desmond’s Northern & Shell an additional £40 million.

He has also come under criticism after it emerged Mr Desmond raised the issue with him at a Conservative fundraising dinner in November and donated £12,000 to the Tories two weeks after planning permission was granted.

As the council pressed for Mr Jenrick to publish his correspondence, the housing secretary accepted that his decision had been unlawful, quashed it and handed it over to another minister to determine.

Robert Jenrick (Reuters)

Labour has called for an inquiry to clear up the “bad smell” over the decision.

Shadow communities secretary Mr Reed said: “This murky affair threatens to engulf 10 Downing Street. It’s not just the housing secretary that needs to come clean about the decisions he has taken, it’s the prime minister too.

“Robert Jenrick’s unlawful, biased decision that saved Desmond tens of millions of pounds was seeded in the prime minister’s approval of this application while he was Mayor of London, when he was wined and dined by Desmond in five star hotels across London.

“This scandal reaches right inside 10 Downing Street given the prime minister’s relationship with Richard Desmond. He must now come clean about when he and his advisers met Desmond since taking office and must ask the cabinet secretary to launch a formal investigation into any breaches of the Ministerial Code to show the Conservatives have not been accepting cash for favours.”

Mr Johnson denied that he or any of his officials had any correspondence relating to the application.He told MPs that Mr Jenrick would respond to any concerns “if there is anything to be said”.

At prime minister’s questions, Labour MP Christian Matheson asked him: “The prime minister has previously stated to the House that he had no correspondence or discussions with (Housing Secretary Robert Jenrick) about the Westferry Printworks application.

“Will he now also confirm that none of his officials or advisers also had such correspondence or discussions with (Mr Jenrick) or his officials and advisers and will the prime minister undertake to publish all correspondence relating to this matter when (Mr Jenrick) reports?”

Mr Johnson responded: “I certainly had no correspondence about this matter myself and nor, as far as I’m aware, did any of my officials, but if there is anything to be said I know that, I think, (Mr Matheson) has written to (Mr Jenrick) and he will be writing back.”

On Monday, Mr Jenrick told MPs he had acted in “good faith” and “within the rules” in backing the plan.