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A damning report has savaged "decades of failure" that saw Westminster's establishment turn a "blind eye" to repeated allegations of child sex abuse.

After a major public probe, the Independent Inquiry on Child Sexual Abuse today savaged politicians and officials in the 1970s, 1980s and even later for valuing their colleagues' reputations "higher than the fate of children".

Ex-Liberal Party leader Lord Steel, 81, who failed to act on allegations about fellow MP Cyril Smith, is accused by the inquiry of an "abdication of responsibility" - while a Tory MP was knighted despite rumours known by Margaret Thatcher.

Elsewhere the report said the National Council for Civil Liberties gave "foolish and misguided support" to the Paedophile Information Exchange, whose members included child abusers.

However, today's 190-page report did find there was no evidence of an "organised network" of paedophiles within the government, following false claims by fantasist Carl Beech who was jailed last year for perverting the course of justice.

The long-awaited investigation into historical allegations against MPs, peers and civil servants in Westminster found political institutions "significantly failed in their responses to allegations of child sexual abuse".

It comes almost a year to the day since Prime Minister Boris Johnson said police spending on child sexual abuse investigations was "spaffed up a wall".

(Image: PA)

The report said Tory chiefs knew for years of allegations about Conservative MP Sir Peter Morrison, who died in 1995 - but did not pass them to police.

The report said "senior officials" in the party were aware of allegations in the 1980s that Sir Peter had been caught by police molesting a 15-year-old boy on a train at Crewe.

A Conservative agent informed a staff member at MI5 that the MP had "a penchant for small boys".

But despite the inquiry hearing even Margaret Thatcher was aware of rumours, he became her top aide in 1990 and was knighted in 1991.

The report said it was unclear whether the Prime Minister was told Morrison was gay - which was legal - or had a sexual interest in children, which was illegal.

Meanwhile the inquiry has directly accused Lord Steel, the former Liberal Party leader, of an "abdication of responsibility" for failing to act on allegations about late MP Sir Cyril Smith's sexual interest in children.

Smith was investigated by police in 1969 over claims he sexually abused teenage boys at a hostel in Rochdale. Smith admitted he had acted as the boys claimed. Yet police decided not to prosecute.

Lord Steel told the inquiry last year how he failed to pass on allegations against Sir Cyril - who died in 2010 - even though he believed them to be true, because it was "past history".

He later recommended Smith for a knighthood.

Lord Steel said today he would quit the Lib Dems and House of Lords but admitted no wrongdoing. He said: "Knowing all I know now, I condemn Cyril Smith's actions towards children. Not having secured a parliamentary scalp, I fear that I have been made a proxy for Cyril Smith."

(Image: WPA Pool)

(Image: PA)

In a third case Victor Montagu, the former MP for South Dorset and 10th Earl of Sandwich who died in 1995, was let off with a caution after a 10-year-old boy alleged he had indecently assaulted him in 1972.

The police report at the time described the boy as "a simply lad, perhaps to be pitied".

Montagu’s son Robert told the inquiry he was sexually abused by his father between the ages of six-and-a-half and 11, including an occasion when he was raped. He told the inquiry the decision not to prosecute the 1972 case was “entirely wrong and very indicative of the attitude towards people in public positions”.

A statement by the Inquiry said today: "These are examples of a political culture which values its reputation far higher than the fate of the children involved."

Inquiry chair Prof Alexis Jay said: "It is clear to see that Westminster institutions have repeatedly failed to deal with allegations of child sexual abuse, from turning a blind eye to actively shielding abusers.

"A consistent pattern emerged of failures to put the welfare of children above political status although we found no evidence of an organised network of paedophiles within government.

"We hope this report and its recommendations will lead political institutions to prioritise the needs and safety of vulnerable children."

(Image: PA)

The inquiry added in a statement: "During three weeks of public hearings last year, the Inquiry heard from survivors, whistleblowers, cabinet ministers, MPs and police officers among others.

"There has clearly been a significant problem with deference towards people of public prominence, from the Whips’ offices to the police and prosecutors, although the investigation found no evidence of an organised paedophile network at the heart of government.

"For example, in the 1970s and 1980s, MPs including Sir Cyril Smith and Sir Peter Morrison were known to be active in their sexual interest in children, but were protected from prosecution.

"Giving evidence, former Liberal Party leader Lord Steel said that because allegations against Smith had arisen before he joined the party, he saw 'no reason, or no locus to go back to [it]'.

"This failure to recognise the risks was an abdication of responsibility, and the fact the offences were non-recent was irrelevant."

The Inquiry also investigated the Paedophile Information Exchange (PIE), which campaigned in the 1970s to lower the age of consent, a statement said.

The Inqury added: "A number of its members sexually abused children, including Sir Peter Hayman, a former High Commissioner to Canada.

"The report concludes that PIE was given foolish and misguided support for several years by organisations who should have known better, such as the National Council for Civil Liberties and the Albany Trust."

A Lib Dem spokeswoman said: “Cyril Smith’s acts were vile and repugnant. We have nothing but sympathy for those whose lives he ruined.

“The Liberal Democrats take the issue of vigilance and safeguarding seriously and constantly work to improve our party processes, including the introduction of a new complaints process last year.

“This Inquiry has set out a list of important recommendations which all institutions should take seriously and seek to learn from.

“Following the publication of the report, David Steel has resigned from the party and retired from public life.”