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HOME Secretary Theresa May insists she does not regret appointing Baroness Butler-Sloss to chair an inquiry into allegations of historical child sex abuse by establishment figures, after the former judge stepped down following controversy over her selection.

Pressure had been mounting on Butler-Sloss ever since her appointment last Tuesday.

Critics had warned of a potential conflict of interest as the investigation was likely to look into the role of her late brother, Sir Michael Havers, who is reported to have tried to prevent the naming of an abuser in Parliament by whistle-blowing MP Geoffrey Dickens in the 1980s.

Announcing her decision to step down, Lady Butler-Sloss acknowledged that she "did not sufficiently consider" the difficulties her family connections might cause in the conduct of the inquiry.

A lawyer for alleged victims of abuse said they were pleased at the decision of the former president of the High Court Family Division, describing it as "the only sensible decision to ensure that survivors and the public could feel confident that the inquiry was not going to be jeopardised by accusations of bias".

Senior MP Keith Vaz, who was the first to raise questions about Lady Butler-Sloss's appointment, said her departure after just six days showed the inquiry process launched by Mrs May was becoming "shambolic".

Questioning the Home Secretary at a meeting of the House of Commons Home Affairs Select Committee, which he chairs, Vaz said that Lady Butler-Sloss's departure was the latest indication of May's department "unravelling".

The latest climbdown follows the resignation of May's special adviser in the wake of a briefing war with Education Secretary Michael Gove, a crisis at the Passport Office and the admission that 114 files relating to allegations of child sex abuse had been lost.

But May responded: "I reject any suggestion that it is, in your words, unravelling."

She said she was "very sorry" that Lady Butler-Sloss had stepped down, but added: "I continue to believe that she would have done an excellent job, given her experience, expertise and absolute integrity.

"I do not regret the decision I made. I continue to believe that Elizabeth Butler-Sloss would have done an excellent job as chair of this inquiry."

In a statement, Lady Butler-Sloss said she was "honoured" to have been chosen to lead the inquiry, but added: "It has become apparent over the last few days that there is a widespread perception, particularly among victim and survivor groups, that I am not the right person to chair the inquiry.

"It has also become clear to me that I did not sufficiently consider whether my background and the fact my brother had been attorney general would cause difficulties.

"This is a victim-orientated inquiry and those who wish to be heard must have confidence that the members of the panel will pay proper regard to their concerns and give appropriate advice to Government.

"Nor should media attention be allowed to be diverted from the extremely important issues at stake, namely whether enough has been done to protect children from sexual abuse and hold to account those who commit these appalling crimes.

"Having listened to the concerns of victim and survivor groups and the criticisms of MPs and the media, I have come to the conclusion that I should not chair this inquiry and have so informed the Home Secretary.

"I should like to add that I have dedicated my life to public service, to the pursuit of justice and to protecting the rights of children and families, and I wish the inquiry success in its important work."