Baroness Nicholson, the Liberal Democrat MEP, last night called for more investigations into the Simple Truth appeal for Kurdish refugees which was headed by Jeffrey Archer.

However, in a detailed statement, the peer also said: "If the inference was drawn that she was accusing Lord Archer of having stolen Simple Truth money from the British red cross, she regrets the misunderstanding."

Lady Archer responded last night: "I am very pleased that Baroness Nicholson has apologised to the family and now accepts there was no wrongdoing on Jeffrey's part."