Updating MPs on the situation in Iraq, the prime minister has admitted the current situation is "very difficult".

Downing Street had initially refused requests for a statement on Tony Blair's talks with UN secretary general Kofi Annan and President Bush.

But following criticism from opposition leaders Michael Howard and Charles Kennedy, Blair appeared before MPs.

"There is no doubt the present situation is very difficult," he said.

"It is absolutely clear what is going on there.

"All those who think they will lose out when