It was Mr Hoon's letter to Gavyn Davies, the chairman of the BBC, that identified Dr Kelly as the source of the infamous story by Andrew Gilligan, the BBC's defence correspondent.
Ms Jackson branded the whole situation "shameful", adding: "They decided to create an artificial and completely politically motivated row with the BBC to avoid the real issue and out of that has come this clearly honourable, decent public servant being thrust into the spotlight in my view to protect ministers. I think that is absolutely disgraceful."
She said it would be impossible for the Government to function properly while the inquiry took place and instead said that those ministers "ultimately responsible" should step down. Mr Hoon told Sky News that the Foreign Affairs Select Committee, chaired by the Labour MP Donald Anderson, was warned that Dr Kelly was not used to giving evidence to Parliamentary committees.
"I informed the chairman of the select committee to take that into account in the way that the business of the committee was conducted," Mr Hoon said, in a move that one Labour MP described as a "sickening" attempt to shift the blame elsewhere.
Mr Hoon said the letter to the BBC chairman, from which Dr Kelly's name was leaked, was "entirely confidential" and was sent "for his eyes only".
The Defence Secretary then admitted that though a "great deal of effort was made within the Ministry of Defence to support Dr Kelly", he himself had not spoken to him.
For his part, Mr Campbell privately let it be known that he is unlikely to resign over Dr Kelly's death. Friends said, however, he would not have continued his dispute with the BBC over whether the dossier on Iraq's weapons capability had been "sexed up" had he known where it would lead. But they said that he still thought he had acted correctly. Mr Campbell was said to believe that "something has gone horribly wrong with our political and media culture".
Though he may not step down now, Mr Campbell's long-term future as Downing Street's director of communications and strategy has long been in doubt and insiders suspect this latest episode can only have dampened his enthusiasm for the job. For now, however, he will protect his beleaguered boss.
Labour MP, Bob Marshall-Andrews yesterday added his voice to growing calls for the Prime Minister to step down. "I think there is now a very wide and general view that the time has come for him [Blair] to go and I think, forgetting the politics of it, he is now making quite serious, regular errors. He has lost his political touch, which is inevitable over a period of time. "I think there is a pretty universal view that the time has come for him to go," he said.
Such is the level of anger that Ms Jackson publicly said that Mr Blair had been prepared to pay the "blood price" by waging war on Iraq. "He is still prepared to pay that blood price provided the blood is not his own," she said.
Mr Blair was asked at a press conference in Japan whether he had blood on his hands and whether he had discussed with Mr Campbell or Mr Hoon their possible resignations.
He refused to be drawn, saying: "The reason for having an inquiry, and I think people would have expected us to have one because of the tragedy that has occurred, is so that the facts can be established.
"And I don't think it is right for anyone, ourselves or anybody else, to make a judgment until we have the facts. The person who can conduct this inquiry is someone who is highly respected and will get to the truth of what has happened."
He added: "In the meantime, I think for both of us if you like, for the politicians for our part, for the media for your part, it is important that we show some restraint and also some respect."
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INDEPENDENT
Death of a civil servant, a casualty of war
British Parliament Foreign Affairs Committee transcript:
Evidence of Dr David Kelly
Key players in the 'sexed-up dossier' affair
Herald Feature: Iraq
Iraq links and resources