Queen's Speech | Alice Miles: move on | Video: behind the scenes

A bitter political row over the arrest of the Tory frontbencher Damian Green all but eclipsed the grandest annual state occasion today as the Queen outlined her Government's legislative agenda for the year ahead.

The second Queen's Speech of Gordon Brown's premiership was clearly focused on getting Britain through the economic downturn, including a Banking Bill designed to strengthen protection for depositors and encourage financial stability.

But there was only really one subject of conversation in the corridors of the Palace of Westminster as the monarch arrived to address MPs and peers and the Yeomen of the Guard searched the cellars below: the arrest of Damian Green.

This afternoon, the Speaker Michael Martin is to make a statement to MPs explaining the decision to allow Scotland Yard detectives to search the Commons office of Mr Green, the Shadow Immigration Minister, while he was being questioned last week in an inquiry into Home Office leaks.

Many on the Opposition benches - including some senior Liberal Democrats - see that decision as a breach of parliamentary privilege, although Commons officials insist that privilege does not extend beyond MPs' statements on the floor of the House.

Lord Mandelson stoked up the row this morning, accusing the Conservatives of using the row as a "smokescreen" to cover the party's alleged involvement in illegal leaks,

While accepting there was real anger among Conservative MPs over Mr Green’s arrest and the search of his offices, the Business Secretary said that much of the furore was a "self-serving" attempt to distract attention from the offences he is suspected of committing.

Senior Conservative backbenchers including Michael Howard and Kenneth Clarke are expected to lead demands for a full debate on the affair after Mr Martin's statement today, scheduled for 2.30pm.

Mr Martin will set out the events of last Thursday, when Mr Green was held and questioned for nine hours, to try to justify the decision to allow police to carry out the search. If the Speaker attempts to restrict questions to short Points of Order, as aides suggest he will do, then MPs' anger could boil over.

A number of Tories are considering the "nuclear option" of tabling a motion of no-confidence in the Speaker, which could potentially pave the way for his removal of the veteran Glasgow MP.

But MPs did not seek to disrupt the Queen’s Speech, which set out the Government’s legislative programme for the coming year and was the ceremonial high point of the parliamentary calendar.

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