The discovery yesterday morning of a body matching Dr Kelly’s description, in an Oxfordshire wood close to the weapons expert’s home, is already causing deep anguish and bitter mutual recrimination in Westminster.

The Ministry of Defence adviser was said to be under “considerable stress” after being named as a possible source for BBC claims that Alastair Campbell had “sexed up” an intelligence dossier on Iraq to strengthen the case for war.

Dr Kelly, 59, was dismissed as “chaff” by an MP when he gave evidence to the Foreign Affairs Select Committee’s inquiry into the allegations on Tuesday. The previous day, he had also been subject to a private 45-minute cross-examination by the Intelligence and Security Committee.

The former Iraq weapons inspector and Porton Down scientist had admitted meeting the BBC journalist Andrew Gilligan on May 22 but stated he could not have been the source for the story broadcast seven days later.

His wife, Janice, reported him missing after he failed to return home in Abingdon on Thursday evening. After a massive police search, the body of a man was found yesterday morning at Harrowdown Hill, a beauty spot about two miles from their home.

Although the cause of death will not be established until next week, it is widely believed he committed suicide.

Mr Blair’s official spokesman, speaking as the Prime Minister arrived in Tokyo, said there would be an independent judicial inquiry into the circumstances leading to Dr Kelly’s death. This is expected to include questions about whether he was the BBC’s source, as well as the way his name emerged in the media and the decision to subject him to cross-examination by MPs after he told the MoD about his meeting with Mr Gilligan.

Mr Blair, who spent a long time talking to senior ministers and officials on his flight, was “obviously very distressed for the family”, said his spokesman.

Fingers are already being pointed at Mr Campbell, Downing Street’s communications director, as well as the BBC, the select committees and the media — which Dr Kelly had complained was hounding him.

Mr Campbell, who learnt the news on his return to London from Washington this morning, is understood to be deeply shocked but unlikely to quit. Friends said he had done “nothing wrong” and the tragedy showed “something has gone horribly wrong with our political and media culture”.

Iain Duncan Smith suggested that Mr Blair should consider cutting short his visit to the Far East and return to the UK for a possible re-call of Parliament.

He said: “There are many questions that will need to be asked over the coming days and I think if I were the Prime Minister I would want to be back here to deal with these.”

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