At least 45 people have been killed and 95 wounded today in a suicide bomb attack outside a police recruiting centre in the Kurdish city of Arbil, 200 miles north of Baghdad.

The bomber walked into a lengthy queue of people gathered outside the compound, which also serves as the local offices of the Kurdistan Democratic Party (KDP), and detonated explosives strapped to his body.

Cars and nearby buildings were damaged in the blast which has taken to 200 the total number of Iraqis killed since the nation's first democratic Cabinet was announced just seven days ago.

Hundreds of people rushed to the centre following the blast, searching through the debris in a desperate hunt for survivors.

Health officials at first put the death toll at 60, but this was later revised to 45. A doctor from the main Ruz Gari hospital read out the names of 39 victims - all applicants to join the police force - adding that six bodies had yet to be identified.

"Nothing can explain such carnage other than wanting to turn the whole country into a battlefield," said one student who witnessed the blast.

Today's attack is the most deadly for two months and will increase pressure on the new Iraqi government, which was sworn in yesterday but remains incomplete.

Ibrahim al-Jaafari, the Prime Minister, has resumed the tortuous negotiations aimed at resolving the dispute among Sunnis and Shias over seven outstanding cabinet posts, including two deputy prime ministerial posts and the key oil and defence ministries.

The factions have reached stalemate over the issue of allowing former members of Saddam Hussein's ruling Baath Party into sensitive posts within the new administration, a fractious coalition of Shia, Kurd and Sunni groups.

The insurgents' attack on a Kurd target is being seen as an attempt to further destabilise the nascent Government: the Kurds have assumed the role of peace-brokers between the rival Shia and minority Sunni elements.

Jack Straw, the Foreign Secretary, expressed his "sincere condolences" but said that he was optimistic the deaths would strengthen the country's commitment to democracy.

He said: "This was yet another wanton act of terrorism in Iraq, and yet again the target was innocent Iraqi civilians who were trying to rebuild their country after the ravages of Saddam Hussein.

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