John Prescott's office has insisted he did nothing wrong in meeting American entertainment tycoon Philip Anschutz, who wants to run Britain's first 'supercasino' at the millennium dome.

The deputy prime minister remains under intense pressure today after documents released under the Freedom of Information Act appeared to contradict previous denials that he had not discussed the competition with Anschutz.

The papers showed that his former department had asked to be kept informed of the process even though it was not running it and recommended that representatives of Anschutz's AEG firm meet then gambling minister Lord McIntosh.

Prescott's aides said the meetings would not affect the outcome of the bid as he was not responsible for the decision.

However his ally Lord Snape fuelled rumours that the deputy prime minister was thinking of stepping down over the latest allegations about him by saying: "I think he has had a pretty torrid time recently.

"The media are determined to get him for one reason or another. I hope he fights on but I could well understand if, like most human beings, he feels he has had enough."

Prescott had sought to draw a line under the affair yesterday by declaring his stay at a US ranch run by an Anschutz in the Commons register of members' interests.

He said he wanted to make clear he "acted at all times with integrity".

Several papers papers picture Prescott blowing a kiss to reporters as he left Number 10 last night, with the Independent asking simply whether this is "The end?" and the Express telling him to "Kiss that job goodbye, John".

The Times reports that the cost of staging the London Olympics is to rise by £1.5bn.

On the anniversary of the capital winning the bid for the Games, the government has signalled that it wants to speed up the regeneration of east London by bringing forward plans to extra infrastructure.

Ministers want to increase the budget to £5bn by paying for new homes and facilities in the Lea Valley area now rather than after the event.

Paul Deighton, chief executive of the London 2012 organising committee, told the FT he was determined that the Games should leave a lasting legacy.

But he added: "My biggest fear is that we don't fully take advantage of all the other opportunities which hosting these Games gives us."

Lord Coe, meanwhile, tells the Telegraph: "No one has any doubts about what a tough road this is. But preparations are on track. We have tried not to waste a single day."

Interviewed in the Times, Tony Blair confesses he did not think the London bid would win and gives his backing to a Great Britain Olympic football team.

"I think it would be a good idea," he says. "When you are hosting the Olympics and you have lots of countries who send their teams, it would be a shame if we didn't have one of our own."

The FT reports that the government's energy review will include new powers which would allow the government to force local authorities to accept new nuclear power plants seen as essential.

Industry secretary Alistair Darling told the paper he wanted to "make it easier for people to replace power plants that are going out of commission and to meet our energy needs."

Meanwhile, David Cameron is today expected to hint at his support for nuclear power.

In a keynote speech, the Conservative leader will emphasise the need for green solutions to tackle climate change, but will also back fast-track planning approval for new nuclear plants.

A series of complex tax reliefs for companies should be scrapped in return for a one point cut in corporation tax, Sir Menzies Campbell will say today.

The Liberal Democrats will also back moves to crack down on tax avoidance.

Interviewed in the Times, Conservative chairman Francis Maude announces that the party's 'A list' of priority parliamentary candidates is to be expanded to give activists more choice.

"It is very early days but it isn't good enough yet," he says. "There is no question about that."

Meanwhile party leader David Cameron has appointed a third fellow old Etonian to his 'kitchen cabinet'.

George Bridges is to be promoted from political secretary to head of campaigns following the Bromley by-election scare.

A committee of MPs has concluded that the special educational needs system is "not fit for purpose".

The education and skills committee report called for local authorities to be required by law to provide a broad range of support for youngsters with SEN - including the provision of special schools.

Home secretary John Reid has admitted that 19 convicted murderers who were released on licence after being given life sentences have been "lost" by the probation service.

The Express says it is "another appalling error by the Home Office".

Tony Blair has said the UK will try to ensure bail for the three former NatWest bankers at the centre of a high profile US extradition request.

The prime minister's intervention is said to indicate a change of stance.

A study backed by the Joseph Rowntree Foundation has concluded that at least an extra £4bn will have to be found if the government is to meet its target of halving child poverty by 2010.

Ending child poverty by the end of the next decade would cost a further £28bn a year, the report adds.

The news came as former welfare reform minister Frank Field warns that Labour has left more people on means-tested benefits than at any time since the slump of the 1930s.

The Independent reports on a boost to its "campaign for democracy" after Labour MPs in favour of proportional representation agreed to relaunch efforts for a change to the voting system.

Senior backbencher John Denham said the party would have a better chance of retaining power by adopting electoral reform.

The Sun splashes on a Ministry of Defence dossier it claims was found dumped in a ditch on Britain's response to a terrorist attack.

The document details how cabinet ministers and officials would meet, lists ongoing anti-terror operations and provides a telephone directory of military chiefs.

A senior Conservative MP will today warn David Cameron that the party will lose credibility if he goes ahead with plans to withdraw Tories from the centre right European People's Party grouping in Brussels.

Quentin Davies will say "a vital struggle is being waged for the soul of the Conservative Party".

The Commons public accounts committee has criticised the NHS for having "no idea" how many patients die each year as a result of medical error.

The MPs say the National Patient Safety Agency, established in 2001, has not yet been a success.

The Commons Northern Ireland affairs committee has warned that organised criminals with links to Ulster's paramilitaries are adopting increasingly sophisticated means to hide the origin of their money.

Evidence quoted by the MPs suggested there had been a shift from "paramilitary terrorism to paramilitary crime" since the IRA announced it was ending all military operations.

A House of Lords committee has criticised EU moves to harmonise consumer credit legislation.

The peers are concerned that a draft directive falls "well short" of protection provided in the UK.

In an interview with the Spectator, the head of the European Commission warns Gordon Brown he must act more like a team player if he becomes prime minister.

Jose Manuel Barroso says that without accepting the rules of the "club" the chancellor could be left with "no influence".

IN THE PRESS REVIEW

Prescott pressure intensifies

Fears on Olympic costs

Planning move to boost nuclear power

Lib Dems target tax complexity

'A list' set for Plan B

MPs warn on special needs provision

Home Office 'loses' lifers

UK seeks bail for 'NatWest three'

Warning on cost of ending child poverty

Denham: Adopt PR to keep power

'Doomsday dossier' discovered

Senior Tory criticises EPP move

Patient safety agency attacked

MPs express Ulster crime fears

Peers concerned by EU credit move

Brown 'must co-operate more with EU'