Osama bin Laden has admitted for the first time his al-Qaeda terror group carried out the September 11 attacks in the US. In a video interview taken in October, he says the Twin Towers were "legitimate targets" and the hijackers were "blessed by Allah". The civilian deaths were justified, he claims, because they were working for the American system.

The IRA is planning to mint 1000 campaign medals to commemorate their "war" with the British government.

Trade and Industry minister Patricia Hewitt has become embroiled in a row over the renting out of her constituency office to her local Labour Party during the general election campaign.

Railtrack bosses have claimed the company's investment plan is now indefinitely on hold following the government's decision to put it in administration. The modernisation of mainline routes, track maintenance and improving ailing commuter lines that were part of improvements worth billions have now been put off.

"There is potential for two years' delay on our ability to get upgrades onto the network," said Railtrack chief executive Steve Marshall.

The Sunday Times alleges that the Treasury held up a vital £162m payment to Railtrack which would have been made six days before transport secretary Stephen Byers made his High Court petition.

The Conservatives have called for a statement from the government after claims the Millennium Dome was to be taken off the market and leased out. The Tories say they are concerned that more public money will be wasted.

Contracts to run two private prisons for women could be won by Sodexho, the French company responsible for the discredited asylum voucher scheme.