Blair admits he must win back the public's trust
The Prime Minister faced tough questions over the war and Dr Kelly's suicide at his televised monthly media briefing.
But Mr Blair put up a bullish defence of his record and insisted the damaging affair had not lessened his "appetite" for power.
He insisted the naming of Dr Kelly as prime source for BBC claims that intelligence was "sexed up" was a matter for Lord Hutton's inquiry.
He also urged people to wait for the report from the Iraq Survey Group hunting for Saddam Hussein's weapons of mass destruction.
Instead, Mr Blair repeatedly stressed "real and sustainable" public services improvements.
In a signal of intent, he doubled the number of hospitals invited to apply for controversial Foundation status.
It was public services, not the intelligence row and Dr Kelly's suicide, on which the Government would be judged, he said.
But questioned about falling public trust in his leadership, he admitted: "There is an issue that we have to confront.
"People need to know that what we did in Iraq was right and justified," he said.
"That's a case we have to not just assert, but prove over time, both in relation to weapons of mass destruction and in relation to the improvement of Iraq."
The performance failed to impress his critics in all parties, including his own.
Dr Kelly's death overshadows Mr Blair's achievement in becoming the longest serving Labour Prime Minister on Saturday.
The milestone has brought unfavourable comparisons with the 1945-51 government and its creation of the welfare state.
However, Mr Blair opened by listing his own Government's achievements.
"The overall record is one that bears comparison with any government, Labour or Conservative, in the past," he said.
"I believe that we have done what we were elected to do."
However, as Mr Blair packs his bags for a holiday at Sir Cliff Richard's Barbados villa he can be in no doubt the issue of Iraq and Dr Kelly's death will be there to haunt him on his return.




