LONDON (IRNA) -- The British government is being accused by MPs and families of soldiers killed in Iraq of politicizing allegations raised against Iran last year similar to the false intelligence used to overthrow Saddam Hussein's regime.

"Is this intelligence or is it propaganda?" former Labor defense minister Peter Kilfoyle asked, who also questioned whether Prime Minister Tony Blair had again been following U.S. President George W. Bush's obsession with Iran.

"This is what happened in Iraq. I have a deep, abiding mistrust of what is put out by the Government and a deep, abiding mistrust of what is put out by the intelligence services," Kilfoyle said.

"This is part of an almost unconscious urge to support whatever the American policy of the moment might be," he was quoted as saying by the Independent on Thursday.

His accusation comes after the Times reported on Monday that Britain had dropped its high-profile charges of Iranian involvement in supplying sophisticated explosive devices responsible for insurgents killing a series of British soldiers in southern Iraq last summer.

Government officials were said to now admit that there was no evidence, or even reliable intelligence, connecting the Iranian government to the infra-red triggered bombs which killed 10 British soldiers in the past eight months. But the Foreign Office in London rejected the latest report in the Independent newspaper, saying it was "simply wrong."

"That remains our position. There has, therefore, been no U-turn," a Foreign Office spokesman told IRNA Friday.

But families of the soldiers killed said they were seeking an explanation from the Government over its U-turn, which reportedly has led to a major row with the U.S. still accusing Iran of playing a role in fomenting violence in Iraq.

"I had the impression from the moment they made that statement that it was purely bully-boy tactics against Iran," said Sue Smith, whose son was killed along with two other UK soldiers when their patrol was hit at al-Amarah, north of Basra, last July.

"It makes me really angry. They should be dealing with the people who killed our sons and not using it as a weapon. The way I look at it, it was just an excuse for another invasion. They have a foothold in the Middle East and they want to go further," Smith said. She suggested that the accusations were politically motivated because the U.S. and UK "don't like Iran and they are using this for sympathy towards their attitudes, claiming that they were involved in the murder of our sons."

Concern was also expressed by Michael Moore, the defense spokesman for the Liberal Democrats, who called for an early statement from the British government after parliament returns from its Christmas break next week.

"Clumsy diplomacy can only make the situation in Iraq worse that it already is," Moore warned.

Subsequent to the allegations, IRNA learned from a party of British journalists visiting Basra, which included Evans, that commanders on the ground dismissed the allegations against Iran amid suggestions they had been politically motivated.

"There is not firm evidence that the Iranian government is involved" in supplying weaponry, a Defense Ministry source told Ammar al-Jundi, a diplomatic correspondent of the London-based Asharq al-Awsat newspaper, immediately following the accusation.

Jundi spent four days this week traveling in Basra and southern Iraq with other journalists, who were accompanied by Chief-of-Staff General Sir Michael Jackson, Britain's most senior army officer.