Tony Blair declared tonight that Britain "will not be terrorised" after a spate of bomb attacks that killed at least 37 people in London's morning rush hour today.

Four blasts hit London shortly before 9am, three of them in London Underground trains and one on a double-decker bus travelling through Bloomsbury. Police said that the confirmed death toll was 37 and rising. Some 700 commuters and tourists were injured, almost half of whom were taken to hospital by ambulance.

It was the UK's worst terrorist outrage and bore all the hallmarks of an al-Qaeda attack, similar to the Madrid train bombings of March 2004. An unknown al-Qaeda cell claimed responsibility in an unverifiable claim on an Islamist website and declared: "Britain is now burning in fear."

After breaking off from the first day of the G8 summit at Gleneagles, the Prime Minister returned to No 10 Downing Street, where he said in a solemn televised statement: "There will of course now be the most intense police and security service action to make sure that we bring those responsible to justice."

"The purpose of terrorism is just that, it is to terrorise people - and we will not be terrorised," he added. "This is a very sad day for the British people but we will hold true to the British way of life."

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