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Shadow justice secretary Sadiq Khan said David Cameron took the decision to go on holiday based on the intelligence that he knows.
He said: "He's got the intelligence at his finger tips, he will know what the events of last week, what they involve, with intelligence, he's got people advising him - he's taken the decision to go on holiday and it's a decision that he's got to stand by."
David Cameron has a small team of key staff with him in Ibiza and is being kept up to date over developments in the murder of Drummer Lee Rigby in Woolwich, a number 10 spokesman said.
Two Labour MPs have criticised David Cameron's "inappropriate" holiday to Ibiza.
John Mann, MP for Bassetlaw, told the Telegraph: "People expect him to be at his desk leading from the front. It is inappropriate that he is away, it suggests that he thinks he can run the country from a beach in Spain.
"Does anyone think Margaret Thatcher or Tony Blair would disappear at a time like this?"
Fellow MP Sarah Champion reportedly said: "While the country struggles to come to terms with the vile crime in Woolwich this week and investigations continue, he has swanned off to Ibiza. The public deserve better from their Prime Minister."
She added that Mr Cameron's decision to go on holiday showed he was "utterly out of touch."
The Prime Minister and his family have escaped to the Spanish Island of Ibiza for a week-long holiday.
According to Downing Street sources, Mr Cameron has been accompanied by a small team of key staff and is being kept up to date on developments in the Woolwich investigation.
The Prime Minister won support from an unlikely ally today when Nadine Dorries MP defended his holiday to Ibiza amid suggestions he should have stayed in the country.
The Conservative MP, who was briefly suspended from the party whip after taking part in the TV series 'I'm A Celebrity... Get Me Out Of Here', said it was "ridiculous" to criticise him for having a few days away.
She told Murnaghan on Sky News: "We have got the internet, we've got mobile phones.
"I think Cameron could actually get back from Ibiza to London quicker than if he was in Cornwall.
Mr Cameron has been accompanied by a small team of key staff and is being kept up to date over developments in the murder of Drummer Lee Rigby, Downing Street sources said.