Nicola Morgan MP described to ITV News how she heard an "almighty bang" and saw "clouds of thick black smoke" as she walked towards Vauxhall tube station.
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They deny a 'sweetheart deal' - but a senior source told ITV News the government promised to support such firms in the event of Brexit.
The father of Captain Khan, who died in Iraq in 2004, said the comment was "the most cruel thing you can say to grieving parents."
Little Sophia Williams died in a children's hospital in Edinburgh on June 5.