Police consider conspiracy charges as cash and honours inquiry widens

As I reported a few months ago, Blair is in trouble regarding the alleged sale of honours for donations to his party.

Yesterday, the whole affair became decidedly more serious with the arrest of Lord Levy, one of Blair's most generous donors.

The Labour Party has been trying to play this as overzealous policemen indulging in "theatrics" but, with the arrest of Levy, it would appear that the Labour Party are now aware of just how serious is the position they now find themselves in.

There is even talk that Blair himself will be questioned under oath, which I think might be a first for a sitting British Prime Minister.

It is known that Lord Levy still has the strong support of the prime minister, but Mr Blair and other cabinet ministers are anxious to avoid a public slanging match with the police about their inquiry methods. Scotland Yard angrily disputed suggestions they had behaved theatrically, or that Lord Levy should be surprised that he had been arrested when he arrived at the police station on Wednesday morning. The police also disclosed yesterday that they had not been able to secure the cooperation of three lenders, implying that they may need to be arrested if they do not cooperate.

The clear implication that Mr Blair will be interviewed by police before a final report is sent to the Crown Prosecution Service came when Mr Yates firmly told MPs on the public administration select committee that the MPs should not call the prime minister to give evidence in their parliamentary inquiry. Such an evidence session would prejudice the inquiry he was conducting, he confirmed.

The Crown Prosecution Service are not due to hand in their report until the Autumn, so it will be winter before we find out if Blair, Levy, or others are to face prosecution.

Both the Tories and Labour had indulged in secret loan agreements that enabled both to avoid public disclosure of where they were raising their cash from.

For Cameron this will be an unwelcome reminder to the public that the "new boy" is just as sleazy as his counterparts. However, for Blair - a Prime Minister already under considerable pressure to resign - this may well signal the point when a stalking horse candidate could emerge to unseat him.

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Tags: Blair, Labour, cash for honours, Lord, Levy, scandal,