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Honours police arrest Lord Levy Honours police arrest Lord Levy
(20 minutes later)
Labour's chief fundraiser Lord Levy has been re-arrested by police looking into cash-for-honours allegations.Labour's chief fundraiser Lord Levy has been re-arrested by police looking into cash-for-honours allegations.
He was held on suspicion of conspiracy to pervert the course of justice and was later bailed. He was questioned on suspicion of conspiracy to pervert the course of justice and later bailed.
Lord Levy, a close ally of Tony Blair, was previously arrested in connection with claims honours had been sold in exchange for party donations. Lord Levy, a close ally of Tony Blair, was first arrested last year in connection with claims honours had been sold in exchange for party donations.
A spokesman said that Lord Levy "completely denies any allegations of wrongdoing whatsoever". A spokesman for Lord Levy said he "completely denies any allegations of wrongdoing whatsoever".
The Metropolitan Police team investigating the allegations has so far spoken to about 90 people including Tony Blair and former Conservative leader Michael Howard. Downing Street declined to comment on Lord Levy's latest arrest.
All involved deny any wrongdoing. The Metropolitan Police have so far spoken to about 90 people in connection with their inquiries, including Tony Blair and former Conservative leader Michael Howard.
Four people have been arrested - Lord Levy, Downing Street adviser Ruth Turner, Labour donor Sir Christopher Evans and head teacher Des Smith, who was involved in the government's City Academy programme. No one has been charged. Dawn raid
Lord Levy's spokesman issued a statement saying: "Lord Levy went to the police station as asked. He was interviewed again. Four people have been arrested - Lord Levy, Downing Street adviser Ruth Turner, Labour donor Sir Christopher Evans and head teacher Des Smith, who was involved in the government's City Academy programme.
"He completely denies any allegation of wrongdoing whatsoever. No one has been charged and all involved deny any wrongdoing.
Increasingly this sorry affair has the whiff of Watergate about it Ed Davey, Lib Dems Lord Levy profile
The Scotland Yard team, led by Deputy Assistant Commissioner John Yates, had been due to deliver its file of evidence to prosecutors by the end of this month.
But they warned that would no longer be possible after Ms Turner was arrested in a dawn raid on her London home earlier this month.
Other members of Mr Blair's inner circle to have spoken to officers investigating cash for honours claims include his of political operations John McTernan, who has been interviewed twice.
'Watergate'
Mr Blair's chief of staff Jonathan Powell has also reportedly been quizzed under caution.
Liberal Democrat chief of staff Edward Davey said: "Increasingly this sorry affair has the whiff of Watergate about it.
"For [former US president Richard] Nixon the crime was the cover up, but we must await the result of the police investigation to see whether something similar is now happening in Downing Street. "
Lord Levy's spokesman issued a statement saying: "Lord Levy went to the police station as asked. He was interviewed again. He completely denies any allegation of wrongdoing whatsoever.
"He left the police station in the early afternoon and since there is a continuing investigation he will not make any further comments at this time.""He left the police station in the early afternoon and since there is a continuing investigation he will not make any further comments at this time."
Lord Levy was first arrested last July, in connection with alleged offences under the Honours (Prevention of Abuses) Act 1925 and Political Parties, Elections and Referendums Act 2000.Lord Levy was first arrested last July, in connection with alleged offences under the Honours (Prevention of Abuses) Act 1925 and Political Parties, Elections and Referendums Act 2000.
Nearly two weeks ago Downing Street political adviser Ruth Turner was also arrested on suspicion of perverting the course of justice. She has denied any wrongdoing and has the backing of Mr Blair.
The inquiry began after it emerged that a number of large secret loans had been made to the Labour Party before the 2005 general election, and that some of those lenders had subsequently been nominated for peerages.The inquiry began after it emerged that a number of large secret loans had been made to the Labour Party before the 2005 general election, and that some of those lenders had subsequently been nominated for peerages.
SNP reaction
The investigation has since widened to cover the other main parties.The investigation has since widened to cover the other main parties.
Last year, Scotland Yard said it was due to hand over a file on the case in January to the Crown Prosecution Service, which would decide whether any charges should be brought. The cash-for-honours inquiry was prompted by a complaint by Scottish National Party MP Angus MacNeil that financial support was being rewarded with honours.
He said of Lord Levy: "This of course is the man who's been closest to Tony Blair in the whole fundraising escapade for Labour.
"And it really doesn't look good for Labour at all."
At the weekend, appearing on BBC One's Politics Show, Mr Blair repeatedly declined to answer questions on the police investigation.
He said: "Let the thing run its course and then we will see."