MPs to resume own honours inquiry

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An MPs' inquiry into the honours system - suspended during the police inquiry into cash-for-honours allegations - is to resume after the summer recess.

Evidence sessions will begin in October and John Yates, the officer in charge of the probe, is expected to be called.

On Friday it was announced no-one would be charged with any honours offences.

The public administration committee said it would not continue the police probe but would examine "policy and regulatory issues" arising from it.

The MPs' inquiry, which looks at "propriety issues" relating to the honours system, including nominations to the House of Lords, was first announced on 14 March 2006.

The police investigation has clearly been thorough and exhaustive, and they have had access to material that would not have been available to us Committee statement

But seven days later the Metropolitan Police announced they were beginning their own investigation, and MPs were asked to put their inquiry on hold.

In a statement, the committee said: "The police investigation has lasted much longer than was anticipated, and has now ended in a decision by the CPS that there are no grounds for prosecution.

"The police investigation has clearly been thorough and exhaustive, and they have had access to material that would not have been available to us. "They have sought to keep the Committee informed about the progress of their inquiry."

No prosecutions

The police inquiry was prompted by allegations that party donors had been nominated for peerages in return for loans.

During the 16 months, 136 people were interviewed, including the then prime minister Tony Blair, and former Tory leader Michael Howard.

On Friday the Crown Prosecution Service announced no charges would be brought, saying there was "insufficient evidence to provide a realistic prospect of conviction against any individual for any offence".

Two of the four people who had been arrested, Labour fundraiser Lord Levy and Mr Blair's former director of political operations Ruth Turner, said they were relieved it was over.

Ms Turner said the police had had an obligation to investigate the allegations - which were the subject of a formal complaint to police by the SNP MP Angus MacNeil.

But some Labour MPs have complained that the whole police inquiry, which many feel was very damaging to politics, was sparked by a "political vendetta".

And Sarah Helm, the wife of former Downing Street chief of staff Jonathan Powell, accused police of using "Gestapo tactics" in arresting Ms Turner in a dawn raid on her home.