Honours police arrest Lord Levy
Labour's chief fundraiser Lord Levy has been arrested by police investigating cash-for-honours allegations.
He was held on suspicion of conspiracy to pervert the course of justice when he returned to answer police bail, following his arrest last year.
Lord Levy, a close ally of Tony Blair, was bailed pending further enquiries.
Police are investigating whether money was donated to political parties in exchange for peerages - all those involved deny any wrongdoing.
The Metropolitan Police team investigating the allegations have so far spoken to about 90 people 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.
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 investigation has since widened to cover the other main parties.
Scotland Yard is due to hand over a file on the case in January to the Crown
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