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Political effect

  • Nick
  • 13 Jul 06, 03:27 PM

I angered some by focusing on the impact of Lord Levy's arrest on Tony Blair. It may interest you to know, therefore, that John McDonnell MP, the leader of the left-wing Campaign Group, looks set tomorrow to announce a campaign to be Labour's next leader.

Or so I'm told by one of those he's approached to support him.

Is it any surprise that McDonnell wants to topple Tony Blair? No. Can he do it? Almost certainly not. Could he win if there was already a vacancy? No. So, is it irrelevant? No - remember Sir Anthony Meyer, the stalking horse . Lord Levy's arrest has already had a political effect.

A day on from that arrest, I now know a great deal more about the progress of the police's investigation into cash for peerages, and into possible breaches of the law meant to ensure that all donations to parties are open and transparent.

The police told MPs this morning that Lord Levy's arrest was not "theatrical" as the former 91热爆 Secretary David Blunkett claimed. It was, they said, designed to enable them to seize documents they needed to pursue their enquiries. They did not, on the other hand, contradict the assertion made by Lord Levy's solicitor that Labour's chief fundraiser is not about to be charged and may never be.

Others close to the prime minister have either been questioned or expect to be soon. Those with knowledge of this investigation expect that Tony Blair himself will eventually face questions. He is ready to do so although, I'm told, no contact has been made by the police and no date is in his diary. This investigation should be complete by the autumn - by which time the police and then the Crown Prosecution Service will have to decide whether there is a reasonable prospect of convictions. At present those involved simply do not know. Like all investigations of this sort, I'm told by someone in the know, the police "might find a smoking gun or this could dissolve into nothing".

Many in the Labour Party are angry that they appear to have been singled out. They point to the Lib Dems' problems with the foreign donor Michael Brown - who now faces his own police investigation. They point to the Tory party's long history of giving peerages to those who've donated and lent money to the party. They can now also point to the fact that the police say that they have interviewed more people from the Conservative than the Labour Party.

Why then is the focus on Labour? Because the police previously said that their focus was on the comments made by Des Smith - a head teacher - to an undercover reporter which suggested that honours could be linked to sponsorship of Tony Blair's favourite schools - the City Academies. And because they also focussed on the nominations for peerages by those whose loans had not been declared to the committee which vets nominations to the Lords. Finally, because only Des Smith and Lord Levy have been arrested.

There is, no doubt, that the leaderships of all three UK parties are thinking "there but for the grace of God go I". That is why there now appears to be a growing consensus behind reform both of the party-funding laws and the House of Lords. There is, though, only one party's leadership which is waiting nervously to see what the police might reveal.

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