Cash for Peerage whitewash

1.26.52pm BST (GMT +0100) Sat 21st Jul 2007

The Crown Prosecution Service has announced that no charges will be brought against the three people arrested in the cash for honours inquiry.

Police believed they had found evidence of honours being traded for cash by Labour, and of an attempt to thwart the police investigation.

Whilst I wouldn't say it a Whitehall source with knowledge of the investigation said: "The legislation is complex. The police found evidence, I think the CPS bottled it."

One key piece handed to the team was a diary kept by Sir Christopher referring to him and Lord Levy "discussing a "K or a P"; he admitted he meant a "knighthood or peerage". In an open letter in March Sir Christopher said he talked to the peer several times: "He ... was speculating whether I might one day be awarded a knighthood or be offered a peerage." But, he went on: "Were conversations also about making donations to the party? Of course they were ... did he ever promise me anything in return? No. Never."