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Blair confidant arrested in peerage row

Hasan Suroor

LONDON: In a dramatic turn to Britain's "cash-for-peerages'' scandal, Prime Minister Tony Blair's close friend and his personal envoy to West Asia, Lord Levy, was arrested and later released on bail for his alleged role in raising £14 million for the Labour Party from rich businessmen whose names were then recommended for peerage.

The arrest of Lord Levy, a controversial and high-profile Labour figure, caused a sensation in political circles amid speculation that Mr Blair, who has publicly stated that he took full responsibility for his party's fund-raising campaign for last year's general election, was also likely to be questioned.

Although Downing Street dismissed such speculation, the BBC said the fate of Lord Levy and Mr Blair was "intertwined'', and Labour MPs acknowledged that the outlook for the Prime Minister did not look good.

Mr Blair, who is already under pressure to quit after declaring that this is his last term in office, was on Thursday facing renewed calls to step down. The Scottish National Party, at whose instance the police launched their investigation, said the water was now "lapping around the Prime Minister's feet''.

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