LABOUR PEER ARRESTED!

Downing Street is remaining silent about allegations of a possible cover-up following the arrest of the party's chief fundraiser Lord Levy.

He was freed on bail after being held on suspicion of conspiracy to pervert the course of justice.
Lord Levy was first arrested last year and Tony Blair has also been quizzed during the cash-for-honours inquiry.

The peer, who is a close ally of the prime minister, said he completely denied any allegations of wrongdoing.

Last week Downing Street denied allegations it had a hidden e-mail system from which messages were deleted after the cash-for-honours inquiry began.

But the BBC's political editor Nick Robinson said the police clearly believed they were not being given all the information they needed - even after searching government computers.
This could explain Lord Levy's latest arrest, he said. Liberal Democrat chief of staff Edward Davey said the "sorry affair" had the "whiff of Watergate about it". Conservative MP Nigel Evans said the arrest was a "seismic" development, adding: "It is important, we have to realise that the allegations are very serious indeed."

The Scotland Yard team, led by Deputy Assistant Commissioner John Yates, had been due to deliver its file of evidence to prosecutors by the end of this month, but they warned that would no longer be possible after the arrest of the Ruth Turner, a senior adviser to the prime minister, earlier this month.
Several other members of Tony Blair's inner circle have been questioned by police.
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.