This article is from the source 'bbc' and was first published or seen on . It will not be checked again for changes.

You can find the current article at its original source at http://news.bbc.co.uk/go/rss/-/1/hi/uk_politics/6187881.stm

The article has changed 2 times. There is an RSS feed of changes available.

Version 0 Version 1
Prescott wades into honours row Prescott wades into honours row
(about 4 hours later)
John Prescott has backed state funding for political parties amid new claims in the cash for honours affair.John Prescott has backed state funding for political parties amid new claims in the cash for honours affair.
The deputy prime minister said allegations of "backdoor fixing" of peerages were "totally untrue".The deputy prime minister said allegations of "backdoor fixing" of peerages were "totally untrue".
But he said the system had to be "sorted out" and state funding would help prevent problems in the future.But he said the system had to be "sorted out" and state funding would help prevent problems in the future.
The Sunday Times reports Tony Blair's chief of staff, Jonathan Powell, is to be interviewed under caution by police probing the allegations.The Sunday Times reports Tony Blair's chief of staff, Jonathan Powell, is to be interviewed under caution by police probing the allegations.
Earlier this week, Mr Blair became the first serving prime minister to be interviewed as part of a criminal investigation.Earlier this week, Mr Blair became the first serving prime minister to be interviewed as part of a criminal investigation.
Mr Blair was not interviewed under caution, suggesting he is being treated as a witness rather than a suspect.Mr Blair was not interviewed under caution, suggesting he is being treated as a witness rather than a suspect.
'Key suspect''Key suspect'
The police are thought to have asked him about the notes of conversations between his chief fundraiser, Lord Levy, and Labour donor Sir Christopher Evans.The police are thought to have asked him about the notes of conversations between his chief fundraiser, Lord Levy, and Labour donor Sir Christopher Evans.
The BBC has learned notes of the conversation, made by Sir Christopher Evans, suggest he was asked if he wanted "a K or a big P" - a reference to knighthoods and peerages.The BBC has learned notes of the conversation, made by Sir Christopher Evans, suggest he was asked if he wanted "a K or a big P" - a reference to knighthoods and peerages.
Nothing other than the notes suggest that Lord Levy, who has denied any wrongdoing, made the remark.Nothing other than the notes suggest that Lord Levy, who has denied any wrongdoing, made the remark.
Sir Christopher's spokesman denied the offer of an honour for cash was made.Sir Christopher's spokesman denied the offer of an honour for cash was made.
The Sunday Times reports that Jonathan Powell was now being treated as a "key suspect" and would be interviewed under caution after police uncovered potentially incriminating e-mails.The Sunday Times reports that Jonathan Powell was now being treated as a "key suspect" and would be interviewed under caution after police uncovered potentially incriminating e-mails.
Public servicePublic service
The e-mails are understood to discuss meetings about Mr Blair and Lord Levy about forthcoming honours lists. The e-mails are understood to discuss meetings between Mr Blair and Lord Levy about forthcoming honours lists.
Two other senior Number 10 aides, John McTernan, will also be interviewed under caution, the newspaper says, quoting Whitehall sources. Two other senior Number 10 aides, John McTernan and Ruth Turner, will also be interviewed under caution, the newspaper says, quoting Whitehall sources.
The Independent on Sunday claims to have uncovered evidence undermining Mr Blair's claim that he nominated the four men at the centre of the row for peerages for their services to the Labour party.The Independent on Sunday claims to have uncovered evidence undermining Mr Blair's claim that he nominated the four men at the centre of the row for peerages for their services to the Labour party.
Official papers leaked to the newspaper appear to contradict this version of events, suggesting the four men were nominated for public service.Official papers leaked to the newspaper appear to contradict this version of events, suggesting the four men were nominated for public service.
Mr Prescott dismissed the stories as "speculation".Mr Prescott dismissed the stories as "speculation".
'Difficult decisions''Difficult decisions'
Speaking on BBC One's Sunday AM he said Labour's ruling National Executive had met last week to deal with the accusations of "backdoor fixing" on peerages.Speaking on BBC One's Sunday AM he said Labour's ruling National Executive had met last week to deal with the accusations of "backdoor fixing" on peerages.
"Totally untrue - and we've actually dealt with that," he insisted."Totally untrue - and we've actually dealt with that," he insisted.
"But let's be clear there are some difficult decisions to be made.""But let's be clear there are some difficult decisions to be made."
Mr Prescott emphasised that all parties were entitled to appoint political peers, adding: "That is a proper process that we conduct and we all do it."Mr Prescott emphasised that all parties were entitled to appoint political peers, adding: "That is a proper process that we conduct and we all do it."
He continued: "As for the allegation of whether there is a connection between financial contributions and giving the honours there is an investigation under way.He continued: "As for the allegation of whether there is a connection between financial contributions and giving the honours there is an investigation under way.
"Let us wait and see what the investigation will produce. No one has been charged as such.""Let us wait and see what the investigation will produce. No one has been charged as such."
'Final solution''Final solution'
Mr Prescott stressed that buying peerages was an offence, but added: "Our history has been quite a colourful one in this. That is why it needs to be sorted out."Mr Prescott stressed that buying peerages was an offence, but added: "Our history has been quite a colourful one in this. That is why it needs to be sorted out."
Both the current police probe and the Hayden Phillips' review of party funding would "have some effect on the final solution," he predicted.Both the current police probe and the Hayden Phillips' review of party funding would "have some effect on the final solution," he predicted.
About 90 people, including most of the Cabinet and former Conservative leader Michael Howard, have now been interviewed by police investigating cash for honours claim.About 90 people, including most of the Cabinet and former Conservative leader Michael Howard, have now been interviewed by police investigating cash for honours claim.
Assistant Commissioner John Yates, of Scotland Yard, has said he expects to complete his inquiry next month.Assistant Commissioner John Yates, of Scotland Yard, has said he expects to complete his inquiry next month.
He will then deliver a report to the Crown Prosecution Service, who will decide whether to prosecute any individuals in connection with the affair.He will then deliver a report to the Crown Prosecution Service, who will decide whether to prosecute any individuals in connection with the affair.
'Fall guy''Fall guy'
Angus MacNeill, the SNP MP who sparked the inquiry, said his "gut feeling is that this matter is moving towards its climax".Angus MacNeill, the SNP MP who sparked the inquiry, said his "gut feeling is that this matter is moving towards its climax".
"The key point now is that the prime minister's defence is starting to collapse around him while the main participants in the drama are moving in different directions as they seek to protect their own positions," he said."The key point now is that the prime minister's defence is starting to collapse around him while the main participants in the drama are moving in different directions as they seek to protect their own positions," he said.
"Blair is abandoning Lord Levy who is clearly being set up as the fall guy, as the events of this weekend make it increasingly clear that Blair sees Levy as highly expendable."Blair is abandoning Lord Levy who is clearly being set up as the fall guy, as the events of this weekend make it increasingly clear that Blair sees Levy as highly expendable.
"However, if Levy is true to his word that he won't be used as the prime minister's scapegoat, Blair is now in deep, deep trouble.""However, if Levy is true to his word that he won't be used as the prime minister's scapegoat, Blair is now in deep, deep trouble."
Downing Street has said Lord Levy remains Mr Blair's personal envoy to the Middle East, but a spokesman refused to say if he would be playing any part in Mr Blair's current visit to the region.Downing Street has said Lord Levy remains Mr Blair's personal envoy to the Middle East, but a spokesman refused to say if he would be playing any part in Mr Blair's current visit to the region.