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Speculation over 'honours' arrest Speculation over 'honours' arrest
(about 3 hours later)
Speculation continues about the identity of a third man arrested over Labour "cash for honours" allegations.Speculation continues about the identity of a third man arrested over Labour "cash for honours" allegations.
Police will not give details of the man, who has been released on bail, but say he was questioned outside London.Police will not give details of the man, who has been released on bail, but say he was questioned outside London.
Officers have also interviewed Labour's chief fundraiser Lord Levy, who denies any wrongdoing, for a second time in London and he has been bailed.Officers have also interviewed Labour's chief fundraiser Lord Levy, who denies any wrongdoing, for a second time in London and he has been bailed.
He was initially arrested on 12 July and interviewed by officers from Scotland Yard.He was initially arrested on 12 July and interviewed by officers from Scotland Yard.
The third man arrested is not understood to be anyone who works in Downing Street.The third man arrested is not understood to be anyone who works in Downing Street.
Spokesmen for both the Labour and Conservative parties said they had been unaware of the latest arrest.Spokesmen for both the Labour and Conservative parties said they had been unaware of the latest arrest.
A Downing Street spokesman said: "All we've said is that we don't comment on an ongoing investigation and that remains the case."A Downing Street spokesman said: "All we've said is that we don't comment on an ongoing investigation and that remains the case."
Lord Levy has raised millions for Labour.Lord Levy has raised millions for Labour.
His spokesman said only: "Lord Levy returned as requested to meet the police today to help them with their ongoing investigation."His spokesman said only: "Lord Levy returned as requested to meet the police today to help them with their ongoing investigation."
Low profile LevyLow profile Levy
When he was first arrested there were calls for him to be sacked from his role as Mr Blair's personal representative in the Middle East, despite not having been charged with any offence.When he was first arrested there were calls for him to be sacked from his role as Mr Blair's personal representative in the Middle East, despite not having been charged with any offence.
And there had been widespread speculation that the prime minister himself may face questioning.And there had been widespread speculation that the prime minister himself may face questioning.
Police are probing claims that Labour-supporting millionaires were nominated for peerages in return for making large loans to the party in the run-up to the 2005 General Election.Police are probing claims that Labour-supporting millionaires were nominated for peerages in return for making large loans to the party in the run-up to the 2005 General Election.
Lord Levy had been maintaining a low profile following his arrest, but appeared to resume his duties in August when he met Israeli government ministers.Lord Levy had been maintaining a low profile following his arrest, but appeared to resume his duties in August when he met Israeli government ministers.
And he accompanied Mr Blair on his visit to the Middle East earlier this month.And he accompanied Mr Blair on his visit to the Middle East earlier this month.
First arrestFirst arrest
Lord Levy was the second person to be arrested in connection with the inquiry.Lord Levy was the second person to be arrested in connection with the inquiry.
Head teacher Des Smith, who was arrested and bailed in April, was the first.Head teacher Des Smith, who was arrested and bailed in April, was the first.
Mr Smith was on the council of the Specialist Schools and Academies Trust (SSAT), which helped find sponsorship for city academies.Mr Smith was on the council of the Specialist Schools and Academies Trust (SSAT), which helped find sponsorship for city academies.
He resigned from the trust after allegedly telling an undercover Sunday Times reporter it was typical for people who made donations to the project to get an honour.He resigned from the trust after allegedly telling an undercover Sunday Times reporter it was typical for people who made donations to the project to get an honour.
The trust, which was set up in September 2005, helps the government recruit education sponsors and its president is Lord Levy.The trust, which was set up in September 2005, helps the government recruit education sponsors and its president is Lord Levy.
The allegations have been denied by all involved.