Blair's close ally arrested in cash for peerages row

A close friend and political ally of the Primeminister  was arrested over the cash for peerages row today.

Lord Levy, 61, chief fundraiser to the Labour Party was arrested by police and later released on bail.

Critics from all political pursuasions  have been pouncing on the scandal that comes on a day when Blair was under scrutiny in the Commons at Primeministers Questions from Cameron regarding police mergers and Prescott's Cowboy act.

Alex Salmond claims that the 'water is lapping around at the PM's feet.'

David Davis, Shadow Home Secretary confirms that the police are taking the matter 'very seriously .'

The revelation comes as it emerged that multi million pound donations had been given to the Labour Party at the last election.

Detectives at Scotland Yard confirmed a man had been arrested and released on bail pending further enquiries.

Lord Levy claims he has done nothing wrong and said he was prepared to coorporate in every way he could.

A spokesman said: 'He has not been charged, and does not expect to be, as he has committed no offence.'

Critics from the media claim that the fate of Lord Levy and Blair are both intwined.

In unprecedented support, Former Home Secretary, David Blunkett waded into the row offering measure to the ongoing scandal.

He said: 'Let's ask the Metropolitan Police to do the job quickly and thoroughly and without theatricality.'

Lord Levy made his name in the 60's and 70's managing high profile singers such as Chris Rea.