Lord Falconer, a close friend and ally of the Prime Minister, will face close questioning over the affair when he gives evidence to the all-party Constitutional Affairs Committee. As Secretary of State for Constitutional Affairs, Lord Falconer is responsible for political reform and is likely to play a part in any overhaul of the honours system. MPs are likely to call senior fundraisers such as Labour's Lord Levy and the party treasurer Jack Dromey to give evidence.
They called for long-term reform to restore faith in Parliament as teachers' leaders lambasted Tony Blair for "sleaze and cronyism". They called for the Prime Minister to be jailed if he was found guilty of condoning the offer of peerages to sponsors of his independently-run inner city academies.
The National Union of Teachers conference backed a motion condemning the notion a sponsor could gain a peerage for donating £10m to the academies.