Levy to be charged over cash for honours, say Blair's No 10 aides

Lord Levy will be charged in the "cash for honours" affair, according to close aides of Tony Blair. Members of the former prime minister's inner circle, who were closely involved in the nomination of millionaire Labour donors for honours, have told friends that they believe the peer will not escape prosecution.

The Crown Prosecution Service has said it has enough evidence to make a judgment on pressing charges. It has consulted independent barristers about whether Lord Levy was guilty of conspiring to pervert the course of justice and if he broke the law which prohibits the granting of honours in return for cash or inducements.

Lord Levy has been arrested and questioned by the police on several occasions. He has hired his own lawyers and an experienced PR expert to represent him.

Mr Blair's closest No 10 aides, who are aware of much of the evidence being reviewed by prosecutors, have said they think the case will go to court, with Lord Levy central to the case. Friends of the peer also said they would not be surprised if he is charged. One said he would "be amazed" if Lord Levy was not.

A spokesman said the Labour peer had "no idea" if he would be charged but was confident he would clear his name in court if the case goes to trial.

"Michael [Lord Levy] is very confident that if there are charges he will be fine. He genuinely denies doing anything wrong. He feels that if he has toprove his innocence through court so be it," he said.

Sir Christopher Evans, a biotech millionaire who loaned £1m to Labour before the 2005 General Election, is another figure central to the case. He was arrested during the investigation and prosecutors are still considering whether he should face charges.

Former Downing Street aides, who had access to the most sensitive material in the affair, say that a court case, during which Blair could be called to give evidence under oath in the witness box, would prove highly damaging. They are confident that Ruth Turner, a No 10 aide who was also arrested during the investigation, will escape charges.

They are also concerned about the evidence that Lord Levy, who as the former prime minister's personal fundraiser had access to top-secret files, could give. The Foreign Office's decision to host a lavish party for Lord Levy when he retired as Middle East envoy was seen by some at Westminster as an attempt to keep him on side. Lord Levy's son, Daniel, an expert on Israeli politics, has recently been given a job advising Tony Blair in his new role as Middle East peace envoy for the Quartet - the UN, US, EU, and Russia.

The CPS's lawyers are moving to a swift conclusion in the cash for honours case, which they are keen to "expedite" although they are still reviewing evidence.

Last night opposition politicians said a court case would damage Labour. "If Levy comes to trial, Blair must tell the truth, the whole truth and nothing but the truth on oath in the witness box," said Lord Oakeshott of Seagrove Bay, the Liberal Democrat peer. "Then the hand of British constitutional and legal history truly will be on his shoulder."

Lord Levy played a central role in liaising with wealthy donors who were later offered peerages. He advised two donors on how to fill out nomination forms. The police wanted to determine if Lord Levy had a role in choosing donors for peerages and if he recommended names to Downing Street. They also questioned the peer on whether he tried to mislead or frustrate the investigation.

Hundreds of pages of evidence from Scotland Yard were submitted to prosecutors, including three interviews with the Prime Minister, the transcripts of which are stored in a safe within a sealed-off high security floor that even senior CPS staff cannot access.

The files are also believed to include evidence showing that key witness statements did not tally. A source close to the inquiry said officers looked at whether people working for Tony Blair tried to cover their tracks in witness statements or laid a false trail for police.