Warm words for Lord Levy

Tony Blair warmly praised Lord Levy, his Middle East envoy, at a farewell party last night in London.

The Prime Minister thanked Lord Levy for his diplomatic role on the Middle East but avoided any mention that his envoy is still facing a criminal investigation over his other role as the Labour Party fundraiser.

Gordon Brown was due to appear but found other pressing engagements which prevented him from attending. Some cabinet ministers did turn up for the wine and canapes, at the Lancaster House in Pall Mall, including the Foreign Secretary, Margaret Beckett, who hosted the event, and Peter Hain, the Northern Ireland Secretary, who slipped out early. Also there was Geoff Hoon, the Europe minister, and David Blunkett, the former home secretary.

Lord Levy was arrested on suspicion of perverting the course of justice in the Metropolitan Police's inquiry into the cash-for-peerages allegations. A file has been sent to the Crown Prosecution Service and the police have been asked to carry out further investigations.

Lord Levy denies any question of wrong doing.

Mr Blair said that "Michael... has been absolutely invaluable for me to understand what is happening there [in the Middle East] and to be able to play some part in what has been one of the most difficult issues facing the world".

Mr Blair praised Lord Levy's ability to analyse the Middle East "correctly" and to inform him "where the main players will be".

Lord Levy thanked Mr Blair and joked that his audience included two senior diplomats who had received peerages - "and it had nothing to do with me".