Lord Levy arrest a second time in Cash for Honours investigation

4.00.00pm UTC (GMT +0000) Wed 31st Jan 2007

Tony Blair's chief fundraiser and confidant Lord Levy was arrested for a second time yesterday on suspicion of perverting the course of justice over his role in the cash for honours affair. Police are known to be following a trail of encrypted emails and electronic trails on computer hard drives as part of their 10-month inquiry.

Ed Davey MP said "Increasingly this sorry affair has the whiff of Watergate about it. For Nixon the crime was the cover up, but we must await the result of the police investigation to see whether something similar is now happening in Downing Street. He must now ensure that we get reform of party funding and the House of Lords at the earliest possible opportunity."