Champagne for Lord Levy as cash for honours case collapses

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Tony Blair's chief fundraiser Lord Levy toasted the collapse of the cash-for-honours case with champagne today.

Welcoming the decision Lord Levy, who was arrested as part of the inquiry, thanked his family and legal team for standing by him during what he said was an "incredibly long and extremely stressful" period.

The cash-for-honours inquiry put those involved through a "traumatic time", Tony Blair said.

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In the clear: Ruth Turner heads for work in a cab and a jubilant Lord Levy

In a pre-prepared statement Lord Levy told reporters: "It comes as a great relief that after a complete and thorough investigation assessed by the country's leading legal experts I have been exonerated as we expected.

"I do not intend to comment on the police's handling of this inquiry.

"I am sure if there are any issues which need to be looked at others with much more experience and who are better qualified will do so."

Lord Levy added that he was "disapppointed" by the constant media leaks that have occurred throughout the case.

"I have been disappointed by the constant leaks to the media which have been misleading, factually inaccurate and personally damaging.

"I always had confidence that no charges would be brought against me", he said.

After making his statement, he left, smiling, responding only to the question "Will you have a party?" with "I'm thinking about it".

Head of the CPS Special Crime Division Carmen Dowd said: "Having considered all of the evidence in this case I have decided that there is insufficient evidence to provide a realistic prospect of conviction against any individual for any offence in relation to this matter."

His mood was in stark contrast to Scotland Yard and the Crown Prosecution Service after the launch of a formal inquiry amid huge criticism when it emerged that no one will face charges after a 16-month police probe costing £800,000.

Metropolitan Police Assistant Commissioner John Yates defended his cash-for-honours inquiry saying it was "absolutely proper" that when appropriate detectives used the full range powers at their disposal.

The detective recognised that his inquiry, which lasted more than a year, had not been a "comfortable time" for those who came under the investigative spotlight, including Tony Blair's fundraiser Lord Levy.

He said: "With allegations such as these, which were of utmost seriousness, the investigation had to be thorough and meticulous in every respect."

His boss, Commissioner Sir Ian Blair, added that Mr Yates and his team had his "full support and confidence".

"The inquiry has been a meticulous and proportionate response to the serious allegations that were made," Sir Ian said.

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Sir Christopher Evans was detained over allegations concerning the abuse of the honours system

Tony Blair said today he was "very pleased" no one would face charges over the cash-for-honours allegations. The former prime minister, who was quizzed three times by detectives as a witness, said all those involved had been put through a "terrible, even traumatic time".

The handling of the case by Assistant Commissioner John Yates will now come under close scrutiny

In a statement, he said: "This investigation has ended as I always expected it would.

"Those involved have been through a terrible, even traumatic time. Much of what has been written and said about them has been deeply unfair, and I am very pleased for all of them that it is now over."

He went on: "I want to make it clear that I level no criticism at the police.

"They were put in an invidious position by the SNP complaint and had a very difficult task to perform.

"The police were right to carry out a thorough and complete investigation.

The investigation went right to the top with Mr Blair becoming the first serving prime minister to be questioned by detectives. The length and scope of the inquiry raised expectations that there were likely to be grounds to bring charges.

A close friend of Ruth Turner today launched a stinging attack on the Met over its handling of the inquiry.

Simon Danczuk said Scotland Yard had "serious questions" to answer and accused police of a series of damaging leaks that had taken a "detrimental" toll on Ms Turner.

Other friends attack the "blatant intimidation" of the dawn raid on her home that police carried out earlier this year.

Gordon Brown gave the police his full backing today, declaring that they were right to launch a thorough investigation.

Speaking at a Paris press conference after talks with French president Nicolas Sarkozy, he said:

"What I can say is that these were very serious allegations, it's right that the police investigated these matters and I hope that once the police make the statement and the Crown Prosecution Service makes it clear, that we can bring an end to what has been now months of speculation."

He added that in the wake of the affair all parties should unite to "try and get a better system of political funding in our country".

Glen Smyth, spokesman for the Metropolitan Police Federation, defended the conduct of Assistant Commissioner John Yates, saying: "He's a decent man he deserves better than this."

In his statement Yates said he would now provide the Metropolitan Police Authority with a report accounting for "both the cost and the outcome of what has been a high profile and resource intensive investigation".

He said: "There can be little doubt it has been a challenging case. The proportionality and necessity of any action were matters uppermost in my mind throughout.

"Some have been surprised about the intensity and length of the police investigation and I recognise that this has not been a comfortable time for any of those people who came under the investigative spotlight."

But he stressed that despite the discomfort, the allegations were serious, adding: "It was absolutely proper therefore that, when appropriate, police used the full range of powers at their disposal to gather the available evidence or potential evidence."

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