Blair faces day in court over cash-for-honours

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The former Prime Minister is on a provisional list of prosecution witnesses drawn up by Crown lawyers.

Mr Blair, who was interviewed as a witness three times by police, would be expected to give evidence about the system for awarding peerages if called to the Old Bailey.

The revelation came as the Crown Prosecution Service prepares to announce if anyone should be charged over claims that peerages were traded for loans to the Labour Party.

There have also been allegations of an attempted cover-up.

After weeks of feverish speculation, an official decision is expected by the CPS next week.

The disclosure that Mr Blair has been pencilled in as a witness raises the stakes in the most sensitive case considered by Crown lawyers in modern times.

Mr Blair's chief fundraiser Lord Levy, No 10 gatekeeper Ruth Turner and millionaire donor Sir Christopher Evans - all arrested during the 13-month probe - will learn their fate when they answer police bail next week.

Their future is in the hands of senior CPS lawyer Carmen Dowd and leading criminal barrister David Perry QC.

Ken Macdonald QC, the Director of Public Prosecutions, has "excluded" himself as he is an exlegal colleague of Cherie Booth.

The CPS has to decide firstly if there is sufficient evidence to bring charges and, secondly, if it is in the public interest to act.

Scottish Nationalist MP Angus MacNeil, whose complaint to Scotland Yard triggered the inquiry, said any decision to discontinue the case could be challenged in the courts.

Mr MacNeil said: "I have (also) heard murmurings that a City tycoon might finance a private prosecution.

"There may not be sufficient evidence. Then it is vital Scotland Yard's report is made public."

In April, police handed the CPS a 216-page file which - according to sources - stated that there were grounds to charge Lord Levy and Miss Turner.

Mr Blair is the first sitting prime minister to be quizzed by police.

Lord Levy and Miss Turner were arrested over claims they tried to sell honours.

Sir Christopher was held over allegations concerning the abuse of the honours system.

All three deny any wrong-doing.