Brown in clear over donations as Yard focus on Labour staff

Detectives handed over a file to the Crown Prosecution Service this afternoon - which indicates they have evidence of illegal conduct relating to gifts from tycoon David Abrahams.

However, neither the Prime Minister nor Tony Blair were interviewed by detectives, which suggests they are in the clear and more junior figures, if any, are at the centre of the findings.

In a statement the Met said: "The Metropolitan Police Service have today passed to the CPS the main file of evidence in relation to the investigation into potential breaches of the Political Parties, Elections and Referendums Act 2000 as a result of donations made through intermediaries.

"It is now a matter for the CPS to consider the evidence, advise us on whether any further enquiries are necessary and whether any charges should be brought."

The handing over of a file does not mean prosecutions will take place. On a matter of such great public interest, the police would normally wish to involve the CPS at an early stage.

Former Labour Party officials were seen as the most likely focus of the investigation and the CPS will have the final say over any prosecutions.

The probe was launched after revelations that Labour accepted at least 19 gifts totalling £663,976 from property tycoon Mr Abrahams who gave the cash via middlemen to conceal his identity. The go-betweens were secretary Janet Kidd, builder Ray Ruddick and solicitor John McCarthy.

Such concealment breached Labour's own funding laws which say the identity of big donors must be published.

The hidden gifts were said to have begun under former Labour general secretary Matt Carter, while Tony Blair was party leader. His successor Peter Watt admitted knowing about the gifts and was forced to resign.

Mr Brown knew nothing about the arrangements, he said at the time.

The affair threatened to envelop a string of senior figures last autumn, including Mr Brown's new fundraiser Jon Mendelsohn who had written to Mr Abrahams. Harriet Harman received a £5,000 donation to her deputy leadership campaign from Mrs Kidd, but said she had no idea the tycoon was the true source of the money.

The disclosures indirectly led to the resignation of Peter Hain for failing to make proper declarations about campaign donations from business people.

It was reported this year that Mr Abrahams and his go-betweens had been cleared by the police.