Cash for honours probe: Police have 'all the evidence needed'

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The Crown Prosecution Service asked Scotland Yard to conduct further inquiries after the original evidence file was handed over in April.

But a CPS spokeswoman insisted today: "We have all the evidence we need to make a decision. The review of the evidence is ongoing."

Last week, the Mail reported that two f Tony Blair's most trusted former aides were set to be charged over the affair.

Mr Blair's chief fundraiser Lord Levy, No 10 gatekeeper Ruth Turner and millionaire Sir Christopher Evans were expected to be informed of the decision to press charges some time this month. All three are on police bail.

The charges may also extend to an alleged attempt to cover up the affair.

Whitehall sources told the Daily Mail: "There is now almost an inevitability about it."

The prospect of three leading Labour figures going into the dock would deal a crushing blow to Mr Blair's reputation. He may also find himself called to give evidence in any trial.

It emerged last week that Tony Blair had been interviewed for the third time by detectives.

The former Prime Minister - the first sitting premier questioned in a criminal inquiry - was treated as a witness each time.

PM Gordon Brown moved to distance himself from the affair on Tuesday by announcing that the Government's legal officer will no longer have the power to direct prosecutors in individual cases.

The former Attorney General, Lord Goldsmith, had sparked controversy by insisting he had a constitutional duty to be involved in deciding whether to charge colleagues.

However, the new incumbent, Baroness Scotland, will play no role in determining the matter.