Cash-for-honours: Levy re-bailed as cost of probe soars to £750k

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The development came as it emerged that the probe into the cash-for-honours affair has cost more than £750,000 so far.

The sum, which includes staff salaries, overtime, equipment and expenses, was disclosed by police following a Freedom of Information request.

According to Scotland Yard, the investigation - codenamed Operation Ribble - had overall costs of £773,177 between March 27, 2006, and April 30 this year.

Lord Levy and Ms Turner - identified by police only as "Man B" and a "female" - returned bail today and were re-bailed, Scotland Yard confirmed.

Evidence gathered by detectives during a 13-month inquiry into the "cash-for-honours" affair was handed to the Crown Prosecution Service in April.

Prosecutors are now assessing the information gathered before deciding whether charges should be brought.

Labour party backer Sir Christopher Evan - the third person on police bail in relation to the inquiry - returned and was re-bailed yesterday, Scotland Yard added.

All three, who deny any wrongdoing, were arrested in connection with alleged offences under the Honours (Prevention of Abuses) Act 1925.

Lord Levy and Ms Turner have also been questioned in relation to allegations concerning conspiracy to pervert the course of justice.

Altogether 136 people, including the Prime Minister, were questioned either as witnesses or suspects during the police investigation, and 6,300 documents passed to prosecutors.

The investigation was launched in March last year following a complaint by Scottish National Party MP Angus MacNeil.

It followed the disclosure that the House of Lords Appointments Commission had blocked the award of peerages to four wealthy Labour backers who gave undisclosed loans to the party in the run-up to the 2005 general election.

The inquiry was subsequently widened to cover loans made to the Conservative Party.