16-month cash-for-honours inquiry 'to end today with no-one charged'

Four people were arrested - including two close aides of Tony Blair- during the 16 month investigation into whether honours were sold and if a cover-up followed.

But it is understood the Crown Prosecution Service will announce today that no-one will be charged with any offences.

Last night a apokeswoman for the CPS, which is responsible for deciding on charges, refused to comment on the report, insisting: "The decision-making process is on-going."

An end to the inquiry will be a huge relief to the Government and the Labour party. The allegations hung over Mr Blair's last year in office.

The probe was launched after Angus MacNeil, the SNP MP alleged that four wealthy individuals had been nominated for peerages after lending large sums of money to the Labour party, boosting their 2005 general election campaign.

During the inquiry, Tony Blair, the former Prime Minister was questioned three times by detectives, always as a witness, not a suspect.

Lord Levy, Mr Blair's personal fundraiser, Ruth Turner, a Downing Street aide, and Sir Christopher Evans, a biotech tycoon who lent Labour 1m, were all arrested.

They remain on police bail.

In Februaury the CPS announced there was insufficent evidence to change Des Smith, who advised the Government on its academy school programme.

As the Metropolitan Police investigation progressed, inquiries were widened to cover loans to the Conservative Party.

Last night Angus MacNeil said he would continue his campaign to establish what happened in the cash for honours allegations.

"This is corruption and the message it sends out is that the UK is not a wholesome place.

"The key question is what did the police recommend to the CPS when they finished investigating. That has to be established. No-one knows on what basis the CPS arrived at their decision. Perhaps if it is not clear cut enough it should be left to twelve good men and true to decide.

"Another important question raised here is exactly how the CPS, which would see itself as the most eminent justice organisation in the country, does its business. The investigation took 16 monhts, 6,300 documents were handed over by the police to them, yet this is the outcome. Now it seems all a bit strange and like a wild goose chase.

"I don't want to see any individuals jailed but I want to find out precisely what took place. We now have this rather odd situation where politicians are talking about public funding for political parties but trying to ignore private funding.

Mr MacNeil said the outcome might dent the first days of Gordon Brown's premiership reminding the public of Tony Blair's legacy of political sleeze.

"Hopefully the general public will see that the political culture has changed but there is the risk they might look at Mr Brown as being involved in this decision in some way. Personally I don't think he was and my advice to him and all politicians would be to steer clear - politicians shouldn't be involved in justice and the judiciary."

Mr MacNeil added that the scandal, coupled with the Hutton inquiry and the Saudi arms deal had tarnished the UK's reputation worldwide.

CASH FOR HONOURS CAST LIST

TONY BLAIR: Denies offering peerages for cash after four people he nominated for honours made loans to the party.

JOHN MCTERNAN: Director of political operations for Tony Blair and helped draw up names for honours. Questioned twice, once under caution. Denies wrongdoing.

ANGUS MACNEIL: SNP MP made the complaint which sparked the police inquiry.

DES SMITH: the first person to be arrested . The head teacher helped find sponsors for the government's flagship city academies programme. The CPS said there insufficient evidence to charge him.

LORD LEVY: Dubbed Lord Cashpoint, he was Labour's fundraising chief and arrested twice in the course of the investigation. Denies any wrong doing.

JONATHAN POWELL: Tony Blair's chief of staff. Believed to have been interviewed twice by police, the second time under caution.

RUTH TURNER: former Director of government relations, the first Downing Street official arrested. Denies any wrongdoing.

SIR CHRISTOPHER EVANS: Lent money to Labour, the biotech tycoon was shocked when he was arrested and questioned.

JACK DROMEY: Labour Party treasurer, prompted an internal probe into party finances claiming he was kept in the dark about loans.