The cash-for-honours affair may be nearing its climax after prosecutors said that they had “all the evidence we need” to decide whether to bring charges.

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 yesterday: “We have all the evidence we need to make a decision. The review of the evidence is ongoing.”

Last month Tony Blair was interviewed for the third time by detectives. On each occasion, the former Prime Minister – the first sitting Prime Minister questioned in a criminal inquiry – was treated as a witness.

Two of Mr Blair’s closest aides – Lord Levy, Labour’s chief fundraiser, and Ruth Turner, the former Director of Government Relations – and the millionaire party donor Sir Christopher Evans have been arrested in connection with the probe. All three deny any wrongdoing.

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

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

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