Smash hit

David Blunkett, the former Home Secretary, today denounced the arrest of Lord Levy and called for detectives to be "thorough rather than theatrical".

But Dr Wright, the committee chairman, said that Mr Yates had "strongly repudiated" suggestions that the arrest of Lord Levy was a symbolic move. Dr Wright said: "I come away from it [the briefing] thinking there was a very serious investigation going on." He added however that it was not clear yet whether it would lead to any prosecutions.

Mr Yates told the committee that Lord Levy’s arrest yesterday had been part of the normal procedures that he would have followed in any investigation to make it easier for inquiries to proceed.

Dr Wright said that Mr Yates said he felt that he had to arrest Lord Levy because he "required the powers that go with arrest for the things that he wanted to do".

There was no indication that Lord Levy had sought to deny police access to documents, but arresting him had simplified the process of obtaining them, he suggested.

Lord Falconer of Thoroton, the Lord Chancellor, today called on people to let the police investigation take its course. He told the BBC Radio 4 Today programme: "I’m quite sure there will be a thorough investigation. I’m quite sure that Lord Levy will co-operate with it. We must await the results of the investigation."

Lord Falconer repeatedly refused to say whether he had provided guidance to the Prime Minister on how to respond to any police questions as the speculation intensified that he too would be interviewed by Mr Yates. "I am not going to comment at all about the investigation," said Lord Falconer.

Downing Street said today that there had not been an approach from the Metropolitan Police to interview Mr Blair. The Prime Minister’s official spokesman said: "The answer to that is no."

Asked if Mr Blair retains full confidence in Lord Levy as his Middle East envoy, the spokesman replied: "Lord Levy remains the Prime Minister’s envoy and that speaks for itself."

Dr Wright, the committee chairman, has disclosed that Lord Levy and some of the other three Labour lenders whose nominations for peerages were blocked had asked to be allowed to go before the committee to give their version of events.

Dr Wright said: "Lord Levy, and indeed some of the other names that are figuring at the moment, have actually been asking to come and give public evidence to us, which obviously indicates that they feel they are in the clear."

Police were "still working on" the people who have declined to answer questions.

A Scotland Yard spokesman declined to name Lord Levy but said a man had been arrested in connection with alleged offences under the Honours (Prevention of Abuses) Act 1925 and Political Parties, Elections and Referendum Act 2000.

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