TWO government departments are to conduct an inquiry into whether John Prescott abused his position as a Cabinet minister in his two-year relationship with his diary secretary, Tracey Temple.

The Cabinet Office and Mr Prescott’s own Deputy Prime Minister’s department confirmed yesterday that they will look into the claims made by Ms Temple, who is still a civil servant.

Ms Temple, 43, who had a two-year affair with Mr Prescott, alleged that sexual encounters often took place in his private office with the door ajar while a team of seven civil servants worked outside.

Mr Prescott has accused her of exaggerating the details to make money from newspapers.

To add to Labour’s woes, Scotland Yard announced last night that a number of people in the “cash-for-honours” inquiry had been questioned under caution, although Downing Street said that the Prime Minister was not one of them. The interviews took place by arrangement and none of those involved was arrested.

Mr Prescott cancelled a planned meeting at Downing Street yesterday. The reason given was that his appearance threatened to become a media circus. Instead he spoke to Tony Blair by phone. Mr Prescott was also withdrawn from a series of broadcasts this morning to discuss the local election campaign, which he is supposed to be leading.

Peter Housden, the permanent secretary in Mr Prescott’s department, will also question the Deputy Prime Minister over the claims that Ms Temple was regularly chauffeur-driven from their sexual assignations in government cars.

Derek Conway, the Tory MP for Old Bexley & Sidcup, has written to Mr Housden demanding that the results of the inquiry be made public. “There has to be an official investigation into whether there has been an abuse of government cars,” he said.

Sir Gus O’Donnell, the Cabinet Secretary who is the most senior civil servant in Britain, will also talk to Mr Prescott to see if he has breached the ministerial code.

Mr Conway, in a letter to Sir Gus, wrote: “Ms Temple was assigned to duties in the minister’s private office at the department. As she had responsibilities in an employee’s subordinate role, what advice has been given to her by her civil service line manager about this matter? Have you considered this in relation to the ministerial code of conduct?”

The pressure was kept up on Mr Prescott in the Commons yesterday when Oliver Heald, the Shadow Secretary of State for Constitutional Affairs, said: “It would help the Government’s diversity agenda and the recruitment of women in the Civil Service if there was a civil service Act to protect them from being asked to do things which they do not consider appropriate.

“Do you think female recruitment and progression will be helped or hindered by recent revelations from the office of the Deputy Prime Minister?”

The Government’s political difficulties deepened with the confirmation that Lord Levy, Mr Blair’s personal fundraiser, is to be compelled to give evidence to the Public Administration Select Committee inquiry into whether there is any link between peerages and donations or loans to Labour.

Lord Levy had been due to speak to the committee yesterday but the hearing was postponed to give Scotland Yard more time to complete its own inquiry into allegations of corruption over honours.

The Serjeant at Arms, Westminster’s internal police force, would be ordered to arrest and escort any reluctant witnesses to Westminster for the hearing. Tony Wright, the Labour chairman of the committee, said: “In reality we hope that witnesses will come voluntarily but we do have the power to force them to come if they refuse.”

There were also signs yesterday that Mr Prescott would face a backlash from women in his own party when he returns to Westminster after Geraldine Smith, a Labour MP, accused him of “the worst sort of abuse of power”.

She said: “It’s as old as Adam; the male employer taking advantage of the young employee. It looks pretty appalling.

“It is taking advantage of a junior employee. Most women MPs will be alarmed by that.”

Despite Mr Prescott’s efforts to keep a low profile, Phil Woolas, the local government minister, said last night that the Deputy Prime Minister would be expected to play “a full and active part” in campaigning.

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