TONY BLAIR’S personal fundraiser organised a further series of secret loans of £3 million to £4 million shortly before last year’s general election, the most expensive in its history, The Times can disclose.

The money, negotiated by Lord Levy, the former accountant known at “Labour’s chequebook”, is in addition to the £4.5 million from three businessmen whose nominations for peerages have been blocked by the Lords Appointments Commission and which have triggered the current furore.

The Labour Party could not say last night whether the lenders were in line to be nominated for peerages and knighthoods. Mr Blair admitted yesterday that he had known about the loans that had come from the three men when he nominated them for peerages.

However, this news apparently has come as a surprise to Jack Dromey, the party treasurer. He prompted a political storm by claiming that he had been kept in the dark by Downing Street.His intervention provoked bitter political infighting yesterday and fuelled claims that moves were under way to force Mr Blair from office earlier than he intends.

The decision by the treasurer to time his outburst just before Mr Blair was due to face critical Commons votes has led to accusations that he was trying to help the leadership cause of Gordon Brown.

In the mood of intrigue that surrounded Westminster and Whitehall it has even been suggested by some “ultra-Blairites” that the Chancellor had put Mr Dromey up to it. One said that his criticism of the loans in a series of broadcasts on Wednesday was a “dagger at the heart” of Mr Blair. Another said that it was the first shot in a civil war aimed at ousting Mr Blair.

Mr Brown’s supporters reacted angrily to the claims. One aide said that it was “the usual preposterous, anonymous garbage”. The Brown side also angrily denied any suggestion of contacts between the Chancellor and Mr Dromey, saying that Mr Brown had spent all his spare time this week trying to win round rebels to the education Bill.

Mr Blair himself was furious that he had been sidetracked on to the subject of party funding on the day that he intended to react to his education Bill victory by charting Labour’s future course. But he tried to defuse the row with a string of announcements aimed at future changes in the honours system, party funding and the policing of ministerial interests after the Tessa Jowell row.

He has put the state funding of political parties back on the agenda by announcing that an independent figure will be appointed to start talks between the parties on a way forward. Labour swiftly announced that it would declare all future commercial loans in a move to pre-empt further criticism.

Mr Blair also performed a U-turn by announcing that an independent person will in future advise ministers on conflicts of interests and take over from the Cabinet Secretary in any investigations required.

Finally Mr Blair said that he was ready to take himself out of the twice-yearly honours list system by renouncing the right to nominate people. However, he made plain that the system of nominating working peers, which has led to the present row, will be kept, pending the final stages of Lords reform and the achievement of a consensus between the parties.

While Downing Street has pledged that in future all loans will be disclosed to the Electoral Commission, the other loans that have just come to light are not covered by that commitment.

The transactions discovered by The Times will be included in Labour’s annual report for 2005, which has yet to be signed off by the party’s auditors. Mr Dromey was not told about the latest tranche.

A Labour Party source said: “I am not sure of the total but I am told there is a further £3 million to £4 million in loans in addition to the other ones in the public domain. I do not know if they have been nominated for honours.”

Barry Townsley, a financier, who made a £1 million loan, Sir David Garrard, a property developer and former Tory donor who made a £2 million loan, have both voluntarily withdrawn their names from the peers’ list. Chai Patel, the founder of the Priory clinic, who made a £1.5 million loan, is still fighting to have his peerage confirmed.

The funding row dominated Mr Blair’s monthly press conference. He said: “There is public concern and that is why it is sensible to then go and complete the reforms.”

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