Political leaders steered well clear of the honours list yesterday after a period in which the system has taken a battering from the loans-for-peerages row that has embroiled Tony Blair and many senior aides.

The rock star Rod Stewart and Zara Phillips, the Queen’s granddaughter, are among the recipients from the world of showbusiness and sport in a generally uncontroversial list.

Even so, the appointment of John Scarlett, chief of the Secret Intelligence Service, as a Knight Commander of the Order of St Michael and St George, seems likely to anger critics of the Government’s involvement in the Iraq War.

Sir John’s evidence during the Hutton inquiry into the death of the government scientist David Kelly was crucial to the case for war and his appointment to his post was criticised at the time by the Liberal Democrats and the Conservatives. The award, however, is one that would be expected for the holder of that post.

The main parties spurned the opportunity to nominate MPs or other figures for awards below peerages, including knighthoods and CBEs. Labour has not used the list for political awards for many years.

Mr Blair renounced his personal right last March to nominate individuals to the list.

In another change, the Cabinet Office took charge of releasing the names, the first new year list that has not been put out by Downing Street. David Cameron and Sir Menzies Campbell would be able to write in support of names to the Cabinet Secretary if they wished, but did not do so.

Rod Stewart has entered his fifth decade as one of the leading rock performers in the world and has sold more than 200 million albums and singles. He is appointed CBE.

Zara Phillips, who this month was voted BBC Sports Personality of the Year, is appointed MBE for services to equestrianism. It is the first time that a senior royal has been included in the new year list.

Gareth Edwards, the Welsh rugby legend, becomes a CBE. Ian Woosnam, who led the successful European Ryder Cup team this year, is appointed OBE. Steven Gerrard, the England midfielder and Liverpool captain, is appointed MBE; David Davies, former executive director of the FA, becomes an OBE. Faye White, captain of the Arsenal ladies team and England, becomes an MBE, as does Ricky Hatton, who is undefeated as a welterweight and light welterweight boxer.

In entertainment the actor and comedian Hugh Laurie becomes an OBE. Penelope Keith, best known for her portrayal of aristocratic characters in the television series The Good Life and To the Manor Born, is appointed CBE. Ann Leslie, of the Daily Mail, becomes a dame. John Wood, the veteran Shakespearean actor, is appointed CBE.

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