Blair rejects calls to resign

Prime Minister Tony Blair has rejected calls for him to resign over the cash-for-honours affair.

Speaking to BBC Radio 4's 'Today' programme, Mr Blair said that he intended to "get on with the job" in spite of the on-going police investigation.

The Prime Minister also said that he would answer questions about the investigation once it was completed.

Mr Blair was speaking after it emerged that he had been questioned for a second time over cash-for-honours allegations.

This news followed the revelation that Lord Levy, the Labour's party chief fundraiser, had been arrested for a second time.

The peer, who is the Prime Minister's envoy to the Middle East, was first arrested last July. However, this time he was arrested on suspicion of conspiracy to pervert the course of justice. He was not charged and was later released on bail.

Another senior aide to Mr Blair, Ruth Turner, was also recently arrested on the same charge. She was also released without charge. Both have denied any wrongdoing.

Senior Labour party figures, including party chairman Hazel Blears and former leader Neil Kinnock, have expressed concerns that the affair is damaging the government.

Speaking on BBC 2's 'Newsnight' programme, Ms Blears said that the affair had "overshadowed" the party's domestic agenda, while Mr Kinnock warned that it would take "years" to recover from the damage caused by the inquiry.

Speaking on BBC 1's 'Question Time' programme, Justice Minister Harriet Harman said that the affair had "eroded trust".

Earlier this week, David Cameron called on Mr Blair to stand down as Prime Minister "in the national interest".

Speaking on Thursday, Liberal Democrat chief of staff Edward Davey warned that the inquiry would "haunt Tony Blair throughout his last months in office and beyond". However, Mr Davey added: "What is important at this point is that Labour MPs stop sniping at the police from the sidelines and allow them to continue to do their job professionally."

Mr Blair is not expected to step down as Prime Minister until later this year.

The cash-for-honours investigation was sparked last year by complaints from Scottish National Party MP Angus MacNeil and Plaid Cymru parliamentary leader Elfyn Llwyd, who claimed that peerages were being awarded to those who made large donations or loans to the Labour party. It then emerged that a number of secret loans had been made to the party before the 2005 general election and that some of those responsible had later been nominated for peerages.

The investigation was later widened to cover the other main political parties.

A number of people have been questioned in the course of the investigation, including Mr Blair and former Conservative leader Michael Howard.

However, no-one has been charged and all those involved deny any wrongdoing.

(KMcA)