Excuse me while I chortle…

Lord Levy, the Labour fundraiser and one of the Prime Minister's closest allies, has been arrested and questioned over the cash-for-honours scandal.

Lord Levy, who made his millions managing singers like Alvin Stardust and Chris Rea, raised so much money for the Labour Party that he became known as "Lord Cashpoint".

"They will be in meltdown in Downing Street this afternoon. Lord Levy is personally identified with the Prime Minister. He bankrolled him while he was in opposition. Tony Blair made him a peer, appointed him his Middle East envoy. He is his tennis partner.

"Mr Blair and the then general secretary of the Labour Party were the only ones apart from Lord Levy who knew about the secret loans, and Lord Levy is at the apex of all of it.”

Andrew Pierce, of The Times

Forumula One boss Bernie Ecclestone was one of the most controversial donors to succumb to Lord Levy's appeal for cash.

Mr Ecclestone's £1 million donation had to be repaid by the party to avoid claims that the money had been used to buy policies. This was one of several controversies over donations secured by the peer.

Lord Levy's arrest follows allegations that he told a businessman he did not need to inform the committee vetting his Lords nomination about a £250,000 loan to the Labour party.

In a statement from his spokesman Lord Levy:

"Lord Levy has made it clear that he is ready at all times to co-operate with the police investigation.

"He therefore complied with a request to attend today at a police station where the police used their arrest powers, totally unnecessarily, apparently in order to gain access to documents that Lord Levy would quite willingly have provided without this device.”

Excuse the cut and paste from sources various, It’s hard to think, write and laugh at the same time. Blair has been adept at dodging the bullets to date, but it looks like this one might ricochet nicely in his direction.

He had managed to find a way of cutting Prescott loose with harming his own position, that move was imminent. He won’t feel quit so confident after this episode.