UK's Blair faces political grilling amid probe fever

LONDON, Feb 6 (Reuters) British Prime Minister Tony Blair faces a marathon grilling in parliament on Tuesday as speculation mounts over the potential impact of a police probe into alleged illegal political funding on his resignation date.

Blair will answer questions from lawmakers on the cross-party Liaison Committee for the final time in a session that starts at 0300 hrs IST and could run for three hours.

He is widely expected to hand over power to his presumed successor finance minister Gordon Brown in July at the latest after a decade in office. He could announce his departure plans weeks earlier, perhaps immediately after May 3 elections for the Scottish parliament, Welsh assembly and local English councils.

Lawmakers on the committee, which comprises the chairmen of all select committees in parliament's lower house, declined to discuss their line of questioning but the twice-yearly grilling is expected to touch on his departure plans.

They are also expected to question him on government policy on Iraq, Iran and the West East as well as domestic issues such as education and health reform.

Blair has refused to name his exit date although he has said he will go before the end of the summer.

But the inquiry into whether political parties awarded state honours that come with seats in parliament's upper house to businessmen in return for loans -- a practice that is against the law -- has fuelled talk of an earlier resignation or at least a swift announcement on his departure date.

Blair has been interviewed twice by police as a witness, not a suspect, becoming the first serving British prime minister to be questioned in a criminal investigation.

Several close aides have been arrested, to be later bailed, and police have widened their questioning to include a possible cover-up.

Many ruling Labour Party parliamentarians -- aghast at the scope of the police probe -- agree that if someone close to Blair is charged, the premier would have to leave immediately.

''If someone is banged up, then everything changes,'' said one Labour parliamentarian.

Reuters SRS VP0610