Prosecutors say no charges in UK political probe

LONDON, July 20 (Reuters) British prosecutors announced today they would not file charges after a 16-month police inquiry into alleged political corruption that overshadowed former Prime Minister Tony Blair's last months in office.

The decision is a boost to the ruling Labour Party and to new Prime Minister Gordon Brown.

The probe into party funding tarnished Labour's image and some analysts believe it contributed to pressure from the party for Blair to step down early last month after a decade in power.

''I have decided there is insufficient evidence to provide a realistic prospect of conviction against any individual for any offence in relation to this matter,'' Carmen Dowd, head of the Special Crime Division at the Crown Prosecution Service, said in a statement read to cameras.

Detectives have been investigating since March last year whether political parties nominated people for state honours that come with seats in parliament's unelected upper house, the House of Lords, in return for cash.

Blair was questioned three times as a witness, the first serving prime minister quizzed in a criminal investigation.

He was one of 136 people interviewed in the probe which expanded to examine whether there had been a conspiracy to obstruct justice.

Blair, recently named special envoy by the Quartet of Middle East peace mediators, said he had always expected the probe to end in this way.

''Those involved have been through a terrible, even traumatic, time,'' he said in a statement. But he said the police were right to carry out a thorough investigation.

POLICE CRITICISED Some politicians have criticised the length of the police investigation, which cost around one million pounds (2.05 million dollar).

John Yates, the police commander in charge, defended the probe, saying: ''With allegations such as these, which were of the utmost seriousness, the investigation must be thorough and meticulous in every respect.'' Members of Blair's former inner circle voiced relief.

Lord Michael Levy, Blair's former chief fundraiser who had twice been arrested and bailed, said he was ''sincerely delighted and relieved to put this fully behind me''.

He said he had been disappointed by leaks to the media during the investigation which he called ''misleading, factually inaccurate and personally damaging to me'' and he said he hoped the probe would not put people off getting involved in politics.

Ruth Turner, a former top Blair aide arrested in January on suspicion of perverting the course of justice, said it had been a very stressful time. ''I am now looking forward to getting on with my life,'' she said in a statement.

The third person arrested and bailed was Christopher Evans, a biotechnology tycoon and wealthy Labour Party backer. None was charged and all denied wrongdoing.

Brown, speaking in Paris before the announcement, said he hoped the prosecutors' decision would end months of speculation.

''We should move ahead to try and get a better system of political funding in our country,'' he said after talks with French President Nicolas Sarkozy.

The decision is good news for Brown, who has taken the lead in opinion polls since replacing Blair and whose party held on to two parliamentary seats in by-elections yesterday.

The funding scandal led to a drop in donations to Labour and Brown must rebuild party finances before the next general election, which is expected in 2009 but could be held sooner. It also fuelled calls for reform of the House of Lords.

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