CPS says no charges in one honours arrest

The Crown Prosecution Service (CPS) has said there is "insufficient evidence" to bring charges against one of four people arrested in the cash-for-honours police investigation.

Des Smith, who helped the government find sponsors for the city academy programme, was arrested last April after telling an undercover reporter that such sponsors could expect to get an OBE, CBE or knighthood for their contribution.

The headmaster was the first person arrested by police investigating claims that political parties offered honours in return for secret loans, but today the CPS said he was no longer involved in the probe.

"Mr Smith's case concerned funding for city academies. It did not involve allegations concerning loans or donations to political parties. We do not expect any further evidence to come to light relating to him," it said in a statement.

"Although it is clear that Mr Smith made some indiscreet comments to an undercover journalist, his conversations did not provide evidence that he was trying to obtain funding for city academies in exchange for honours."

Mr Smith admitted he was naïve to make the comments, which were recorded during an undercover investigation by the Sunday Times early last year, adding that he was "desperately sorry" for the remarks.

At the time, Downing Street said it was "nonsense" to suggest that sponsors were being enticed to back the controversial city academy programme with the promise of honours.

Today's announcement by the CPS is the first indication of whether charges will be brought in Scotland Yard's investigation, which was originally dismissed as a PR stunt by most politicians in Westminster.

Three people other than Mr Smith have been arrested so far. Last week, Lord Levy, Tony Blair's chief fundraiser and personal envoy, was arrested for a second time, on suspicion of perverting the course of justice as well as the original arrest on corruption charges.

Ruth Turner, the prime minister's director of government relations, was also arrested on suspicion of both the perversion of justice and under the terms of the Honours (Prevention of Abuses) Act 1925.

In addition, Sir Christopher Evans, a donor to the Labour party, has also been arrested. All deny any wrongdoing.

Mr Blair has been questioned twice by police involved in the honours probe, an unprecedented position for a serving British prime minister, although both times this was as a witness, making it highly unlikely he would be charged.