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The affair that began with Jack Dromey’s revelation about how Labour funded its 2005 General Election campaign – what ConservativeHome headlined as Labour’s Enron moment – increasingly looks like a dagger at the heart of New Labour.  Tony Blair’s chief fundraiser Lord Levy has been arrested and questioned about possible infringements of the laws governing the awarding of political honours.  How long before Tony Blair is himself implicated?

Guido: "It is going to get even bigger quicker than you might think."

Nick Robinson: "It doesn’t get much more serious than this."

Iain Dale: "Scotland Yard has confirmed that Lord Levy is being held in custody under the 1925 Honours Act and the 2000 PPERA Act. Downing Street is saying this is a "Party matter and nothing to do with the Prime Minister". Did the spokesman manage to keep a straight face? Let me remind you that Levy is a personal friend of Levy, he plays tennis with him, he goes to parties at his house, he appointed him as his official envoy to the Middle East and has a desk in the Foreign office."

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