According to media reports, the chief fundraiser for Prime Minister Tony Blair's Labor Party, has been arrested by police probing allegations state awards had been given in return for cash. The "cash for favors" debacle has dented Blair's standing in opinion polls and the arrest of Lord Levy will make the prime minister's position even more precarious. The Labor Party came under pressure after some businessmen were nominated for seats in Britain's unelected upper house of parliament after lending about $26 million. However, that goes against a 1925 law that made selling seats in the upper chamber, known as the House of Lords, illegal.
David Davis of the opposing Conservative Party told Sky News said, "The issue here is one of corruption. Has cash or money been paid over in exchange for some sort of benefit? I think it must be pretty worrying for the top ranks of the Labor Party." With the latest arrest and with the investigation of Blair's deputy, there have been calls for him to step down as prime minister sooner than later. John Prescott, Blair's deputy, is under investigation for his links to an American billionaire hoping to open a London casino.