Blair: More trouble

London, April 22: A secret long-term strategy by New Labour to lure and reward major party donors, which culminated in the cash-for-honours scandal, was exposed today.

A document, obtained by The Sunday Telegraph, discloses that Tony Blair, Lord Michael Levy (Labour’s chief fund-raiser) and Jonathan Powell were at the centre of a “cash-for-access” policy to raise millions of pounds from the moment the party came to power in 1997.

It lays out in detail a strategy that would lead to a 13-month police inquiry and the arrest of some of the most senior figures in the Labour hierarchy.

The emergence of the document is deeply embarrassing for the government, coming two days after detectives submitted their final report from the cash-for-honours investigation to the Crown Prosecution Service (CPS). The CPS will decide who, if anyone, should face criminal charges.

Up to five people could be prosecuted and the UK Prime Minister may be called as a witness at an Old Bailey trial.

The report refers to the need for “creating a reason to give” money to the party and stresses the importance of the Prime Minister having “private meetings” with substantial donors. It also tells of the need to “flatter” the desire of donors to offer policy advice.

The report was written by Amanda Delew — an ally of Levy — who was head of Labour’s high-value fund-raising programme for five years.

Entitled Post Election Strategy for High Value Donors, it was written after Blair swept to power on the back of his party’s relentless criticism of Tory sleaze. Within months, Blair was boasting that his government would be “purer than pure”.

Short extracts from the document were leaked almost a decade ago, but the full text can now be revealed for the first time. It says: “The support of both Tony Blair and Jonathan Powell (his chief of staff) is critical.... Major donors need to feel they are at the centre of things. Tony Blair... must continue to have private meetings with some of the more interesting supporters.

“Major donors expect to be invited to No 10, if this cannot take place then income levels may be affected.”

The strategy outlined in the document shows how Labour blurred the vital distinction between the government and No 10, and the Labour Party itself. Blair, Levy and Powell have been placed at the heart of the police inquiry into whether New Labour offered honours in return for secret loans totalling £14 million from 12 businessmen to fight the 2005 general election. The alleged offences relate to a breach of the 1925 Honours Act and to perverting or conspiracy to pervert the course of justice.

It can also be revealed that the CPS is considering more charges than originally thought. Sources close to the investigation said detectives were pushing for two charges each against some, or even all, of the five main suspects, including three senior Downing Street aides.

When extracts first appeared, David Hill, then Labour’s chief spokesman, said: “This document was naively written... no one who gives money to the party is given preferential treatment and no one can buy access to Downing Street.” Last night a Labour Party spokesman said: “Since then, absolutely nothing has changed.”