COPS TO PRESS CHARGES IN CASH-FOR-PEERAGE PROBE.

TONY Blair was dealt a fresh blow yesterday when police revealed they expect to bring charges in their peerages-for-loans probe yesterday.

Prosecutors will be sent an "initial" file in the autumn, Scotland Yard said.

It could mean more embarrassment for the PM as Labour's annual conference kicks off in September. Tories could also face charges.

It is a crime to offer or receive an honour in return for a favour. No 10 refused to say whether Blair has been quizzed over claims that backers were rewarded with peerages.

But police have broadened their inquiry to look at support for the PM's flagship independent schools policy, plus secret loans to political parties.

One man has already been arrested and others interviewed under caution.

Deputy Assistant Commissioner John Yates said his officers were following a string of leads and documents obtained by them were said to include "significant evidence".

MPs last night suspended their own inquiry to avoid impeding the criminal investigation.

Tony Wright, who headed the Commons committee, said: "It's pretty clear some of the witnesses we have identified are very much in the frame as far as the police are concerned."

Those witnesses are thought to include Blair's personal fundraiser

Lord Levy. He brokered loans from four big donors - Priory clinic boss Chai Patel, property tycoon Sir David Garrard, banker Barry Townsley and curry king Sir Gulam Noon - who were later nominated for peerages.

They were blocked by the Lords Appointments Committee.

Lord Stevenson, the Committee chairman, has told MPs that in some cases, it seemed honours had only been proposed because of the money.

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FUNDS: Lord Levy