End of investigation greeted with relief and recrimination

Tony Blair and his allies have reacted with a mixture of relief and anger after the Crown Prosecution Service confirmed that no charges would be brought over the "cash for honours" affair.

Mr Blair, whose last 15 months as prime minister were dogged by Scotland Yard's investigation into whether four Labour financial backers were offered peerages in return, said it had been a "terrible, traumatic time" for people questioned by the police.

As an inquest began into the 16-month, £1m inquiry, John Yates, an assistant commissioner, defended the police amid frustration and surprise at the Yard that the CPS did not press charges. He admitted it had been "an uncomfortable time" for many of those questioned, but insisted: "With allegations such as these, which were of utmost seriousness, the investigation had to be thorough and meticulous."

But there was Labour anger that the police had taken so seriously a complaint by the Scottish National Party (SNP), which Labour MPs dismissed as a "political stunt". Labour figures accused the police of persistently leaking details of the inquiry and seeking evidence of a "cover-up".

Mr Blair, the first sitting prime minister to be questioned during a criminal investigation, was "very pleased" that no one would face charges. He said: "I want to make it clear that I level no criticism at the police. They were put in an invidious position by the SNP."

John McTernan, Downing Street's former director of political operations, who was questioned under caution, did not feel "vindictive" towards the police but criticised the "running commentary" in the media and wished it had taken 16 weeks rather than 16 months.

The Blair camp was most angry about the treatment of Ruth Turner, No 10's former director of government relations, who was arrested in a dawn raid at her home on suspicion of perverting the course of justice. Denis MacShane, a Labour MP, said people were put through "the most impossible torture".

Yesterday, Ms Turner spoke of her "ordeal" and her "enormous relief" . She said: "Although I was confident I had done nothing wrong, it has been a very stressful time for me and my family. I know that, however difficult for me personally, the police had an obligation to investigate these allegations thoroughly, and I co-operated with them fully. I am looking forward to getting on with my life."

There had been persistent speculation that Ms Turner, Lord Levy, who was Labour's chief fundraiser, and Sir Christopher Evans, who lent Labour £1m, would be charged. A beaming and "relieved" Lord Levy said it was up to others to judge the police, but added: "I have been disappointed by the constant leaks to the media, which have been misleading, factually inaccurate and personally damaging to me."

Sir Christopher said: "I understood that the investigation had massive political ramifications and that this put everyone involved under huge pressure."

Angus MacNeil, the MP who initiated the investigation, said there had been "enormous political pressure" on the police to throw in the towel. "It simply beggars belief that the police and the CPS both believe that no charges should be brought," he added.

Carmen Dowd, who heads the CPS's special crime division, said: "Having considered all of the evidence I have decided that there is insufficient evidence to provide a realistic prospect of conviction."

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