LONDON, Dec 14: In what is regarded as an unprecedented development, Prime Minister Tony Blair was questioned by the police on Thursday as part of the on-going criminal investigations into cash-for-honours allegations.

Started in March this year by the Metropolitan Police, the investigations are aimed at looking for a connection between peerage nominations by the Labour government and contributions to party funds by the nominated persons.

The inquiry is taking a dual approach; looking at the 2005 working peerages list and any offences in that period relating to the 1925 Honours (Prevention of Abuse) Act and the Political Parties, Elections and Referendum Act 2000, which covers party funding and the presentation of accounts.

The inquiry is in its last stages and is expected to conclude by January.

A spokesman for Mr Blair said the prime minister had denied that peerages had been offered for sale.

The prime minister was interviewed as a witness without the presence of a lawyer. The spokesman said that Mr Blair had explained to the police why four businessmen had been nominated for peerages, and insisted that giving money to a political party should not prevent someone from receiving an honour.