Police investigating allegations that peerages were "sold" by political parties in Britain have arrested a man (60).
The BBC said the man was not thought to be a Lord or a Member of Parliament. The man was arrested by the Specialist Crime Directorate in the London borough of Redbridge this morning.
Neither the Labour Party nor opposition Conservatives made any comment about the arrest.
Scotland Yard has been investigating all political parties in Britain after a row broke out over claims that peerages were awarded to party donors. It began an investigation after several members of parliament asked them to look into possible breaches of the Honours law dating from 1925 that forbids selling public honours.
The row, which has damaged Prime Minister Tony Blair's reputation, broke out after Labour officials revealed the party had received nearly £14 million (€20 million) in loans from 12 businessmen, some of whom were later nominated for seats in the House of Lords.
Labour denied "selling" the peerages and dismissed allegations from political opponents that donors' companies got favourable government treatment in return for their support. As the row escalated, the Conservatives were also forced to reveal who had loaned their party money for last year's election campaign.
The Tories received a total of £16 million (€23 million) in loans. It later paid some of the loans back to donors who did not wish to have their names disclosed.
The Electoral Commission is also investigating the allegations.