Goldsmith fails to gag new cash-for-honours story

Attorney General Lord Goldsmith failed in a legal bid to stop publication today of fresh information surrounding the cash-for-honours investigation.

A judge refused to grant an injunction to stop The Guardian printing a story suggesting Lord Levy may have attempted to influence the evidence of senior Downing Street aide Ruth Turner.

Lord Goldsmith secured an injunction on Friday blocking the BBC from running a news item which the police had said could "impede their inquiries".

Its terms were later relaxed to allow the BBC to report that Ms Turner was the author of the document and that it concerned Tony Blair's chief fund raiser.

But The Guardian went further today, suggesting detectives were examining whether Lord Levy had attempted to "shape" her evidence to the inquiry.

The paper claimed detectives were investigating a meeting between Ms Turner and Lord Levy last year, an account of which the Downing Street aide gave to her lawyers and which has been given to police.

In a joint statement, the Attorney General's office and Scotland Yard said: "We were made aware late yesterday evening that the Guardian newspaper was planning to run an article which gave us cause for concern.

"We sought to obtain an undertaking from them that they would not run aspects of the story. They refused so we sought an injunction which was refused on the grounds that the newspaper had already been printed."

Lawyers acting for the newspaper argued such a move would be "highly unusual" when no charges had been brought.

In a statement on their website the paper said: "The judge said the case was finely balanced but she refused to accede to the Attorney's request, saying that the story was already in the public domain because it was already being printed."

Editor Alan Rusbridger added: "The Guardian was given a significant story about the cash-for-honours inquiry which we checked both with Lord Levy and with the police.

"The story was well-sourced and clearly in the public interest. In this country there is a well-established principle that the state cannot exercise prior restraint on newspapers."

Downing Street - which had earlier denied suggestions that it had leaked information about the inquiry - said it would not comment.

The Metropolitan Police said: "We are concerned that these matters are being aired publicly as we believe it has the potential to undermine the investigation."

Both Downing Street and the Crown Prosecution Service yesterday denied leaking information relating to the cash-for-honours inquiry.

Both took the unusual step of putting on record that they were not behind any recent leaks.

Prime Minister Tony Blair's official spokesman said suggestions that No 10 was behind any leak were "just plain wrong".

It came after The Sun reported that it had been asked for similar legal assurances that it would not publish information.

One report had suggested police feared a leak from No 10, designed to scupper the Scotland Yard investigation.

But Mr Blair's spokesman said today: "Suggestions that we leaked or were trying to leak this information are just plain wrong - and that's not based on my personal hunch, it's because there are inaccuracies in reports which mean it can't have come from No 10.

"I can't get into what those (inaccuracies) are because our approach all the way through is we are against all leaks and speculation."

Asked about the Guardian story, a spokesman for Number 10 referred back to those comments.

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