Prime Minister Tony Blair's chief fundraiser Lord Levy insisted last night he was innocent of any wrongdoing after his arrest by police investigating allegations of the sale of honours.
In a statement, a spokesman said Lord Levy had not been charged and did not expect to be. He accused police of using their arrest powers "totally unnecessarily".
The peer was arrested earlier yesterday and held in custody after being required to attend a police station in London.
He was later released on police bail "to a date in the future pending further inquiries", said police.
In a statement, a spokesman for Lord Levy said: "Lord Levy has made it clear that he is ready at all times to cooperate with the police investigation.
"He therefore complied with a request to attend today at a police station where the police used their arrest powers, totally unnecessarily, apparently in order to gain access to documents that Lord Levy would quite willingly have provided without this device.
"He has not been charged and does not expect to be, as he has committed no offence."
Lord Levy is at the centre of allegations that major Labour financial backers were rewarded with nominations for peerages and other honours - something the party strongly denies.