A COMMONS inquiry into claims that peerages were offered in return for loans to political party funds has been delayed at the request of Scotland Yard.

MPs on the Public Administration Committee were due to grill Chai Patel and Sir David Garrard over loans they made to the Labour Party totalling more than £3 million.

But, following a meeting last night with Deputy Assistant Commissioner John Yates, who is leading the police inquiry, the committee agreed to postpone the hearing in order not to prejudice possible police action.

The committee chairman, Tony Wright, said they had agreed to a brief delay to ensure that evidence sessions would not have "any impact at all on any proceedings they might want to bring".

He also stressed that the committee was determined to press ahead with its inquiry, and would be meeting police again after Easter to discuss the situation.