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In Series 1 Episode 8 of Ashes to Ashes, Gene Hunt gains possession of a video tape which reveals the truth about the car bombing of Tim and Caroline Price.

Acting out of compassion for the childhood version of Alex Drake, he destroys the tape. At this moment the adult Alex Drake gives a warning about the blackmail that will ultimately result from this act.

ALEX: I'm the piece of his past. Or I will be. He'll be blackmailed by Layton for not telling the truth.

What is the nature of that blackmail and how does it relate to the events of Series 1 Episode 1, in which Alex Drake is taken prisoner and then shot by Arthur Layton?

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From the script of Episode 1 Series 1:

EXT. THAMES - RIVER BOAT - DAY 1. 0904 9
LAYTON pushes ALEX along a rusted gangplank towards the
flaking hulk. The horizon across the river is dominated by
the Millennium Dome.
LAYTON
You’re my ticket out, Alex.
(using her mobile)
Hello, remember me? Layton ... Yeah
... I got a piece of your past here
so you’re gonna have to listen ...
Tim and Caroline Price’s daughter.
ALEX
How did you know my parents?!
LAYTON
And I’m gonna tell her the truth
about how they died .. And your
life’ll be in ashes mate ... So now
we talk about how you get me out of
this mess. Think about it.

So Arthur Layton is using his secret knowledge about the deaths of Tim and Caroline Price as leverage on a third party (probably Evan). That secret was concealed in 1981 when Gene and Evan agreed to destroy the video tape.

Layton's blackmail bid fails, however. No help is forthcoming.

Phone rings. LAYTON snaps it open. Listens. His smile falls -
this is bad news.
LAYTON
Okay .. That’s a pity ... hmmmm .. 
Right ... 
ALEX watches his gun hand drop limply. She senses a
resolution. Moves forward.
ALEX
It’s over. Give me ...
LAYTON 
Fine ... 
AND HE LIFTS HIS GUN AND SHOOTS HER IN THE HEAD.

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