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Monday, 1 January, 2001, 12:50 GMT
Labour under fire over £2m gift
![]() John Redwood: Labour's behaviour disgraceful
The Labour party is coming under increasing pressure to name the benefactor who has reportedly made a £2m donation just weeks before anti-sleaze laws on party funding come into force.
Conservatives have accused the government of "rank hypocrisy" in breaching the "spirit" of the new laws. But a Labour spokeswoman refused even to confirm that the money has been received. The anti-sleaze laws received Royal Assent in December after an inquiry by Lord Neill's watchdog committee on standards in public life.
All political parties will have to give details of donors and their gifts to a new electoral commission, which will then publish them, under the Political Parties Elections and Referendums Act. But the Home Office has said money paid in before February will not be examined. John Redwood, head of the Conservative parliamentary campaigns unit, called Labour's behaviour "disgraceful". "I find it absolutely extraordinary," he told BBC Radio 4's Today programme. "The fact that they won't defend the donation shows just how bad they obviously feel about what they are doing." "Have they received this donation? "If so, why can't they tell us where it comes from.
Labour's general election manifesto promised that the party would "clean up politics, decentralise political power throughout the UK and put the funding of political parties on a proper and accountable basis". But the government faced criticism when it was revealed Formula One boss Bernie Ecclestone had given Labour £1m in 1997 before the May election. It was alleged the gift, one of the biggest single donations to a British political party, influenced the government's decision to seek an exemption for Formula One from a European tobacco advertising ban. Labour followed Lord Neill's advice and returned the money. Shadow cabinet office minister Andrew Lansley said: "They have previously been forced to take Lord Neill's advice on accepting large donations - it would be interesting to know whether that advice was sought in relation to this donation."
A wealthy businessman is said to be behind the latest £2m gift. But a Labour spokeswoman said on Sunday : "The party does not comment on any individual donors." She added that everyone donating more than £5,000 will be named in the party's annual report - but it will not reveal the precise amount. "Labour has been at the forefront of the disclosure of political donations and we are proud of our record," the spokeswoman concluded.
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