Tory in election cash row

The UKIP advocates Britain's withdrawal from Europe

A leading member of the UK Independence party has alleged it was offered a "financial inducement" by a Tory peer not to run candidates against certain shadow cabinet members at the general election.

Nigel Farage, a South East MEP, said he was approached in January in an attempt to get candidates to stand down in marginal constituencies.

We will not enter into special deals with anyone

Tory Central Office statement

A report in The Times newspaper alleges the Tory peer planned to set up a £2m fund to persuade UKIP members to refrain from standing against prominent eurosceptics.

Mr Farage said that a number of unnamed eurosceptic Tory MPs had been "interested in this project", although he insisted the initiative was a "private" one not sanctioned by Central Office.

The Conservative Party distanced itself from the allegations, saying the alleged offer was made on the peer's own account and had nothing to do with the party leadership.

Tory candidates would fight the election on leader William Hague's policy of "in Europe, not run by Europe", a spokeswoman said.

"We will not enter into special deals with anyone and we will not compromise our policies or principles over Europe," she added.

Nigel Farage says he was approached by Tory peer

The alleged fund was apparently considered after fears that the UKIP, which advocates Britain's withdrawal from the European Union, would split the anti-Europe vote and hand key seats to Labour.

The money would have been raised from a coalition of Tory sympathisers against the single currency.

According to The Times report, a list of 30 eurosceptic MPs was drawn up in the hope that they could be spared a challenge from the UKIP.

But the plans are said to have broken down when rumours of the list spread.

'Bribing' claim

Labour responded by calling on Mr Hague for an immediate explanation.

Labour's general election co-ordinator Douglas Alexander said the alleged offer amounted to one political party bribing another.

He said: "William Hague must immediately offer a full and total account of the actions of this party in relation to this offer.

"Bribing at a local or national level must not have any place in a democracy."