Abrahams pulls out of park scheme in County Durham

It is hoped the business park will provide up to 5,000 jobs

A property developer behind the creation of a £1bn County Durham business park says his involvement is a distraction - and is selling the land.

The so-called "donorgate" row was sparked after David Abrahams gave more than £650,000 in donations to Labour.

He said that connection three years ago, "albeit innocent", may have an adverse affect in finding investors.

The 540-acre Durham Green Business Park near to the A1 at Bowburn, is expected to bring up to 5,000 jobs to the area.

The land is in the process of being sold with outline planning permission.

Development company First Industrial is reported to be buying the site, though it is not yet clear what impact, if any, the sale will have on the future of the current plans.

'Behind the scenes'

Mr Abrahams said: "I am perceived to have a history of being involved in donations, albeit quite innocently, to the Labour Party.

"If that's going to stand in the way of firms coming to the region, I'm going to take a back seat and ensure that my personal problems do not stand in the way of bringing jobs to the region."

He said he would be prepared to give advice about the development from "behind the scenes" should it be required.

Mr Abrahams said any profit made from the sale of the land would be given to charity.

In 2007, Mr Abrahams gave more than £650,000 to the Labour Party using associates' names.

It sparked an internal inquiry into his party's funding - and prompted the Electoral Commission to call in the police.

However, The Crown Prosecution Service said there was insufficient evidence to bring any charges.