Resign call over donation 'lies'

Mr Blair and Mr Brown are both under pressure

The Conservatives are calling for the resignation of Gordon Brown after allegations that he and Tony Blair lied over a £1m donation to the Labour Party.

They are demanding an inquiry and have asked the standards watchdog, Lord Neill, to investigate whether he was misled over the donation, made by Formula One chief Bernie Ecclestone.

The chancellor of the exchequer must resign or the prime minister must sack him

Michael Portillo

Labour said the claims were "totally without foundation" - although a spokesman for the chancellor has said Mr Brown was aware that a gift had been made when he gave a radio interview in which he appeared to deny any knowledge of it.

But he added that Mr Brown "categorically denies" having lied during his appearance on BBC Radio 4's Today programme in November 1997.

The allegations are contained in a new book by political writer Andrew Rawnsley of The Observer, extracts of which are published in the Daily Mail.

Mr Ecclestone's gift in 1997, before the May election, proved an embarrassment for the government, which faced allegations that the money had influenced their later decision to seek an exemption for Formula One from a European tobacco advertising ban.

Bernie Ecclestone had his donation returned

The affair became known as the "cash for favours" row.

Labour followed the advice of standards commissioner Lord Neill and returned the money.

But Mr Rawnsley says Mr Blair and Mr Brown were embroiled in two lies over the donation from the multi-millionaire racing chief. The allegations are:

• Mr Brown told BBC Radio 4's Today programme he knew nothing about the donation, but admitted privately afterwards that he had lied, saying: "If this gets out, I'll be destroyed."

• Mr Blair said he had sought advice about the £1m donation from Lord Neill before any journalists had been in touch.

  The book alleges the prime minister contacted Lord Neill only after reporters began to break the scandal. And his letter asked for advice about a second offered donation, not the first.

Shadow chancellor Michael Portillo told the BBC: "The prime minister said that this government would be purer than pure. The prime minister said that any minister who lied would have to go."

Portillo: Resignation demand

"It appears the chancellor of the exchequer has lied on a matter of very important public policy.

"Therefore, the chancellor of the exchequer must resign or the prime minister must sack him."

Conservative leader William Hague challenged Mr Blair to respond to the claims by making a public statement.

"No more serious allegation has been made against a sitting prime minister in modern times," he declared.

Later, Downing Street dismissed Mr Portillo's demand for Mr Brown to resign or be sacked.

In a statement, the Prime Minister's official spokesman said: "There is no question of doing what Mr Portillo was asking for.

"This simply underlines the Conservative Party's pathetic judgement and desire to attach themselves to any passing bandwagon or media frenzy."

This is a second-rate mix of re-heated allegations

Downing Street spokesman

The Liberal Democrat Treasury spokesman, Matthew Taylor, accused the Labour Party as being "as bad as the Tories" on sleaze.

Mr Taylor called for Gordon Brown and Tony Blair to publish all the transcripts and documents surrounding Mr Ecclestone's one million pound donation, but he stopped short of endorsing the Conservatives' call for Mr Brown to resign.

'Unsubstantiated gossip'

Mr Brown's spokesman confirmed that the chancellor did discuss Mr Ecclestone's donation with Mr Blair the week before his appearance on the Today programme.

At the time Mr Ecclestone's donation was not public knowledge and the spokesman said that Mr Brown had not been aware of the full details.

He said it would have been "completely inappropriate" for him to have discussed it in a media interview.

"The allegations made in Andrew Rawnsley's book are completely untrue and based on unsubstantiated gossip. Mr Brown categorically denies having lied," the spokesman said.

Downing Street dismissed the allegations and ridiculed the Daily Mail report.

"This is a second-rate mix of re-heated allegations that were made at the time plus some colourful quotes that add up to nothing," a spokesman said.