Call for new controls on peerages

Mr MacNeill has expressed disquiet at the system of creating peers

A MP wants to regulate how honours are awarded to people who donate money to political parties in the wake of the "cash for peerages" row.

Angus MacNeil is publishing a draft Bill in the Commons.

The SNP MP for the Western Isles said it would also control honours to people who received government contracts or sponsored state programmes.

Police are investigating claims that wealthy businessmen received peerages in return for loans or donations.

The allegations have been denied by all concerned.

The cash-for-honours inquiry was originally launched in response to a complaint by Scottish and Welsh nationalist MPs. Mr MacNeil said he had alerted Scotland Yard to the allegations.

He said his Honours (Prevention of Corruption) Bill was designed to fill the gaps in the government's own proposals in the Electoral Administration Bill, which are to be debated in the Commons on Tuesday.

The cash for peerages scandal has cast a big shadow over our democracy Angus MacNeil

His Bill would create limits on donations where an honour has been awarded and a two-year quarantine period between the award of an honour and donations to political parties.

It would also lead to the setting up of an Honours and Appointments Commission with the power to veto nominations for honours.

Mr MacNeil said: "There is a real sense across the country that having a financial relationship with a political party, or financially supporting government programmes, eases the path to certain honours.

"The cash for peerages scandal has cast a big shadow over our democracy.

"It is my view that the people who are embroiled in that scandal shouldn't be the ones deciding the new rules."