Labour presses Tories over loans

David Cameron has not revealed anonymous Tory donors

Saturday, 25, Mar 2006 12:00

Labour has gone on the attack over £18 million in loans given to the Conservative Party before the last election.

The government has come under fire for secret loans given to Labour in the run up to the election and several donors were nominated for peerages in the House of Lords.

Labour has been forced to reveal the names of the 12 donors who loaned the party £14 million pounds to finance the election campaign.

Cabinet minister Margaret Beckett has written to David Cameron to ask for him to make a similar disclosure.

The Tory leader has refused to do so despite Mr Cameron's pledge for more openness in his attacks on the government.

Mr Cameron has promised to reveal all future donors but declares that to do so now would be unfair on the benefactors who helped bankroll the Conservatives under assurances of anonymity.

The Electoral Commission has written to all the political parties asking them to declare all loans which are not made at commercial rates, in the same way that the parties are now required to declare donations.

Mrs Beckett's letter comes as work and pensions secretary John Hutton said: "It is time for David Cameron to match his words on openness with actions to declare all Tory loans."

The constitutional affairs committee has announced an inquiry into party funding and will interview Lord Levy, Labour's biggest fundraiser.

Tony Blair has promised to declare all future loans and also to remove the prime minister from the nomination process for the Lords.