Lib Dems 'could survive' returning £2.4m

The Liberal Democrat leader has insisted his party "will survive" if it had to pay back a £2.4 million donation made before the last general election.

Menzies Campbell said giving up the money would cost each party member about £33 but he insisted: "If this comes up we'll deal with it."

The Electoral Commission said on Friday that new evidence may make the £2.4 million donation from 5th Avenue Partners Ltd "impermissible".

There was a suggestion the firm had not been operating in the UK when it made the contribution in a series of separate donations ahead of last year's election.

Under electoral law, only firms or individuals based in the UK can donate to political parties. 5th Avenue's owner, Michael Brown, was living in Spain at the time and so was barred from giving money himself.

The commission is due to take a decision on the donation in the next few weeks, but speaking on BBC One's Sunday AM yesterday, Sir Menzies stressed that having to hand the money back would not cripple the Lib Dems.

The donation made up half the Lib Dems' campaign expenditure last year and was one of the largest ever received by the party.

"We will survive," Sir Menzies said, adding: "Our party has been in existence for, what, the best part of 150 years. We'd go on being in existence."

Mr Brown has since been jailed for perjury but there is no suggestion his case has anything to do with the Lib Dems. The Electoral Commission said on Friday it still believed the party had acted in good faith in accepting the donation.

If the donation is ruled impermissible, the commission has the power to apply for a court order to demand the Lib Dems pay back the money. It would be not be returned to Mr Brown, but put into a special government fund.