Commons to debate dodgy donations

David Cameron has switched the subject for the "Opposition Day" debate in the Commons to political fundraising.

The change in topic is a move to stoke up pressure on Labour over donations, and follows Peter Hain's admission of irregularities.

The Work and Pensions Secretary apologised after revealing gifts to his unsuccessful campaign for Labour's deputy leadership earlier this year were not properly registered.

Mr Hain - who had already admitted failing to register a £5,000 donation from Labour's chief fundraiser Jon Mendelsohn - said he had informed the Electoral Commission and was reviewing all donations to his campaign.

His surprise admission came as Prime Minister Gordon Brown tried to regain control of the issue by pressing forward with reforms to the system for financing political parties.

Addressing MPs and peers at a meeting of the Parliamentary Labour Party in Westminster on Monday night, Mr Brown said he was as angry as any of them about the row over donations sparked by last week's revelation that property developer David Abrahams had given more than £650,000 to Labour through middlemen.

It is understood that Mr Brown is now ready to accept that unions should be covered by a proposed £50,000 cap on donations from individuals and organisations.

The Prime Minister said new laws would be produced "quickly" and called for all-party support.

Mr Cameron, who last month pulled the Tories out of cross-party talks on funding, on Monday indicated he would back fresh moves to secure agreement on the issue provided Labour did not "bury its head in the sand" and seek to exclude trades unions from any cap on single donations.

The row over Mr Abrahams' donations intensified over the weekend when the businessman claimed as many as ten senior Labour officials were aware of his funding arrangements.

Three separate police forces are now probing allegations surrounding Labour funding, including Scotland Yard.

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