Labour in Sleaze row

12.02.26pm UTC (GMT +0000) Tue 14th Mar 2006

money

Labour in Sleaze row

Labour has admitting they received loans from millionaire supporters who were then recommended for peerages. The controversy arose after it emerged that three businessmen at the centre of a row between Downing Street and the watchdog on Lords appointments had all made loans to the Labour party, reportedly worth more than £3.5m.

Liberal Democrat President Simon Hughes said "It would be a scandal if the Government were found to be awarding places in the legislature on the basis of party donations rather than expertise. Liberal Democrats will be active in their opposition to this apparent practice of nominating people for peerages principally on the basis of big-money donations."

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