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Brown to answer 'crisis' claims | Brown to answer 'crisis' claims |
(about 1 hour later) | |
The Conservatives have accused the government of being "in crisis" after Labour's general secretary resigned in a new row about party funding. | The Conservatives have accused the government of being "in crisis" after Labour's general secretary resigned in a new row about party funding. |
Peter Watt stood down after it emerged that property developer David Abrahams donated nearly £600,000 to the party, over four years, via three associates. | Peter Watt stood down after it emerged that property developer David Abrahams donated nearly £600,000 to the party, over four years, via three associates. |
Prime Minister Gordon Brown is set to face tough questions over the issue at his monthly press conference later. | Prime Minister Gordon Brown is set to face tough questions over the issue at his monthly press conference later. |
Shadow chancellor George Osborne said Labour is "now officially in crisis". | Shadow chancellor George Osborne said Labour is "now officially in crisis". |
He said: "Everything Gordon Brown promised about his premiership - competence, honesty and change - has been blown away in the last few weeks." | He said: "Everything Gordon Brown promised about his premiership - competence, honesty and change - has been blown away in the last few weeks." |
It is clear that there are many more questions that need to be answered about this whole affair Vince CableActing Lib Dem leader Another crisis for Brown Key figures react | It is clear that there are many more questions that need to be answered about this whole affair Vince CableActing Lib Dem leader Another crisis for Brown Key figures react |
Mr Osborne's comments come amid a torrid week for the prime minister which has seen loss of millions of child benefit records, the ongoing Northern Rock crisis and attacks from former army chiefs. | Mr Osborne's comments come amid a torrid week for the prime minister which has seen loss of millions of child benefit records, the ongoing Northern Rock crisis and attacks from former army chiefs. |
The shadow chancellor also demanded to know whether Mr Brown was aware of the donation, adding that it was "beyond belief" that Mr Watt had not objected to the money. | |
Mr Watt told a meeting of officers of Labour's National Executive Committee he had known about the arrangement. | Mr Watt told a meeting of officers of Labour's National Executive Committee he had known about the arrangement. |
Mr Abrahams has since described Mr Watt's resignation as "sad". | Mr Abrahams has since described Mr Watt's resignation as "sad". |
DONORS Ray Ruddick - £196,850Janet Kidd - £185,000 since 2003John McCarthy - £202,125 since 2004Source: Electoral Commission | DONORS Ray Ruddick - £196,850Janet Kidd - £185,000 since 2003John McCarthy - £202,125 since 2004Source: Electoral Commission |
Under the law, those making donations on behalf of others must give details of who is providing the money. | Under the law, those making donations on behalf of others must give details of who is providing the money. |
Mr Abrahams gave the money through colleagues Janet Kidd and Ray Ruddick, and solicitor John McCarthy. | Mr Abrahams gave the money through colleagues Janet Kidd and Ray Ruddick, and solicitor John McCarthy. |
Labour is investigating the donations and the Electoral Commission has also asked the party to explain. | Labour is investigating the donations and the Electoral Commission has also asked the party to explain. |
BBC political editor Nick Robinson said he had been told there may be a fourth person "used as a cover" to make payments on behalf of Mr Abrahams. | BBC political editor Nick Robinson said he had been told there may be a fourth person "used as a cover" to make payments on behalf of Mr Abrahams. |
In his resignation statement, Mr Watt - who has been Labour general secretary since 2005 - said he had always prided himself on "having complete integrity" but added that, as general secretary, he was legally responsible for the reporting obligations for the party. | In his resignation statement, Mr Watt - who has been Labour general secretary since 2005 - said he had always prided himself on "having complete integrity" but added that, as general secretary, he was legally responsible for the reporting obligations for the party. |
Mr Watt said he had resigned "with great sadness" | Mr Watt said he had resigned "with great sadness" |
According to the Electoral Commission, Mr Ruddick has donated £196,850; Mrs Kidd has donated £185,000 since 2003; and Mr McCarthy £202,125 since 2004. | According to the Electoral Commission, Mr Ruddick has donated £196,850; Mrs Kidd has donated £185,000 since 2003; and Mr McCarthy £202,125 since 2004. |
Acting Liberal Democrat leader Vince Cable said: "It is clear that there are many more questions that need to be answered about this whole affair. | Acting Liberal Democrat leader Vince Cable said: "It is clear that there are many more questions that need to be answered about this whole affair. |
"Gordon Brown promised a new style of politics upon becoming prime minister, but this promise, like so many others, has proven to be false." | "Gordon Brown promised a new style of politics upon becoming prime minister, but this promise, like so many others, has proven to be false." |
A ComRes survey suggests that Labour has suffered a six-point slump to 27% in a month, giving the Tories a large lead despite falling one point themselves to 40%. | A ComRes survey suggests that Labour has suffered a six-point slump to 27% in a month, giving the Tories a large lead despite falling one point themselves to 40%. |
It surveyed 1,002 adults by telephone on 23 to 25 November and the results were weighted. | It surveyed 1,002 adults by telephone on 23 to 25 November and the results were weighted. |