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PM 'vow to change funding rules' PM 'vow to change funding rules'
(30 minutes later)
Gordon Brown is expected to promise to speed up new rules on party funding.Gordon Brown is expected to promise to speed up new rules on party funding.
His vow follows revelations that gifts of more than £650,000 were given to Labour by businessman David Abrahams using proxy donors.His vow follows revelations that gifts of more than £650,000 were given to Labour by businessman David Abrahams using proxy donors.
Meanwhile, in an interview with the Guardian newspaper, Mr Abrahams said the concealed payments were "cock-up not conspiracy".Meanwhile, in an interview with the Guardian newspaper, Mr Abrahams said the concealed payments were "cock-up not conspiracy".
The prime minister is likely to tell the Labour Party's National Executive Committee that funding needs tackling.The prime minister is likely to tell the Labour Party's National Executive Committee that funding needs tackling.
Cross-party talks on funding chaired by Sir Hayden Phillips had stalled, but it is thought that a White Paper be produced soon.Cross-party talks on funding chaired by Sir Hayden Phillips had stalled, but it is thought that a White Paper be produced soon.
Contradictory claimsContradictory claims
On Friday, there were contradictory claims about what was known and when by two key figures in the affair.On Friday, there were contradictory claims about what was known and when by two key figures in the affair.
Mr Abrahams said he discussed his donation arrangement with Jon Mendelsohn, now the party's chief fundraiser, in April.Mr Abrahams said he discussed his donation arrangement with Jon Mendelsohn, now the party's chief fundraiser, in April.
See how David Abrahams made donations to the Labour PartyIn graphicsSee how David Abrahams made donations to the Labour PartyIn graphics
He also said that he received thank you letters from the Labour party following his donations.He also said that he received thank you letters from the Labour party following his donations.
But that that was denied by Mr Mendelsohn who said Mr Abrahams' claims were completely untrue.But that that was denied by Mr Mendelsohn who said Mr Abrahams' claims were completely untrue.
Mr Mendelsohn said earlier in the week that he only found out about the arrangement in September.Mr Mendelsohn said earlier in the week that he only found out about the arrangement in September.
Mr Abrahams has said he did not know he was breaking any rules when he made the donations by proxy, claiming that he kept them secret to avoid publicity. BBC political correspondent Ben Wright said: "It is a remarkable spat really, particularly on a day when the police said they are going to get stuck into this.
"This was Mr Abrahams publicly making his position very clear. The implication, he is saying, is the Labour Party knew all about this, me and my arrangements.
"So the idea there was only one or two people in the party who knew about it simply does not add up."
Lottery winnersLottery winners
Mr Abrahams has said he did not know he was breaking any rules when he made the donations by proxy, claiming that he kept them secret to avoid publicity.
In an interview with the Guardian he said: "Like sensible Lottery winners, I do not want my wealth to change the way I, as a working class boy, lead my life, or get in the way of my many friendships with people with a similar background to myself."In an interview with the Guardian he said: "Like sensible Lottery winners, I do not want my wealth to change the way I, as a working class boy, lead my life, or get in the way of my many friendships with people with a similar background to myself."
On Friday the prime minister vowed to give his backing to the "fullest possible investigation" into Labour funding.On Friday the prime minister vowed to give his backing to the "fullest possible investigation" into Labour funding.
In a letter to the Met Police, Gordon Brown said he was "ready to assist" the police probe and had asked Labour MPs, staff and peers to "co-operate fully".In a letter to the Met Police, Gordon Brown said he was "ready to assist" the police probe and had asked Labour MPs, staff and peers to "co-operate fully".
Number 10 has played down reports of a rift between the PM and Labour's deputy leader Harriet Harman over the affair.Number 10 has played down reports of a rift between the PM and Labour's deputy leader Harriet Harman over the affair.
Mr Brown has insisted that he knew nothing about the funding arrangement with Mr Abrahams.Mr Brown has insisted that he knew nothing about the funding arrangement with Mr Abrahams.
The prime minister has said all the money paid out by Mr Abrahams will be returned.The prime minister has said all the money paid out by Mr Abrahams will be returned.