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PM 'vows to change funding rules' | PM 'vows to change funding rules' |
(about 1 hour 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, Mr Abrahams has told the Guardian that the concealed payments were "cock-up, not conspiracy". | |
Speaking on BBC Radio, Liberal Democrat acting leader Vince Cable said the row was stopping the government from governing the country properly. | |
The prime minister is expected 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 will be produced soon. | Cross-party talks on funding chaired by Sir Hayden Phillips had stalled, but it is thought that a White Paper will be produced soon. |
Contradictory claims | Contradictory 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 graphics | See 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 was denied by Mr Mendelsohn who said Mr Abrahams' claims were completely untrue. | But 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. |
Speaking on BBC Radio 4's Today Programme, Vince Cable, acting leader of the Liberal Democrats, said the row was now preventing the Government from properly focusing on running the country. | |
He said: "One of the big culture questions is that the Government is in paralysis. We've got ministers briefing against each other...it's a very challenging time." | |
But he acknowledged that Gordon Brown had "been unlucky inheriting a system from his predecessor. Tony Blair skated around thin ice...this prime minister is falling through it". | |
Also speaking on the programme, James Parnell, secretary of state for culture, media and sport, conceded there was a problem that had to be dealt with. | |
The idea there was only one or two people in the party who knew about it simply does not add up Ben Wright, BBC political correspondent | |
He said: "I do think we need to look at the issue of party funding and this has been a depressing week for the Labour party. | |
"People of course are infuriated by it, the public are infuriated by it and so are we." | |
But he emphasised that "the key is not how you stop crises from happening, it is how you deal with them". | |
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. | 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. | "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." | "So the idea there was only one or two people in the party who knew about it simply does not add up." |
Lottery winners | Lottery 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. | 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. |