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PM 'vows to change funding rules' PM vows to change funding rules
(about 2 hours later)
Gordon Brown is expected to promise to speed up new rules on party funding. Gordon Brown has pledged 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". Mr Brown emphasised the need for consensus between the main parties on the way ahead.
Speaking on BBC Radio, Liberal Democrat acting leader Vince Cable said the row was stopping the government from governing the country properly. Liberal Democrat acting leader Vince Cable said the donations 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. The prime minister told a meeting of Labour's National Executive Committee that the funding issue needed to be tackled immediately.
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 have stalled because agreement could not be reached between the main parties.
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 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.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."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".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.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 correspondentThe 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.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.""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".But he emphasised that "the key is not how you stop crises from happening, it is how you deal with them".
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.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 the concealed payments were "cock-up, not conspiracy".
"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," he added.
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.