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Labour not tainted, says Purnell Labour not tainted, says Purnell
(about 1 hour later)
Labour's reputation has not been tainted by a string of fund-raising scandals, new Work and Pensions Secretary James Purnell has said.Labour's reputation has not been tainted by a string of fund-raising scandals, new Work and Pensions Secretary James Purnell has said.
Mr Purnell was given the job after Peter Hain quit over a police probe into gifts to his Labour deputy leadership bid.Mr Purnell was given the job after Peter Hain quit over a police probe into gifts to his Labour deputy leadership bid.
It is one of several inquiries into the finances of senior Labour figures.It is one of several inquiries into the finances of senior Labour figures.
But Mr Purnell said the party was doing "what is right" in order to reform its funding arrangements.But Mr Purnell said the party was doing "what is right" in order to reform its funding arrangements.
Asked in an interview with BBC Radio 4's Today programme, if the controversies had left a "bit of a taint around the question of Labour's relationship with money", Mr Purnell said: "No. I don't think so."Asked in an interview with BBC Radio 4's Today programme, if the controversies had left a "bit of a taint around the question of Labour's relationship with money", Mr Purnell said: "No. I don't think so."
Mr Purnell, who at 37 is the youngest of a group of minister promoted to the cabinet by Gordon Brown, called for progress on party funding reforms.Mr Purnell, who at 37 is the youngest of a group of minister promoted to the cabinet by Gordon Brown, called for progress on party funding reforms.
Police probesPolice probes
He said: "I do think what is right to do is to move forward on Sir Hayden Phillips' recommendations and that's what we are committed to doing... David Cameron should do the same thing."He said: "I do think what is right to do is to move forward on Sir Hayden Phillips' recommendations and that's what we are committed to doing... David Cameron should do the same thing."
The Conservatives have also said they want to reform party funding - and have called for a cap on donations.The Conservatives have also said they want to reform party funding - and have called for a cap on donations.
CABINET RESHUFFLE Work and Pensions Secretary: James PurnellCulture Secretary: Andy BurnhamChief Secretary to the Treasury: Yvette CooperHousing Minister: Caroline FlintSecretary of State for Wales: Paul Murphy Profile: James PurnellProfile: Andy BurnhamCABINET RESHUFFLE Work and Pensions Secretary: James PurnellCulture Secretary: Andy BurnhamChief Secretary to the Treasury: Yvette CooperHousing Minister: Caroline FlintSecretary of State for Wales: Paul Murphy Profile: James PurnellProfile: Andy Burnham
But they have said the funding scandals to have hit Labour have been caused by ministers failing to follow the existing rules, which were brought in by Labour.But they have said the funding scandals to have hit Labour have been caused by ministers failing to follow the existing rules, which were brought in by Labour.
Shadow Cabinet Office minister Francis Maude said: "We have always said we will restart talks as soon as Gordon Brown accepts the need for an across-the-board cap on donations.
"The talks broke down last October because Labour were unwilling to consider any meaningful reform of the trade unions' control of Labour's finances."
Harriet Harman, who beat Mr Hain to the deputy leadership, is being investigated by the Electoral Commission over a £5,000 donation to her campaign from businessman David Abrahams, which was given via a proxy.Harriet Harman, who beat Mr Hain to the deputy leadership, is being investigated by the Electoral Commission over a £5,000 donation to her campaign from businessman David Abrahams, which was given via a proxy.
The police are also probing more than £600,000 in donations given by Mr Abrahams to Labour through third parties.The police are also probing more than £600,000 in donations given by Mr Abrahams to Labour through third parties.
And the Electoral Commission is looking into £950 to Scottish Labour leader Wendy Alexander's campaign fund from a Jersey-based businessman.And the Electoral Commission is looking into £950 to Scottish Labour leader Wendy Alexander's campaign fund from a Jersey-based businessman.
'Proper' funding'Proper' funding
Mr Hain has returned to his constituency and faces a police inquiry into donations totalling £103,000 which he failed to declare to officials in time.Mr Hain has returned to his constituency and faces a police inquiry into donations totalling £103,000 which he failed to declare to officials in time.
The MP for Neath, who is the first cabinet member to quit under Gordon Brown's premiership, has promised to clear his name. His other post - Welsh secretary - goes to Paul Murphy.The MP for Neath, who is the first cabinet member to quit under Gordon Brown's premiership, has promised to clear his name. His other post - Welsh secretary - goes to Paul Murphy.
Commenting on Mr Hain's resignation, Mr Purnell said: "I do feel sorry for Peter and Peter's clearly said that he intends to clear his name.Commenting on Mr Hain's resignation, Mr Purnell said: "I do feel sorry for Peter and Peter's clearly said that he intends to clear his name.
"He believed that he didn't have time to do both that and continue with his ministerial position and I think he's taken the right decision in that respect.""He believed that he didn't have time to do both that and continue with his ministerial position and I think he's taken the right decision in that respect."
Mr Purnell said it was important now to put the funding of political parties on a "proper basis", but claimed the Tories were blocking a cross-party deal.Mr Purnell said it was important now to put the funding of political parties on a "proper basis", but claimed the Tories were blocking a cross-party deal.
In the reshuffle, Mr Purnell is replaced as culture secretary by Andy Burnham. Yvette Cooper replaces Mr Burnham as chief secretary to the treasury, and Caroline Flint becomes housing minister.In the reshuffle, Mr Purnell is replaced as culture secretary by Andy Burnham. Yvette Cooper replaces Mr Burnham as chief secretary to the treasury, and Caroline Flint becomes housing minister.
The prime minister said Mr Hain's resignation was the "right and honourable thing to do", while Conservative leader David Cameron said it was the "right decision".The prime minister said Mr Hain's resignation was the "right and honourable thing to do", while Conservative leader David Cameron said it was the "right decision".