Bill Morris, the general secretary of the TGWU, has called on prime minister Tony Blair to "get a grip" on sleaze allegations concerning Labour donors.

Downing Street yesterday confirmed that Blair had met with the Czech government over an arms deal by a consortium including a party donor, while questions also continued over the business interests of Lord Levy.

Morris told GMTV: "I think the prime minister has got to get a grip of this because incrementally it can be extremely damaging for the government."

Labour has also been hit by claims concerning an increase in grants to a laboratory linked to science minister, Lord Sainsbury, and the awarding of a £32 million contract for the smallpox vaccine to Powderject, whose chief executive is another Labour donor.

Labour insiders last night predicted that Levy, unofficial envoy to the Middle East, could soon resign, reports the Guardian.

The Times today reports that Downing Street chief of staff, Jonathan Powell, made the approach to Formula One chief Bernie Ecclestone that resulted in a £1 million donation to the Labour Party.