Labour is close to securing a new £1 million donation from a private individual, according to reports.

The party, currently grappling with a multi-million pound overdraft, has refused to comment and officials say any gift will be reported to the Electoral Commission.

The Guardian reports that the donor is not a controversial figure.

The IPPR will tomorrow publish a report calling for an increase in state funding of political parties and a £5000 limit on donations from individuals, businesses and unions.