The Labour Party is to receive its first £1 million donation for over a year.

The gift from Lady Hamlyn, widow of publishing tycoon Lord Hamlyn who donated £1 million to the party before the 2001 general election, has been revealed by Lord Levy, Labour's chief fundraiser.

Levy tells the Times today: "There is now an urgent need for funds for the Labour Party. I feel very positive that we can raise some serious money."

The donation will be put towards the party's £5 million mortgage on its new headquarters.