Galen Weston, the Canadian billionaire who recently bought Selfridges, has been appointed to a six-strong Conservative Party Foundation which will seek to put the Tories' finances on a sound footing.

Michael Howard announced the move along with plans to invest the cash generated through the sale of the party's Smith Square lease in a new endowment fund.

It is hoped that the new foundation, which will take overall control of Tory finances, will end years of controversy about the party's funding arrangements.