The latest data on party donations has revealed that Labour raised £1.3 million less than the Conservatives in the second quarter of this year.

Electoral Commission returns for the three months to June show that Millbank secured just £591,052. The downturn in reportable donations comes as the party faces a £6 million overdraft.

In the previous quarter, Millbank raised £3,379,641, with nearly £2.5 million coming from individual donors.

For the latest quarter £349,050 comes from private pockets, down but still leaving Labour dependent on individual cash gifts.

The party's latest top donors are theatre impresario Bill Kenwright - who gave £200,000 - and stockbroker Charles Peel, who donated £50,000.

Another significant cash sum, £25,000, comes from advertising boss Sir Frank Lowe, who has invested £2 million in a flagship Brent "privatised" City Academy.

The figures come after a series of "cash for access" rows deeply embarrassed Labour - and diminished the appeal of making donations to the governing party.

Controversy over large individual gifts, which comes amid union moves to slash funding in protest at public sector reform plans, have hit Labour's fundraising effort.

But as Labour experiences a cash shortfall, the Tories appear to be surging ahead.

Despite the party's poll woes, the Conservative coffers were boosted by £1,977,807 over the three month period - more than double Labour's efforts.

Over £1 million of Tory cash came from state-funded sources - such as the system of Short money used to fund opposition parties.

But the Tories still took receipt of some large sums, totalling £568,367, from wealthy individuals.

Dixons boss and Conservative treasurer, Sir Stanley Kalms, gave £160,000, the largest individual donation.

The Liberal Democrats continue to trail both the main parties - bringing in £214,671.

Both the Conservative Party and the far-right British National Party reported returning impermissible donations of £500, said the commission.

Total donations to the 182 registered political parties totalled of £3,111,542 in quarter.