Sainsbury: £8m to Labour

A fresh funding row has broken out after it emerged that Lord Sainsbury has donated a further £2.5 million to the Labour Party.

The donation takes the total amount given by the billionaire Labour peer and DTI minister to £8 million.

The biggest single donation in the party's history will help service a £6 million overdraft and a £4.5 million mortgage.

In a statement, Lord Sainsbury said: "In our democracy political parties have to raise funds to campaign and put their policies to the electorate, and as a proud supporter of the Labour Party I am happy to be in a position where I can make a contribution to its ongoing work."

David Triesman, Labour's general secretary, welcomed the controversial donation.

"We are grateful to everyone who contributes whatever they can to the Labour Party. This very generous donation from Lord Sainsbury is fantastic news for our party," he said.

"We remain hugely grateful to him for his continued steadfast support."

Labour left-wingers united with the Conservatives to condemn the move.

They say it sends out the wrong message and warn that the practice of ministerial donations is wrong in principle.

"In any other country I think a government minister donating such vast amounts of money and effectively buying a political party would be seen for what it is, a form of corruption of the political process," NEC member Mark Seddon told BBC Radio.

And Conservative chairman Theresa May said there were "real questions" over the donation.

"The fact that Lord Sainsbury is a government minister, he was appointed by the prime minister and, indeed, he is in a ministerial position where he is making decisions which could have commercial consequences, I think raises real questions," she said.