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Tory Peter Cruddas quits after donor access claims Tory Peter Cruddas quits after donor access claims
(40 minutes later)
Conservative Party co-treasurer Peter Cruddas has resigned after secretly filmed footage showed him apparently offering access to the prime minister for a donation of £250,000 a year.Conservative Party co-treasurer Peter Cruddas has resigned after secretly filmed footage showed him apparently offering access to the prime minister for a donation of £250,000 a year.
He made the claim to Sunday Times reporters posing as potential donors.He made the claim to Sunday Times reporters posing as potential donors.
He said £250,000 gave "premier league" access, including dinner with David Cameron and possibly the chance to influence government policy.He said £250,000 gave "premier league" access, including dinner with David Cameron and possibly the chance to influence government policy.
Party officials said no donation had actually been accepted.Party officials said no donation had actually been accepted.
No matter how you look at it, it looks bad. The Conservatives' premier fundraiser dangling the opportunity to dine with the Camerons above 10 Downing Street and, more significantly, influence policy meetings at the heart of the coalition government. All in exchange for a "premier league" six-figure donation.No matter how you look at it, it looks bad. The Conservatives' premier fundraiser dangling the opportunity to dine with the Camerons above 10 Downing Street and, more significantly, influence policy meetings at the heart of the coalition government. All in exchange for a "premier league" six-figure donation.
Peter Cruddas may have been trying to tempt potential donors with special treatment, or he may have been making it clear that big money buys access and with it some influence.Peter Cruddas may have been trying to tempt potential donors with special treatment, or he may have been making it clear that big money buys access and with it some influence.
It will lead to fresh calls for the reform of party funding. Both Labour and the Liberal Democrats are dogged by criticism over big donors - the trade unions in Ed Miliband's case, convicted conman Michael Brown in Nick Clegg's case.It will lead to fresh calls for the reform of party funding. Both Labour and the Liberal Democrats are dogged by criticism over big donors - the trade unions in Ed Miliband's case, convicted conman Michael Brown in Nick Clegg's case.
The most damaging consequence of this could be for David Cameron. People who already have a very jaundiced view of politicians may believe this confirms what they already thought.The most damaging consequence of this could be for David Cameron. People who already have a very jaundiced view of politicians may believe this confirms what they already thought.
Labour wants full details of donor access to be published.Labour wants full details of donor access to be published.
In the footage, Mr Cruddas, who is also founder of online trading company Currency Management Consultants Ltd, is heard initially saying that it was not possible to buy access to the prime minister. The Sunday Times said the fake company was a wealth fund based in Liechtenstein.
Donations from it would have been ineligible under electoral law, but not from British company directors who were registered on the UK electoral roll, the reporters were told by a lobbyist they hired, Sarah Southern.
'Premier league'
In the footage, Mr Cruddas is heard initially saying that it was not possible to buy access to the prime minister.
But he then goes on to discuss what access different size donations would get.But he then goes on to discuss what access different size donations would get.
He spoke about the Leader's Group, a club where for an annual donation of £50,000 donors are invited to join Mr Cameron and other senior figures from the Conservative Party at dinners, post-Prime Minister Questions lunches, drinks receptions, election result events and important campaign launches.He spoke about the Leader's Group, a club where for an annual donation of £50,000 donors are invited to join Mr Cameron and other senior figures from the Conservative Party at dinners, post-Prime Minister Questions lunches, drinks receptions, election result events and important campaign launches.
However, he said more money would allow more access, including to Chancellor George Osborne.However, he said more money would allow more access, including to Chancellor George Osborne.
"Two hundred grand to 250 is premier league… what you would get is, when we talk about your donations the first thing we want to do is get you at the Cameron/Osborne dinners," he says."Two hundred grand to 250 is premier league… what you would get is, when we talk about your donations the first thing we want to do is get you at the Cameron/Osborne dinners," he says.
He said the meetings were good for picking up "a lot of information", and that he would ensure suggestions were fed into the No 10 policy unit.He said the meetings were good for picking up "a lot of information", and that he would ensure suggestions were fed into the No 10 policy unit.
"You will be able to ask him [Mr Cameron] practically any question you want."You will be able to ask him [Mr Cameron] practically any question you want.
"If you're unhappy about something, we will listen to you and put it into the policy committee at number 10 - we feed all feedback to the policy committee.""If you're unhappy about something, we will listen to you and put it into the policy committee at number 10 - we feed all feedback to the policy committee."
He also told the reporters: "It'll be awesome for your business. You'll be... well pleased. Because your guests will be photographed with David Cameron. We do that, you know."He also told the reporters: "It'll be awesome for your business. You'll be... well pleased. Because your guests will be photographed with David Cameron. We do that, you know."
Mr Cruddas was appointed Tory co-treasurer in June 2011.Mr Cruddas was appointed Tory co-treasurer in June 2011.
Resigning, he said: "I deeply regret any impression of impropriety arising from my bluster in that conversation."Resigning, he said: "I deeply regret any impression of impropriety arising from my bluster in that conversation."
A statement from the Tories said: "No donation was ever accepted or even formally considered by the Conservative Party. He said he had had an "initial conversation" with the reporters and no further action was taken by the party.
"All donations to the Conservative Party have to comply with requirements of electoral law, and these are strictly enforced by our compliance department." "Clearly there is no question of donors being able to influence policy or gain undue access to politicians," he said.
A Conservative Party spokesman said the undercover reporters pretended to be from a company called Zenith.
The Sunday Times said the fake company was a wealth fund based in Liechtenstein - and therefore donations from it would have been ineligible under electoral law.
However, donations channelled through British company directors who were registered on the UK electoral roll could be considered, the reporters were told.
The reporters had hired lobbyist Sarah Southern, a former Cameron aide.
'No policy discussion'
Following his resignation in the early hours of Sunday morning, Mr Cruddas released a statement saying: "I only took up the post of principal treasurer of the party at the beginning of the month and was keen to meet anyone potentially interested in donating.
"As a result, and without consulting any politicians or senior officials in the party, I had an initial conversation with Zenith. No further action was taken by the party.
"Clearly there is no question of donors being able to influence policy or gain undue access to politicians.
"Specifically, it was categorically not the case that I could offer, or that David Cameron would consider, any access as a result of a donation. Similarly, I have never knowingly even met anyone from the Number 10 policy unit.""Specifically, it was categorically not the case that I could offer, or that David Cameron would consider, any access as a result of a donation. Similarly, I have never knowingly even met anyone from the Number 10 policy unit."
He went on to say that in order to make this position "clear beyond doubt" he had decided to resign.He went on to say that in order to make this position "clear beyond doubt" he had decided to resign.
A statement from the Tories said: "No donation was ever accepted or even formally considered by the Conservative Party.
"All donations to the Conservative Party have to comply with requirements of electoral law, and these are strictly enforced by our compliance department."
Labour demandsLabour demands
Labour wants the names of Tory donors who have visited government property - including Downing Street and Chequers - to be published, as well as the names of donors who have made submissions to the Downing Street policy unit.Labour wants the names of Tory donors who have visited government property - including Downing Street and Chequers - to be published, as well as the names of donors who have made submissions to the Downing Street policy unit.
Labour Party deputy chairman Tom Watson said: "Though Mr Cruddas has resigned, it's David Cameron that hosts the dinner parties, and people would expect him to explain how - when people have given a quarter of a million pounds - how those dinner parties are held, what is discussed and what policies went into the machinery of Downing Street." Labour deputy chairman Tom Watson said: "Though Mr Cruddas has resigned, it's David Cameron that hosts the dinner parties, and people would expect him to explain how - when people have given a quarter of a million pounds - how those dinner parties are held, what is discussed and what policies went into the machinery of Downing Street."
Labour ex-ministers were also once accused of offering access to leaders, but Mr Watson said: "I'm not saying that everyone is blameless in this. We do need reform of political funding."Labour ex-ministers were also once accused of offering access to leaders, but Mr Watson said: "I'm not saying that everyone is blameless in this. We do need reform of political funding."
He said a register of lobbyists "was overdue" and more transparency was needed.He said a register of lobbyists "was overdue" and more transparency was needed.
'Absolutely inevitable'
Last year, after an inquiry into public funding of political parties, the Committee for Standards in Public Life said political parties should get an extra £23m of taxpayers' money to reduce reliance on "big money" donations.Last year, after an inquiry into public funding of political parties, the Committee for Standards in Public Life said political parties should get an extra £23m of taxpayers' money to reduce reliance on "big money" donations.
It also recommended a £10,000 annual cap on individual donations from 2015.It also recommended a £10,000 annual cap on individual donations from 2015.
At present there are no limits on donations, but the name of anyone who gives more than £7,500 to a party is made public.At present there are no limits on donations, but the name of anyone who gives more than £7,500 to a party is made public.
Committee chairman Sir Christopher Kelly said on Sunday that such funding stories were "absolutely inevitable".
"This sort of thing will happen as long as the parties depend on wealthy individuals for their existence," he told the BBC.
He said he had recommended that "the only way to remove the suspicion surrounding very large donations would be to ban very large donations".
"That requires all the parties to address something very hard. For the Conservatives it means giving up their advantage of having more wealthy supporters. For Labour, the relationship with the trade unions," he said.
What is your reaction to the resignation of Peter Cruddas and the claims made by the Sunday Times? You can send us your views using the form below.What is your reaction to the resignation of Peter Cruddas and the claims made by the Sunday Times? You can send us your views using the form below.