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Brown admits donations 'unlawful' Brown admits donations 'unlawful'
(9 minutes later)
Gordon Brown has said donations to the Labour Party by a property developer through middlemen were "completely unacceptable" and would be repaid.Gordon Brown has said donations to the Labour Party by a property developer through middlemen were "completely unacceptable" and would be repaid.
The prime minister told reporters he had had "no knowledge" of £600,000 of donations from David Abrahams and said they could "not be justified".The prime minister told reporters he had had "no knowledge" of £600,000 of donations from David Abrahams and said they could "not be justified".
"The money was not lawfully declared so it will be returned," he said."The money was not lawfully declared so it will be returned," he said.
Harriet Harman has also pledged to return £5,000 she received "in good faith" for her deputy leadership bid.Harriet Harman has also pledged to return £5,000 she received "in good faith" for her deputy leadership bid.
Labour's general secretary Peter Watt resigned on Monday after it emerged that Mr Abrahams donated the money to the party over four years, under three associates' names.Labour's general secretary Peter Watt resigned on Monday after it emerged that Mr Abrahams donated the money to the party over four years, under three associates' names.
Advice on safeguardsAdvice on safeguards
It has emerged that a fourth donor was also used. Janet Dunn, the wife of one of Mr Abrahams' employees, donated £25,000 to the Labour Party in January 2003.It has emerged that a fourth donor was also used. Janet Dunn, the wife of one of Mr Abrahams' employees, donated £25,000 to the Labour Party in January 2003.
At his monthly press briefing Mr Brown said it appeared to have been a practice which had been going on "for some years" - but he was first told about it on Saturday evening.At his monthly press briefing Mr Brown said it appeared to have been a practice which had been going on "for some years" - but he was first told about it on Saturday evening.
Once the facts were established, Mr Watt's resignation was "a necessary first step" but the party would also return the money.Once the facts were established, Mr Watt's resignation was "a necessary first step" but the party would also return the money.
DONORS Ray Ruddick - £196,850Janet Kidd - £185,000 since 2003John McCarthy - £202,125 since 2004Source: Electoral Commission href="http://newsforums.bbc.co.uk/nol/thread.jspa?forumID=3864&edition=1">Your reaction to donor row class="" href="/1/hi/uk_politics/7114926.stm">Analysis: Fighting fires DONORS Ray Ruddick - £196,850Janet Kidd - £185,000 since 2003John McCarthy - £202,125 since 2004Source: Electoral Commission Analysis: Fighting fires class="" href="/1/hi/uk_politics/7115626.stm">Q&A: Donations row
Mr Brown said he had appointed the retired judge Lord McCluskey and the former Bishop of Oxford, Lord Harries, to advise on the changes that needed to be made in relation to donations.Mr Brown said he had appointed the retired judge Lord McCluskey and the former Bishop of Oxford, Lord Harries, to advise on the changes that needed to be made in relation to donations.
Meanwhile Labour veteran Lord Whitty will draw up a report on what had happened.Meanwhile Labour veteran Lord Whitty will draw up a report on what had happened.
Mr Brown said a donation from Janet Kidd had been offered to his own leadership campaign, but had been rejected as only donations from people known to the campaign had been accepted.Mr Brown said a donation from Janet Kidd had been offered to his own leadership campaign, but had been rejected as only donations from people known to the campaign had been accepted.
'Mistakes made''Mistakes made'
Asked if he knew Mr Abrahams Mr Brown said: "I am sure I may have met him but I have no recollection of any conversations about any of these issues.Asked if he knew Mr Abrahams Mr Brown said: "I am sure I may have met him but I have no recollection of any conversations about any of these issues.
"I had no knowledge until Saturday night, either of the donations or of the practice which had grown up where they were improperly declared to the Electoral Commission. No knowledge at all.""I had no knowledge until Saturday night, either of the donations or of the practice which had grown up where they were improperly declared to the Electoral Commission. No knowledge at all."
There is a time in the life of every government when it slips over from complacency into arrogance, and from arrogance into even indifference for the law David CameronConservative leader Key figures reactThere is a time in the life of every government when it slips over from complacency into arrogance, and from arrogance into even indifference for the law David CameronConservative leader Key figures react
He said mistakes had been made and changes were needed to ensure Labour imposed "the highest standards in future".He said mistakes had been made and changes were needed to ensure Labour imposed "the highest standards in future".
The Electoral Commission is investigating whether the donations breached the Political Parties and Referendums Act 2000 and has confirmed it has been "in touch" with the Crown Prosecution Service.The Electoral Commission is investigating whether the donations breached the Political Parties and Referendums Act 2000 and has confirmed it has been "in touch" with the Crown Prosecution Service.
'Who gets money?''Who gets money?'
Under the law, those making donations on behalf of others must give details of who is providing the money.Under the law, those making donations on behalf of others must give details of who is providing the money.
Mr Abrahams donated the money through colleagues Janet Kidd and Ray Ruddick, and solicitor John McCarthy.Mr Abrahams donated the money through colleagues Janet Kidd and Ray Ruddick, and solicitor John McCarthy.
UKIP leader Nigel Farage, who is still embroiled in a row with the Electoral Commission over forfeiting "impermissible donations" from a man who was not on the electoral roll, asked who the money would be paid back to.UKIP leader Nigel Farage, who is still embroiled in a row with the Electoral Commission over forfeiting "impermissible donations" from a man who was not on the electoral roll, asked who the money would be paid back to.
It's a whole sleazy area; it needs cleaning up because of lack of public confidence Vince CableLib Dem acting leader Profile: Peter Watt Profile: David AbrahamsIt's a whole sleazy area; it needs cleaning up because of lack of public confidence Vince CableLib Dem acting leader Profile: Peter Watt Profile: David Abrahams
He said: "Surely the money cannot be returned to Mr Abrahams because he is not the donor of record. Does that mean it all goes back to the jobbing builder, the secretary and the solicitor?"He said: "Surely the money cannot be returned to Mr Abrahams because he is not the donor of record. Does that mean it all goes back to the jobbing builder, the secretary and the solicitor?"
Mr Watt resigned on Monday after telling Labour's National Executive Committee he knew about the arrangement, but had believed he had complied with reporting obligations.Mr Watt resigned on Monday after telling Labour's National Executive Committee he knew about the arrangement, but had believed he had complied with reporting obligations.
The Tories say this explanation "defies credibility". Conservative leader David Cameron accused the government of demonstrating "an indifference for the law" over issues like the donations and lost data discs.The Tories say this explanation "defies credibility". Conservative leader David Cameron accused the government of demonstrating "an indifference for the law" over issues like the donations and lost data discs.
Deputy campaignDeputy campaign
He told business leaders at the CBI conference: "They say you've got to have this bit of security, that bit of compliance, and whether it's their own government departments or their own party machines, they simply don't obey the law.He told business leaders at the CBI conference: "They say you've got to have this bit of security, that bit of compliance, and whether it's their own government departments or their own party machines, they simply don't obey the law.
"There is a time in the life of every government when it slips over from complacency into arrogance, and from arrogance into even indifference for the law. I say we've reached that point and it is time for real change in our country.""There is a time in the life of every government when it slips over from complacency into arrogance, and from arrogance into even indifference for the law. I say we've reached that point and it is time for real change in our country."
Mr Watt said he had resigned "with great sadness"Mr Watt said he had resigned "with great sadness"
Money was also offered to Hilary Benn and Harriet Harman's deputy leadership campaigns, in Janet Kidd's name.Money was also offered to Hilary Benn and Harriet Harman's deputy leadership campaigns, in Janet Kidd's name.
Ms Harman accepted it but Mr Benn's team turned it down because he was told it was on behalf of Mr Abrahams. He later accepted it when it was donated in Mr Abrahams' name.Ms Harman accepted it but Mr Benn's team turned it down because he was told it was on behalf of Mr Abrahams. He later accepted it when it was donated in Mr Abrahams' name.
Ms Harman said she had no reason to think the money came from Mr Abrahams and she had accepted Mrs Kidd as a "pre-existing Labour donor".Ms Harman said she had no reason to think the money came from Mr Abrahams and she had accepted Mrs Kidd as a "pre-existing Labour donor".
Mr Brown was repeatedly asked whether he had faith in Ms Harman - he referred to her statement that she had taken the money in good faith and gave her his support.Mr Brown was repeatedly asked whether he had faith in Ms Harman - he referred to her statement that she had taken the money in good faith and gave her his support.
'Can of worms''Can of worms'
According to the Electoral Commission, Mr Ruddick has donated £196,850; Mrs Kidd has donated £185,000 since 2003; and Mr McCarthy £202,125 since 2004.According to the Electoral Commission, Mr Ruddick has donated £196,850; Mrs Kidd has donated £185,000 since 2003; and Mr McCarthy £202,125 since 2004.
Mrs Dunn made the earliest known donation, £25,000 in January 2003.Mrs Dunn made the earliest known donation, £25,000 in January 2003.
Whatever the final calculations, the facts are simply gob-smacking BBC political editor Nick Robinson Read Nick's thoughts in full Whatever the final calculations, the facts are simply gob-smacking BBC political editor Nick Robinson Read Nick's thoughts in full
Newspapers report that Mr Ruddick and Mrs Kidd are listed as directors of a property company, Durham Green Developments, which won planning permission for a multi-million pound business park - and Durham City Council had confirmed Mr Abrahams was involved in negotiations.Newspapers report that Mr Ruddick and Mrs Kidd are listed as directors of a property company, Durham Green Developments, which won planning permission for a multi-million pound business park - and Durham City Council had confirmed Mr Abrahams was involved in negotiations.
Acting Liberal Democrat leader Vince Cable said that "an enormous can of worms had been opened up" and the government should have brought in new party funding regulations.Acting Liberal Democrat leader Vince Cable said that "an enormous can of worms had been opened up" and the government should have brought in new party funding regulations.
"It's a whole sleazy area; it needs cleaning up because of lack of public confidence, " he said."It's a whole sleazy area; it needs cleaning up because of lack of public confidence, " he said.
He added: "Harriet Harman has a lot of questions to answer ... the issue about why she accepted money that Hilary Benn and Gordon Brown had refused."He added: "Harriet Harman has a lot of questions to answer ... the issue about why she accepted money that Hilary Benn and Gordon Brown had refused."
A ComRes survey suggests that Labour has suffered a six-point slump to 27% in a month, giving the Tories a large lead despite falling one point themselves to 40%.A ComRes survey suggests that Labour has suffered a six-point slump to 27% in a month, giving the Tories a large lead despite falling one point themselves to 40%.
It surveyed 1,002 adults by telephone on 23 to 25 November and the results were weighted.It surveyed 1,002 adults by telephone on 23 to 25 November and the results were weighted.

WHO GAVE WHAT WHEN

UNDER GENERAL SECRETARY DAVID TRIESMAN Janet Dunn 31 January 2003 £25,000 Janet Kidd 06 May 2003 £25,000 Ray Ruddick 18 August 2003 £25,000 UNDER GENERAL SECRETARY MATT CARTER John McCarthy 12 January 2004 £15,000 Janet Kidd 01 April 2004 £10,000 Janet Kidd 27 October 2004 £2,000 John McCarthy 05 February 2005 £25,000 John McCarthy 01 June 2005 £25,000 UNDER GENERAL SECRETARY PETER WATT John McCarthy 22 December 2005 £52,125 Janet Kidd 23 December 2005 £30,000 Ray Ruddick 23 December 2005 £17,850 John McCarthy 21 April 2006 £50,000 Ray Ruddick 24 May 2006 £50,000 John McCarthy 28 June 2007 £35,000 Janet Kidd 29 June 2007 £38,000 Ray Ruddick 29 June 2007 £24,000 Janet Kidd 10 July 2007 £80,000 Ray Ruddick 10 July 2007 £80,000   Total £608,975.00 Source: Electoral Commission

WHO GAVE WHAT WHEN

UNDER GENERAL SECRETARY DAVID TRIESMAN Janet Dunn 31 January 2003 £25,000 Janet Kidd 06 May 2003 £25,000 Ray Ruddick 18 August 2003 £25,000 UNDER GENERAL SECRETARY MATT CARTER John McCarthy 12 January 2004 £15,000 Janet Kidd 01 April 2004 £10,000 Janet Kidd 27 October 2004 £2,000 John McCarthy 05 February 2005 £25,000 John McCarthy 01 June 2005 £25,000 UNDER GENERAL SECRETARY PETER WATT John McCarthy 22 December 2005 £52,125 Janet Kidd 23 December 2005 £30,000 Ray Ruddick 23 December 2005 £17,850 John McCarthy 21 April 2006 £50,000 Ray Ruddick 24 May 2006 £50,000 John McCarthy 28 June 2007 £35,000 Janet Kidd 29 June 2007 £38,000 Ray Ruddick 29 June 2007 £24,000 Janet Kidd 10 July 2007 £80,000 Ray Ruddick 10 July 2007 £80,000   Total £608,975.00 Source: Electoral Commission