Brown accused of cronyism
Updated on 30 May 2007
Gordon Brown has been accused of cronyism over donations to his Labour leadership campaign.
Electoral commission figures reveal that Mr Brown received just over £100,000 in cash donations. The Conservatives claimed three contributors had each been given senior positions in independent Government reviews - and were now 'paying the Chancellor back'.
It is also emerged that Mr Brown proposed one of those donors for a knighthood, although he was turned down. Mr Brown's supporters said it was 'sadly typical' of the Tories to impugn the integrity of individuals because they didn't happen to be Conservatives.
Drenched in Leicester for a campaign hustings tonight, Gordon Brown has also had a more welcome shower of donations from wealthy businessmen.
As the prudent chancellor knows, getting out and about costs money, and today for the first time we found out where it was all coming from. The Conservatives
Figures released today by the Electoral Commission show that Gordon Brown received almost £102,000 in donations.
Some £25,000 came from Lord Paul through the company he founded Caparo Industries.
Lord Paul, an award-winning businessman, admitted to Channel 4 News tonight that he did not pay tax on any overseas earnings because he was not domiciled in the UK for tax purposes.
Wealthy foreigners who are resident in Britain but claim their domicile is overseas pay no tax on their worldwide income unless the money is brought into the UK. That's an embarrassment to the chancellor, who has so far failed to live up to a promise five years ago to review non-domicile tax status.
Lord Paul told us: "I pay a lot of tax in the UK unfortunately. I don't pay tax on what I earn abroad but I don't earn much abroad. I have a right to be non-domiciled. Everybody who is born abroad is a non-domicile."
' pay a lot of tax in the UK unfortunately. I don't pay tax on what I earn abroad but I don't earn much abroad'Lord Paul
Paul Myners, the former chairman of Marks & Spencer, donated £9,700, Lord Leitch £5,000 and John Miskelly £2,000.
Mr Myners has done two city reviews for the Treasury in 2000 and 2004. He was given a CBE in 2003. But a former colleague of the chancellor told Channel 4 News that the Treasury wanted him to receive a higher award, like a knighthood.
Lord Leitch carried out a review of skills for the Treasury in 2004 and Mr Miskelly was appointed to a panel on public services in 2000.
Labour Peer Lord Bhattacharyya gave £25,000. Gordon Brown visited his industrial programme in Warwick just nine days ago.
The Tories accuse the chancellor of reaping the rewards after years in which he's handed his friends government work.
When Gordon Brown formally became the prime minister in waiting a fortnight ago he vowed to restore trust in politics as a priority.
His supporters admit privately that the controversy over his campaign donors is yet another signal that political funding needs to be reformed. But allies defend his benefactors to the hilt.
