TONY Blair secured £14MILLION from secret loans at the centre of the “cash for peerages” scandal.
Labour was yesterday forced to admit it had borrowed the cash to fight last year’s General Election.
Officials refused to name the mystery backers — or say how many there were.
The sleaze row engulfing Labour deepened amid claims that the loans were used to dodge party funding rules brought in by Mr Blair.
Labour’s high command issued a hasty email to assure MPs the money had not vanished into a slush fund.
Confirmation that Labour banked £13,950,000 comes after party treasurer Jack Dromey revealed he was “kept in the dark” over the money.
Ordinary donations have to be declared but loans do not — meaning the source of the cash remains anonymous.
But ex-Downing Street adviser Lord Haskins claimed yesterday: “I do not think for one moment any of these lenders ever had any intention of asking for their money back.
“In two to three years time the loans would have been quietly written off and that would have been history. It looks a bit dodgy.”
A senior party figure confirmed there was a ploy to ask some lenders to convert loans into donations.
The source said: “You could go back later and get the lender to say, ‘OK it will be a gift and we’ll make it public’.”
Three businessmen — Chai Patel, Sir David Garrard and Barry Townsley — loaned Labour about £4.5million. They were then nominated for peerages.
The rest of the £14million came from unnamed backers — fuelling fears that Mr Blair, who yesterday visited his constituency in Sedgefield, Co Durham, is now in hock to tycoons looking for kickbacks.
It is a severe embarrassment to the PM, who brought in rules that donations over £5,000 must be published. He also promised to be “purer than pure” if he won power.
Yesterday 15 of the party’s biggest donors denied lending the cash.
Labour spent £18million on winning Mr Blair’s historic third term in 2005.
Last night party chairman Ian McCartney wrote to MPs stressing there was no slush fund.
He said: “All funds raised were spent on re-electing Labour MPs.”
Details will be revealed in the party’s annual report in the summer — but the dozen lenders will not be named.
By MICHAEL LEA at The Sun
Political Correspondent
Saturday, March 18, 2006
New Labour Mayor dodges fraud charges
A MAYOR declared himself too ill to face a court on benefit fraud charges — but turned up 48 hours later at a SOCCER match.
Labour councillor John Walker, 55, braved freezing weather to cheer on his Liverpool heroes as they thrashed Fulham 5-1.
Earlier he cried off from court because of high blood pressure.
Councillor Walker is Mayor of Sefton, Liverpool. Wrapped in fleece jacket and a heavy scarf to ward off the cold winds, he was snapped at Wednesday’s Premiership match as he chatted to a fellow fan.
One supporter said: “He was standing up from his seat. It didn’t appear to me that he was ill in any way.”
Mr Walker said last night:
My blood pressure is 186 over 105 — that’s why I couldn’t go to court. I went to the match as a form of relief.
I was taken to the game, dropped off near the ground and walked a short distance to the stadium. I was picked up afterwards, too.
I think turning up at a court hearing is a tad more stressful than going to a football match.
The game was relaxation — am I not fit enough to do that?
I can’t believe somebody has taken a picture of me at Anfield. I’m being hounded. It’s outrageous.
He faces three counts of false accounting and one of failing to report a change in circumstances.
The case was adjourned until April 27 . . . two days before Liverpool face Aston Villa at Anfield.
By GUY PATRICK at The Sun
Labour councillor John Walker, 55, braved freezing weather to cheer on his Liverpool heroes as they thrashed Fulham 5-1.
Earlier he cried off from court because of high blood pressure.
Councillor Walker is Mayor of Sefton, Liverpool. Wrapped in fleece jacket and a heavy scarf to ward off the cold winds, he was snapped at Wednesday’s Premiership match as he chatted to a fellow fan.
One supporter said: “He was standing up from his seat. It didn’t appear to me that he was ill in any way.”
Mr Walker said last night:
My blood pressure is 186 over 105 — that’s why I couldn’t go to court. I went to the match as a form of relief.
I was taken to the game, dropped off near the ground and walked a short distance to the stadium. I was picked up afterwards, too.
I think turning up at a court hearing is a tad more stressful than going to a football match.
The game was relaxation — am I not fit enough to do that?
I can’t believe somebody has taken a picture of me at Anfield. I’m being hounded. It’s outrageous.
He faces three counts of false accounting and one of failing to report a change in circumstances.
The case was adjourned until April 27 . . . two days before Liverpool face Aston Villa at Anfield.
By GUY PATRICK at The Sun
Wednesday, March 01, 2006
New Labour uturn on water taxing
Water firm's landmark meters win
1 March 2006
Millions of families could be forced to have water meters following a landmark ruling by ministers.
Folkestone & Dover Water has been granted the power to install compulsory water meters in 200,000 homes, in a landmark ministerial ruling which could affect millions of families.
Industry experts believe other water companies will follow suit now Environment Minister Elliot Morley has given Folkestone & Dover Water the green light.
Britain faces one of the worst droughts for 100 years after two consecutive dry winters.
Major house-building programmes are placing additional strain on the South and East.
The Government's Environment Agency last week announced it favoured compulsory metering in southern England.
However, the move is highly controversial because critics see it as rationing by price.
Labour fiercely opposed compulsory metering in Opposition, calling them a "tax on family life".
The Folkestone & Dover firm applied for "water scarcity status" which gives it strong powers over supplies and use.
Car washes could be shut down and parks go unwatered in times of drought. The application, the first of its kind, allows the firm to introduce compulsory water meters. The company aims to ensure 90% of its customers use meters by 2015, according to the Daily Mail.
1 March 2006
Millions of families could be forced to have water meters following a landmark ruling by ministers.
Folkestone & Dover Water has been granted the power to install compulsory water meters in 200,000 homes, in a landmark ministerial ruling which could affect millions of families.
Industry experts believe other water companies will follow suit now Environment Minister Elliot Morley has given Folkestone & Dover Water the green light.
Britain faces one of the worst droughts for 100 years after two consecutive dry winters.
Major house-building programmes are placing additional strain on the South and East.
The Government's Environment Agency last week announced it favoured compulsory metering in southern England.
However, the move is highly controversial because critics see it as rationing by price.
Labour fiercely opposed compulsory metering in Opposition, calling them a "tax on family life".
The Folkestone & Dover firm applied for "water scarcity status" which gives it strong powers over supplies and use.
Car washes could be shut down and parks go unwatered in times of drought. The application, the first of its kind, allows the firm to introduce compulsory water meters. The company aims to ensure 90% of its customers use meters by 2015, according to the Daily Mail.
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