Police to investigate Labour Party donations amid new revelations

1.52.18pm UTC (GMT +0000) Mon 3rd Dec 2007

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The Metropolitan Police have launched an investigation into secret donations to the Labour Party. The Electoral Commission asked them to investigate after it emerged Labour received more than £650,000 from David Abrahams via middlemen. Harriet Harman yesterday appeared to implicate Gordon Brown in the affair by revealing it was his leadership campaign manager, Chris Leslie, who suggested Janet Kidd as a possible donor. But Downing Street has played down reported tensions between Mr Brown and Ms Harman. Durham Police are to speak to Chris Huhne, after he raised questions about the decision to allow a company controlled by Mr Abrahams to build a business park in County Durham. In a separate development Peter Hain has said he failed to register a £5,000 deputy leadership campaign donation from Labour's chief fundraiser, Jon Mendelsohn, blaming an "administrative error".

Acting Liberal Democrat Leader Vince Cable said "It is essential to establish the facts in this case, and for anyone who has broken the law to face the consequences of their actions. The police should investigate this matter fully and the Crown Prosecution Service should make an assessment as to whether charges should be brought against those individuals who are implicated in what looks like criminal behaviour."