The Guardian

By Rob Evans and David Hencke

20 October 2006

The number of donors who were nominated for peerages by political parties has risen markedly, it emerged last night. BBC's Newsnight programme said there appeared to be "an explosion" in the number after the Labour and Tory parties hit financial trouble due to the huge amounts spent to fight the 2005 general election.

The connection between donations and peerages has been scrutinised by Scotland Yard detectives for the past seven months, in an investigation now believed to be drawing to a close.

The latest figures were disclosed under freedom of information legislation by the Lords Appointments Commission, which vets nominations.

In the 27 months between July 2003 and October 2005, the two parties nominated eight donors to become members of the House of Lords. In the nine months between October 2005 and July this year, they nominated 11 donors.

Elfyn Llwyd, leader of Plaid Cymru and one of the MPs who reported the "cash for peerages" allegations to Scotland Yard in March, said: "These figures ... confirm the impression that something murky has gone on at the top."

The commission has refused to release the names of nominated donors since 2003, saying the information would infringe the donors' privacy.

The Scotland Yard inquiry began when it emerged that four businessmen who gave large loans to Labour had been recommended by the party for peerages but were rejected by the commission: Sir David Garrard, a property developer; Barry Townsley, a stockbroker; Chai Patel, the head of the Priory Clinic, and Sir Gulam Noon, the curry tycoon. The commission also blocked car importer Robert Edmiston, a Tory donor, from becoming a peer. He had been nominated by the former Tory leader Michael Howard.