Westminster was plunged into another “cash for access” row last night, after a Labour peer admitted taking money from an arms company lobbyist. The lobbyist then attended a meeting with the government minister in charge of weapons purchases.

Lord Hoyle reportedly accepted an undisclosed sum from the lobbyist, who met Lord Drayson, the defence minister in charge of billions of pounds of arms trade.

The Guardian said that documents released by the Ministry of Defence revealed that money changed hands between Lord Hoyle and Michael Wood, a former RAF officer who works for arms companies to help them to get contracts.

A meeting then took place between Lord Drayson and Mr Wood in the House of Lords on June 23, 2005, although accounts vary as to how exactly it was arranged.

Lord Hoyle, a former whip who as Doug Hoyle was MP for Warrington, accepts that he was approached to arrange a meeting with Lord Drayson, for Mr Wood “to say hello to the new minister”.

Lord Hoyle told The Guardian that the minister was asked to come to the bar, where Mr Wood was waiting. He said he told the peer that the lobbyist would like to meet him.

However, Lord Hoyle’s solicitor said: “Lord Hoyle and Mr Wood were enjoying a social meeting in the bar. Lord Drayson was present at the bar although he was not sat with Lord Hoyle and Mr Wood. Lord Hoyle introduced the two to each other on a purely social basis. The parties held only a brief conversation during which they exchanged pleasantries.”

This reportedly contradicts the version of events detailed in the MoD documents. The Guardian claims that Mr Wood used the encounter to outline the interests of his lobbying company and his client and made “frank” remarks about other arms companies.

It is also claimed that he used his ministerial introduction to call Lord Drayson three days later, for a minuted personal conversation. Lord Hoyle told the newspaper he “did not know” whether he had told the minister at the time that he was in the pay of a lobbyist.

Mr Wood, who has free movement within the Palace of Westminster through a “research assistant” security pass, declined to comment about his alleged payment to Lord Hoyle.

While the facilitating of ministerial meetings does not directly violate the peer’s code of conduct, the allegations are likely to renew concerns about ethical standards in Parliament.

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