David Cracknell and Marie Woolf
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PETER HAIN was clinging to office this weekend as even some of his own aides advised him that he should quit over the donations scandal that has dogged him for days.
The work and pensions secretary yesterday insisted he would get on with his job and that it was “absurd” to suggest he had tried to cover up undeclared donations of £103,000 to his deputy leadership campaign.
Hain faces an inquiry by the parliamentary sleaze watchdog. Controversy has focused on a think tank, the Progressive Policies Forum (PPF), which was set up by a key member of his team and allegedly used to solicit and channel donations to his campaign. It has not held any meetings and has no website.
One member of his inner circle said yesterday: “When we found out about PPF we were shocked. The reaction was that it was probably better for Peter to go now rather than wait to be forced out. But Peter was determined to fight on.”
Hain told friends this weekend he was “horrified” and felt “personally betrayed” by those who had worked for him. “He claims he had no idea any of this was going on,” said one ally.
Hain said he was making “immediate arrangements” to pay back a £25,000 loan from Willie Nagel, a diamond broker, which he received via PPF in October.
With Hain's circle last night trading recriminations, it was reported that one group of aides learnt only a few weeks ago that another faction had been using PPF to channel cash to Hain. They were reportedly furious and threatened to resign.
There was concern among backbenchers over the use of PPF for donations. One former minister said there were “parallels” with the proxy donor scandal involving David Abrahams, the Newcastle property developer, adding: “Why didn’t people pay direct into [Hain’s campaign fund]?”
Peter Kilfoyle, a former Labour defence minister, said Hain should consider his position as the controversy was damaging the government and the Labour party.
A YouGov poll for The Sunday Times today shows the Tory lead over Labour has risen to 10 points compared with a five-point lead in a poll last month.
One donor disclosed this weekend he had been approached by Hain’s campaign staff to give money to PPF, only to be asked weeks later if the money could be given to Hain directly.

Sam Coates's blog about Westminster, politics and spin
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If I left £100,000 of my tax return the Revenue would be down on me like a ton of bricks for the tax, interest and penalties. To say I was too busy, or I forgot about £100,000 would cut no ice. The fact that Gordon Brown did not sack Hain immediately shows this government is dishonest and corrupt from top to bottom.
m hudson, London, UK
Any business with £185,000 turnover must submit audited accounts to HMRC and a declaration of VAT - why should MPs be able to avoid that level of control ? - they are running a business with income, expenses and employed staff and their accounts should be audited. No way then could they "forget" £103,000.
Geoff, Ely, UK
Hains is just another John Prescott without any declared sex scandals as yet.
John, London, England
Let us see the financial accounts especially to see how this 103k was spent. That would be revealing
jtilney, henley, uk
Surely we are more interested in whose bank accounts political donations end up in rather than whose bank accounts they originate from?
Brian Christley, Abergele, UK
The fake tan is actually Rhino Hide, so don't expect a resignation.
Neil, Gloucestershire, England
Another one breaking the eleventh commandment " Thou shalt not get found out".
Alan Nicol, Eindhoven, Netherlands
If I fail to send in my Tax Return by January 31st and claim that it was a genuine oversight and I was REALLY busy, can I assume that I will not be fined?
Anne Campbell, Hurst, Berkshire
New Labour are totally sleazy.
And I say that as someone who voted for them in 1997 and 2001.
But after Blair and Iraq, NEVER NEVER again.
Joe McT, Glasgow,
So poor Peter Hain says he was "too busy" to pay proper attention to deal with making timely declarations of funding as required. If I failed to declare income I could face criminal charges. Just getting my Tax return in late would incur fines. Do you think that the Revenue would be sympathetic if I told them "sorry, I was just too busy with work"? Fat chance.
One rule for them, another for us!
Hypocrites!
Robert Rampton, Birmingham, UK
Politicians are like pigs at a trough. From time to time they get pushed out but always manage to get back, like Mandy. So even if he goes now it will be with a promise to have hime back when the dust settles
Michael, france,
Well said Mike of Sydney! That's what the Scots said about the Scottish Socialist Party leader Tommy Sheridan who is now facing perjury charges.
Duns Scotus, Duns, Scotland
Only a politician could spend £100k and come 5th - no wonder the Govt is in a mess if Ministers can't spend money wisely on their own election campaigns.
John, Prestwood, UK
The devious slimy Hain will never resign, he will need to be dragged away like Blunkett, Mandelson, Byers etc.
These people who are now ministers have never had jobs so having the decency to resign is never an option.
john garrett, colombo, sri lanka
Please don't say...LESSONS WILL BE LEARNT...heard it all before.
John, Essex, UK
He has forgotten what it is like to be poor.
m wilson, bidache, france
Either his honesty or his judgment is lacking. He says he is honest.
Fine, so it's his judgment which failed to make him take the necessary steps to comply with the law. That also makes him someone the country does not need as a senior minister.
Philip Cresswell, Oxford, UK
Its hard to believe someone with a fake tan.
Mike, Sydney,
Knowing the nature of the man, he who clawed his way to almost the top of the dung hill, he will cling on by tooth and claw, an embarrassment. He will never resign. Fire him Gordon and you'll gain ten percent in the polls.The English respect the puritan chancellor.
Keith Bentham, Wigan, Lancashire
If he doesn't quit, I'm voting for the BNP from now on.
Sam Hereford, London, Britain
like most politicians another spineless wonder !!
if i did not fill in a DSS form i would have any benefit stopped. so when he did not fill in the apropriate form's his pay should be stopped, maybe he would then get to apreciate how the sick on incapacity benefit feel like being persued and haunted by the faceless Mr Blimp's from the DSS. he must go NOW !!
peter watson, ardrossan, ayrshire uk