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.”

Expert View

In the long term, Peter Hain’s career in Government looks over

Greg Hurst, Political Correspondent of The Times

• More

• Post a comment

Related Links

• Q&A: is Peter Hain's ministerial career over?

• Is it all over for Peter Hain?

• Hain advised to quit over £100,000 donations

Multimedia

• Red Box blog: Hain document and donors in full

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.

Times Recommends

• 6 reasons not to give gifts this Christmas
• Remembrance Day: All the lonely heroes