LABOUR defended its decision to award peerages to generous party donors yesterday, saying that longstanding supporters deserved a place in the Lords.

Downing Street is engaged in an unprecedented stand-off with the House of Lords Appointment Commission, which has refused to ratify three Labour nominees for the Upper House. The commission has blocked the elevation of Chai Patel, Sir David Garrard and Barry Townsley. A fourth nominee, Robert Edmiston, who gave money to the Tories, has also been queried. Government ministers have so far avoided getting involved in the row, but yesterday Lord Falconer of Thoroton, the Lord Chancellor, who is a close friend of Tony Blair, defended the decision to award peerages to donors.

Supporters, especially those who stood by Labour during their many years in opposition, should not be denied an honour, he said. “I don’t take the view that making a contribution to a political party in which you believe debars you from any honour,” he told BBC Radio 4. “If you accept that, then what you need is some body to ensure that there is propriety in the honour or the appointment to the Lords, but you should not be prevented because you, for example, believe that Labour should have been supported over the years it was in the wilderness.

“That should not debar you in any way at all from being a peer. You have a choice. You either say people who give money to political parties can’t get an honour and I don’t think that would be right or sensible.”

Challenged over a recent report that showed that every donor who has given more than £1 million to Labour had received either a knighthood or a peerage, Lord Falconer insisted that did not mean people could buy peerages. “Absolutely not, no. You are not guaranteed a peerage,” he said.

Downing Street officials are in talks with the commission to try to persuade its members to change their minds. But, as The Times revealed this week, relations have soured after it emerged that the Labour leadership failed to disclose a loan from Sir David. Dr Patel has said that the speculation surrounding his case was damaging his reputation.

RICH BACKERS

Lord Sainsbury of Turville £6.5 million

Lord Paul Hamlyn (deceased) £6 million

Sir Christopher Ondaatje £3 million

Lord Paul Drayson more than £1 million

Sir Ronald Cohen more than £1 million

William Haughey OBE more than £990,000

Derek Tullet CBE more than £650,000

Sir David Garrard £200,000

Sir Alan Sugar £200,000

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