THE government is seeking to change regulations to allow charities to engage in "political activities", sparking fears that they will be used as a front for hiding political donations.

The announcement coincides with an official investigation into whether a charity with links to Gordon Brown has broken the rules by engaging in political activities.

The Conservatives last week contacted the Charity Commission to request an urgent meeting to discuss the proposal, made by Ed Miliband, the Cabinet Office minister.

A Cabinet Office document published last week said: "Charities should be free to participate in appropriate ways in political activities. There are clear benefits to society from allowing charities to do so."

Under the plans charities would be allowed to make political activities their main purpose, although parties would not be able to convert to charities. Think tanks and other political organisations could therefore qualify for tax relief on donations.

Greg Clark, the Conservative charities spokesman, said: "This would allow a whole new unregulated way of political campaigning."

Earlier this year the Charity Commission began an investigation into whether the Smith Institute had broken charity rules. It had been accused of funding policy research for Brown while he was still chancellor.

The institute held dozens of meetings at 11 Downing Street and is headed by Wilf Stevenson, a close friend of Brown. The Charity Commission, which has yet to finish its inquiry into the institute, will "review" the rules on political activity by charities in the autumn. If it fails to adopt government recommendations, ministers may introduce legislation.

The Cabinet Office said the change answered charity requests to be allowed to "campaign for changes in the law to support their charitable purpose", adding: "They cannot support political parties."

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