Two cabinet ministers, Alan Johnson and Patricia Hewitt, have become embroiled in a row about Tony Blair’s £5 billion city academies programme after it emerged that they held meetings with academy sponsors.

They held the meetings in their constituencies at the same time as their departments were involved in policy decisions that could affect the potential sponsors. Several junior ministers also had similar dealings with academy sponsors.

Sir Alistair Graham, chairman of the standards committee, is to be asked to investigate. The ministerial code of conduct stipulates that ministers must separate their local constituency work from their official government business.

Norman Baker, the Liberal Democrat MP who will ask Graham to investigate, said: “The creation of academies in this way raises questions over conflicts of interest.”

Police are already investigating whether sponsors may have been offered honours in return for backing academies, following a Sunday Times investigation.

Johnson, the former minister at the Department of Trade and Industry who became education secretary in May, held academy talks with Adrian Beecroft, a venture capitalist whose firm was facing the possibility of a DTI investigation into its conduct.

Beecroft, chief investment officer of Apax Partners, personally pledged £2m to Pickering High school in Johnson’s constituency of Kingston upon Hull West.

At the time that the sponsorship was negotiated, the DTI was under pressure to investigate a deal involving Apax that resulted in more than 500 workers at British United Shoe Machinery losing their pensions.

Hewitt, who was Johnson’s predecessor at the trade department, was reported in June 2005 to be in favour of an inquiry and to be talking to Johnson about it. But Apax was never investigated.

Hewitt, now health secretary, has also confirmed a direct involvement in the academies programme. She held talks over plans for New College, an academy in Leicester sponsored by David Samworth, a local businessman. Hewitt admits meeting Samworth on “several occasions” but states that she did not solicit any sponsorship.

Samworth Brothers is the maker of Ginsters pasties, which could be affected if Hewitt imposed advertising restrictions and health warnings.

A spokeswoman for Hewitt said: “With regard to New College, yes she is obviously involved with the proposal . . . as a constituency activity and trying to take it forward.

“But she hasn’t been involved and wouldn’t expect to be involved in fund arrangement issues. She has met the Samworths.”

The role of Richard Caborn, the sports minister, in the city academies programme has emerged in a letter released to The Sunday Times under the Freedom of Information Act.

The letter, dated April 21, 2004, followed a meeting involving Caborn, Meg Munn, a junior minister for women, and Jonathan Crossley- Holland, director for education at Sheffield city council.

Crossley-Holland told Sir Bruce Liddington, head of the academies division at the education department, that Caborn, the local MP, was “contacting a range of sponsors personally know(n) to him including Bernie Eccleston(e) and David Sainsbury”.

Caborn has been responsible for brokering a deal between Ecclestone and the British Racing Drivers’ Club, the owner of Silverstone, to ensure that Formula One continues to hold an annual race in Britain. It is thought that the circuit may receive tax breaks.

Yesterday Caborn said that he had never actually contacted Ecclestone and another sponsor had ultimately backed the academy. He said he had suggested names of people to approach for sponsorship, but would not say if they included Ecclestone or Sainsbury.

Stephen Ladyman, a junior health minister from 2003 until 2005, said this weekend that he had been involved in discussions with Pfizer, the pharmaceutical company, which gave £1m in sponsorship to Marlowe Academy in Kent. It had opened in September 2005.

In October 2004, the Department of Health negotiated a new pricing agreement for prescription drugs on the National Health Service with the Association of the British Pharmaceutical Industry (ABPI), a trade body dominated by pharmaceutical giants including Pfizer. A group of 40 smaller firms complained that it was unfair to them and the Office of Fair Trading subsequently launched an investigation.

Ladyman, who also used to work for Pfizer, said: “My involvement was only as somebody who wanted to see the project succeed, so I met the people who were being lined up to take part . . . so they’d know that the academy was going to have political support from the local MP.”

Ladyman, who is now a transport minister, states on his website that he campaigned for £64m of government funding for a road in his constituency, which would help Pfizer: “It (the road) will help us make Port Ramsgate and the airport a success, help Pfizer grow stronger, relieve congestion, unlock the development of the Richborough corridor and boost local employment.”

Phil Hope, MP for Corby, was a parliamentary private secretary and then junior minister in John Prescott’s department from 1999 until 2005, while Bee Bee Developments, a regeneration company, was seeking planning permission to build thousands of homes.

Bee Bee Developments became part-sponsor of Corby Community College and the school received approval in January 2004. Hope is now a junior education minister.

The education department said: “As constituency MPs, both Alan Johnson and Phil Hope will have met promoters of schools in their own constituencies; there is no need to disclose such contact to the permanent secretary. Neither minister has taken or will be involved in any DfES (education department) decisions relating to these academy projects.”

Explore UK News

• Crime News

• Education News

• Health News

• Scotland News

Times Recommends

• Should Knox’s trial even have reached the courtroom?
• All that glitters is not sold in Wright’s world
• Believe it or not, Big Brother is your friend