Harriet Harman rebuked after declaring £64,000 of elections donations and loans late

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Labour's deputy leader Harriet Harman was rebuked by election watchdogs last night for failing to report £64,000 of loans and donations on time.

The Electoral Commission wrote to Miss Harman saying it regarded the late registration of such large sums as a "serious matter".

The rap on the knuckles is an embarrassment for the minister, who is leading the drive to restore trust in political funding in her other roles as leader of the Commons and Labour chairman.

But she also received some comfort with the news that police have dropped an inquiry into a separate donation she accepted for her successful deputy leadership campaign.

The Metropolitan Police was investigating whether Miss Harman broke the law by accepting £5,000 from Janet Kidd, a secretary of David Abrahams, the North-East property tycoon.

Anti-sleaze laws forbid the channelling of political donations through third parties. Donations must be transparent and their real source identified to the Electoral Commission, which maintains registers of financial support.

Miss Harman promised to repay the £5,000 after controversy erupted last year.

Last night, police said no further action would be taken against Miss Harman, though its wider probe into more than £650,000 allegedly donated to Labour by Mr Abrahams through proxies is continuing.

Gordon Brown has admitted the money was given "unlawfully".

The Electoral Commission said it had completed a separate investigation that had identified loans of more than £58,000 and donations totalling £6,001 to Miss Harman's deputy leadership campaign which were reported late.

The loans were £40,000 from the Halifax, understood to be an overdraft extension, and £18,000 from Miss Harman's sister Sarah, a lawyer.

A spokesman said: "Having reviewed all the evidence, the commission has decided not to refer this late reporting to the police.

"However, we have written to Harriet Harman making clear that failure to report on time is a serious matter and that we expect her to comply with the rules."