Millionaire Tory donor withdraws support for Cameron's 'arrogant Old Etonians'

Millionaire Sir Tom Cowie, 84, threw the Tories into turmoil by vowing not to hand over any more money after becoming disillusioned by the party leader.

The entrepreneur - who has pumped at least £630,000 into the party's coffers since 2001 - said he was "very, very disappointed" by a series of damaging blunders.

He was especially scathing about Mr Cameron's controversial decision to end support for grammar schools and criticised his visit to Rwanda while his Oxfordshire constituency was suffering flooding.

Quizzed about the state of the Conservatives, Sir Tom said: "Are you sure you don't want to hear foul language? All I can say is I am very, very disappointed.

He said: "He seemed very bright, very breezy, very confident. But the direction he is taking the Tory party has left me feeling very disappointed."

However, Sir Tom insisted he would not defect to Labour - and attack Gordon Brown's record on taxing pensioners. Mr Cameron shrugged off the criticism and insisted the Conservatives must not ditch its policies of modernisation.

His spokesman said: "The Conservative Party is changing under David Cameron and as a result many new supporters and donors have been attracted to the party.

"There will always be a few people who feel uncomfortable with the changes that need to be made but now is not the time to abandon our strategy but to re-affirm it.

"Britain needs a new government with new ideas and Gordon Brown cannot be the change the country needs."

Mr Cameron was backed by senior front-bencher William Hague who said he was "unconcerned" by Sir Tom's outburst.

The shadow foreign secretary said: "Whenever you embark on a process of very serious change there are bound to be people who feel uncomfortable with it from time to time."

But it is the latest in a long line of headaches for the Tory leader.

Last month, former Conservative treasurer Lord Stanley Kalms warned of "a summer of discontent" and said he was "disillusioned to a substantial degree" with Mr Cameron.

He also faced flak when former party chairman Lord Saatchi warned that concentrating on 'nicey nicey' politics would not win the next election.

Criticism intensified after the Tories came third in the Ealing Southall and Sedgefield by-elections and fell nine points behind Labour in the polls.

• The UK Independence Party was yesterday ordered by a judge to pay back £18,400 after it admitted breaking rules on donations to political parties.

The money was given to the anti-EU party by businessman Alan Bown while he was not on the electoral register.

Party leader Nigel Farage said he was "deeply relieved" by the judgement because the Electoral Commission wanted UKIP to hand over £367,000 donated by the retired bookmaker between December 2004 and January last year.

But JPs in the City of Westminster, deciding whether UKIP must forfeit the money, ruled the breach of the law was accidental.