Cameron's party in donation blunder

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The Witney Conservative Association has agreed to forfeit the sum to public funds because the benefactors were not on the UK electoral roll.

The news will be embarrassing for the Tory leader, who has been scathing in his criticism of Labour over the "proxy" donors scandal.

However, aides insist privately that the latest funding incident was the result of a "genuine mistake", and point out that Mr Cameron has stressed that errors will always occur at a local level.

Records on the Electoral Commission website show that two donations received by the association on August 21 this year were subsequently found to have been impermissible.

Roger Fletcher gave £5,900, while Geoffrey Dobbs provided an auction prize worth £1,500.

A total of £7,400 was handed over to the Electoral Commission on November 16.

A Tory spokesman said: "As soon as we became aware that these two donations were not permissible we declared and voluntarily forfeited them to the Electoral Commission."