Harman to return campaign donation

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The Leader of the House and Labour Party chairman insisted she had "no reason to believe" the cash had come from anyone except Janet Kidd when the cheque arrived on July 4.

In fact Ms Kidd was acting on behalf of millionaire property developer David Abrahams.

Ms Harman said in a statement: "I had no reason to believe that this donation was coming from anyone other than Janet Kidd.

"My campaign team understood Janet Kidd to be a regular Labour Party donor."

She added: "I first heard about this on Friday and my campaign has today arranged to return the donation to Janet Kidd."