Watchdog probes Osborne donations

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Standards Commissioner John Lyon's investigation was triggered by a complaint from Labour MPs John Mann and Kevan Jones over some £500,000 in donations received by Mr Osborne.

Although the money - paid through the Conservative Party - was declared to the Electoral Commission, it was not included in his personal entry in the House of Commons Register of Members' Interests, even though some of the donors had specified that the money should go towards the cost of running his office.

In a statement, Mr Lyon said: "The Parliamentary Commissioner for Standards has received a formal complaint alleging a failure by Mr George Osborne MP to record financial donations to his office in the Register of Members' Interests.

"The Commissioner is making inquiries in respect of this complaint in accordance with the published procedures.

"He will not be making any further statement on this complaint or give reports on the progress of his inquiries. He will report as necessary on this matter to the Committee on Standards and Privileges."

The investigation comes as Mr Lyon is inquiring into complaints made against Work and Pensions Secretary Peter Hain over £103,000 donated to his failed campaign for the Labour deputy leadership, which he did not declare in the register.

Mr Osborne has said he consulted the House of Commons authorities about the donations he received but the rules were unclear.

Tory leader David Cameron said on Monday: "Our chief whip had a meeting with the registrar to discuss these issues. The advice from that was unclear and taken to mean it didn't need to be declared. We have now asked for urgent advice.

"In whatever way they want these things to be declared, we will declare them. We have absolutely nothing to hide."