City donors swell Tories' war chest

The Tories today claimed they have raised two thirds of the £25 million war chest needed to fight the next election.

Among big City donors who have swelled Michael Howard's election coffers are Swedish-born entrepreneur Hans Rausing, the billionaire head of the Tetrapak food packaging empire and one of the world's richest men.

He gave £198,000 last July and is expected to make another substantial gift for the campaign fund.

Maurice Bennett, cofounder of the high street fashion chain Oasis, has given £450,000 while betting tycoon Stuart Wheeler gave £236,000.

Jonathan Marland, the new chairman of the Conservative treasurers, said some £17 million-had been either given or pledged. And he claimed support in the City had revived compared with five years ago.

"We are finding a lot of support in the City, whereas we didn't five years ago," he told the Financial Times. "I think people feel too much regulation and taxes are starting to come home."

Labour has also suffered a lean period for big donations, in contrast with the huge cheques banked when the party first won power.

Party chiefs say they expect bigger private gifts when the election campaign starts but privately admit they will rely more heavily on trade union money.