Conran snub for the PM

Sir Terence Conran has snubbed Tony Blair because of Iraq.

The restaurant and retail guru refused to sign a letter from leading business people backing Labour's handling of the economy because he objected to the way Mr Blair led Britain to war.

He was one of three leading Labour donors who withdrew their support from the letter, which was signed by 63 people and published in the Financial Times. Tim Waterstone, the bookshop chain founder, and David Potter, chairman of Psion, also refused to sign.

All three signed similar letters backing Mr Blair before the 2001 and 1997 elections. Sir Terence became a friend of Mr Blair and the Prime Minister chose his Pont de la Tour restaurant for a dinner with Bill Clinton.

A spokesman for Sir Terence said he disagreed with Mr Blair on several issues, but the main ones were Iraq and university tuition fees.

Giving his reason for withholding support, Mr Waterstone said: "For me it was the single issue of Iraq. The invasion was a shameful and disgraceful action. I think Blair should have resigned and Gordon Brown should now be prime minister." Mr Waterstone told the Independent he may not vote Labour next week. Mr Potter said Iraq had undermined his trust in the Prime Minister, and raised questions of judgment about the Cabinet.

There was further controversy over the FT letter when it emerged that nearly a third of signatories had been given posts on quangos under Labour. One in 10 were long-standing donors and some had received honours.

The names include Trevor Beattie, head of Labour's election marketing, and Sir Chris Evans, boss of Merlin Biosciences, who was knighted in 2001 and heads the Prime Minister's council for science and technology.

Also signed up are Lord Hollick, who is taking over the running of the South Bank arts centre; Sir Gulam Noon, who is on an advisory board on nationalisation and Lord Leitch, who heads a review into higher education.