Key donors 'made Labour drop poster'

Labour withdrew its controversial election posters after prominent Jewish donors complained they were anti-Semitic, it is claimed today.

Sir Sigmund Sternberg, one of the party's biggest backers, insisted the offending images portraying Michael Howard as a Faginlike character be withdrawn. The Jewish Chronicle claims today that Sir Sigmund emailed Labour general secretary Matt Carter to demand the posters be scrapped.

The philanthropist and property developer was one of a number of high-profile Jewish figures who were outraged at the image.

Sir Sigmund gave Labour more than ?100,000 before the last general election and has been one of its most reliable donors. The advertisement, together with one depicting the Tory leader and shadow chancellor Oliver Letwin as flying pigs, triggered accusations that Labour was attempting to highlight the men's Jewish background. Labour has vigorously denied any such intention but decided to withdraw the ads earlier this week in recognition that some had found them offensive. Critics pointed out that the party had already been warned against perceived anti-Semitism.

The revelations came today as Labour unveiled its latest advert attacking Mr Howard. Today's Times carries a full page ridiculing his "I Believe" pledge of last year. It is the latest to be devised by TBWA, the agency run by Trevor Beattie.