Tories face donations for honours row

Leading Tory donors are to receive peerages next month in a fresh "cash for honours" row, it was claimed today.

Three wealthy backers who have together given the party more than £2.3 million are said to be in line for "working peerages" to be announced by Downing Street in the New Year.

They are former Tory Treasurer Sir Stanley Kalms, Irvine Laidlaw and Leonard Steinberg.

The Tories have been allowed six places in a list of new working peers, the first such appointments since the last general election, according to reports today.

There is speculation the remaining three places on the list of six will also be filled by "six-figure" Conservative donors.

The offer of peerages to the trio is thought to have been made under Iain Duncan Smith's leadership - but that Michael Howard has not objected to it. He is now braced for a political row over the appointments.