Small firms swell party coffers

British businesses are flocking back to the Conservative Party with financial support to help build up its war chest ahead of the general election.

Last year was a record for corporate donations, and there is no sign of any downturn in the near pounds 5m that was handed over then.

However, the Labour Research Department has detected a shift in the pattern of political donations, which has seen the majority of contributions coming from small and medium-sized businesses. This has has more than offset a fall- off among quoted companies - current LRD research shows just 60 plcs donating pounds 1.4m against 112 plcs donating pounds 2m a year ago.

The big increase in company donations from non-quoted companies is born out by the increase in their attendance at fund-raising dinners among the business community, which in some regions has trebled in the last year.