Crumbs of discomfort for Tory financiers

The Tories suffered a blow to morale yesterday when United Biscuits announced it was to stop making donations to the Conservative Party, and urged the Government to provide state funding for political parties.

The company donated £130,000 to the Tory election fund in 1992, but cut its contribution to £40,000 in 1993. No donations were made last year.

"The board of United Biscuits has reviewed its policy on political donations and has decided that, in view of the increasingly international nature of its business, it is now inappropriate to make contributions to any political party in the UK or any other country," the company said.

The announcement will fuel speculation that other Tory donors could pull out, leaving the party with acute problems in reducing its £15.8m overdraft in time for the election campaign.