Knighted donor denies cash link

The millionaire Indian food entrepreneur Gulam Noon yesterday insisted there was no connection between his donations to the Labour party and his knighthood awarded in the Golden Jubilee Birthday Honours List.

The Prime Minister's spokesman stressed that donations of more than £100,000 to the party had not influenced the award, echoing Sir Gulam's remarks. But a Labour backbencher has expressed concern about the honour, re-igniting the cash-for-favours row that seems fated to dog Tony Blair.

Jeremy Corbyn, MP for north Islington, said: "I'm very disturbed about the way this knighthood has been awarded. It seems to me that those who make large donations to any political organisation and subsequently receive major honours rather devalues the whole honours system.

"There are many people in this country who put in enormous efforts in a community spirit and get no recognition for it at all. Public awards ought to be for them, not people who can afford to gain publicity by large donations."

Downing Street swiftly attempted to smother the criticisms and the Prime Minister's official spokesman – and the Leader of the Commons, Robin Cook – insisted the donations had not influenced the award, which had been approved by the all-party honours scrutiny committee.

The spokesman said Sir Gulam was a "very fine industrialist and philanthropist" and added: "He has expanded his small family business into one of London's major companies and has made a significant contribution to the wider economy."

In an interview with BBC Radio 4's Today programme, Sir Gulam, whose company Noon Products – now part of WT Foods Group – was set up as a family business specialising in frozen and chilled Indian food and now employs hundreds of people, said: "It has absolutely nothing to do with my knighthood. I helped to create a unique industry and like to think that I have received this honour on merit."

Asked if had expected to get anything in return, Sir Gulam insisted: "Nothing. Absolutely nothing. The general secretary of the party, to whom I gave the money ... I mentioned that I am expecting nothing. "

Another controversial award was a CBE given to Brian Cass, 55, head of Huntingdon Life Sciences, the pharmaceuticals research firm that carries out tests on animals. It has already prompted protests from animal rights campaigners.