Osborne: I made a mistake
Shadow chancellor George Osborne has admitted he made a mistake in being party to discussions about soliciting a donation from a Russian oligarch.
Speaking to The World at One, Mr Osborne strenuously denied trying to solicit a donation from Oleg Deripaska but admitted the incident had damaged his reputation.
“It’s not what you say or do but how it looks,” he said.
“To be honest this didn’t look very good and that’s something I regret.”
Labour responded immediately to the statement, with Geoff Hoon, transport secretary, saying it highlighted Mr Osborne’s defects as a politician.
“George Osborne’s judgement is wrong,” Mr Hoon said.
“And, once again, it is because he creates headlines on the hoof without care for the consequences. His mistakes just go to show why this is no time for a novice.”
Mr Osborne landed himself in a disastrous political storm by meeting with Mr Deripaska during a summer holiday in Corfu. He admitted discussing the possibility of a donation, but stressed the idea was ruled out.
But the fiasco had negative after-effects for the Conservatives, with the Sunday papers full of other instances of questionable Conservative donations.
It is against British law for foreign donors to give money to British political parties through UK businesses.
The comment comes as it was revealed Mr Osborne has been dropped from his role as fundraiser following talks with party leader David Cameron.
The shift highlights the consternation within Tory ranks at what is widely regarded as Mr Osborne’s lack of judgment in meeting with Mr Deripaska.
In a seperate development, Vince Cable, Liberal Democrat economics spokesman, called on the Royal Bank of Scotland to ensure a loan it gave to one of Mr Deripaska’s companies is repaid on time.
“It would be absolutely wrong for a bank dependent on taxpayer funding to tie up large amounts of capital in international loans of this kind,” he wrote.
“I trust we can rely on Lord Mandelson to put his weight behind this demand so that small businesses in Britain can benefit.”
The letter was also sent to Mr Mandelson, in his role as business secretary.
