A BUSINESSMAN who let Ed Miliband ride in his Rolls-Royce during a no-expense-spared visit to his football club has given the party a £100,000 donation.
Assem Allam, who was trying to persuade Labour-controlled Hull council to support a property development, made the offer in a meeting with the Labour leader in February.
Egyptian-born Allam owns former Premier League club Hull City FC. He is known as "The Pharaoh".
The party refused to confirm the donation but a letter from Iain McNicol, general secretary of the Labour party, to the owner appears to confirm the gift.
The text of the letter, leaked to the Mail on Sunday, expressed the party’s “sincere gratitude” for the tycoon’s “incredible contribution” to party funds.
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The disclosures will spark a conflict of interest row for Miliband and the party, given Allam’s previous grievance with the council.
The trip to Hull City FC’s KC stadium came on the day that the Labour leader pulled out a health rally, claiming he was too ill.
Allam is engaged in a long-running battle with Hull council over two property schemes including one at the stadium.
The plans reportedly include buying the stadium and nearby land to develop a £114m complex including a swimming pool and an ice rink.
A spokesman for Allam said: “[‘He] has never discussed the issues of either the KC Stadium or Craven Park with Ed Miliband or any of the Hull MPs. He is too experienced to make a donation and then start asking such questions.
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“On the subject of the KC Stadium, Assem accepts he will not get the freehold and made a statement to the media in September last year that the matter was closed.
Andrew Percy, Conservative MP for nearby Brigg and Goole, said: “It would appear that £100,000 is a wonderful cure-all.
“Given that Mr Allam is involved in high-profile discussions with the council, it is vital that any future negotiations are fully transparent and there is absolutely no hint of any influence being brought to bear by Labour nationally.”