David Cameron caught in a cash-for-access row

David Cameron faced calls last night (Sunday) for an independent inquiry after a Tory fund-raiser boasted that wealthy party donors could buy a personal audience with the Prime Minister and influence over Government policy.

Mr Cameron found himself caught in a cash-for-access row after Peter Cruddas, the Conservative Party's co-treasurer, was recorded in secret claiming that donors were treated to exclusive dinners at Downing Street and Chequers, the Prime Minister's official country residence.

Mr Cruddas, a City multimillionaire, told undercover reporters posing as foreign donors that "things will open up" for anybody willing to donate pounds 250,000 a year to the party.

He suggested that they might be able to influence Government decisions by having their views on issues referred to a "policy committee".

The Prime Minister condemned Mr Cruddas's comments as "completely unacceptable" and announced an internal party investigation, but was last night facing growing pressure to set up an independent inquiry to examine whether he breached Whitehall rules by entertaining donors, and whether policy had been influenced improperly.

The Metropolitan Police also received a complaint about the issue. Officers must now decide whether to undertake a criminal inquiry.

Mr Cruddas resigned from his post on Saturday night after the claims were made public. He described his boasts as "bluster".

Mr Cameron, who two years ago warned that lobbying would be the next great parliamentary scandal, tried to draw a line under the affair yesterday.

"This is not the way that we raise money in the Conservative Party, it shouldn't have happened," he said. "It's quite right that Peter Cruddas has resigned. I will make sure there is a proper party inquiry to make sure this can't happen again."

Ed Miliband, the Labour leader, and anti-sleaze campaigners said an internal inquiry was not enough.

Labour suggested the Conservatives tried to circumvent disclosure rules under which meetings with business people are published. There were also questions about whether rules about seeking donations from foreigners were breached.

The party demanded that Mr Cameron disclose which Tory donors had visited Downing Street or Chequers since May 2010 and what policy representations they had made.

Mr Miliband said: "This has got to be an independent investigation into what happened, what influence was sought over policy making, whether any influence was had or access was gained to the Prime Minister and the Chancellor. The independent investigation should look at what happened at the Downing Street policy unit, because apparently offers were made or cash was paid so that the people donating money would be able to have access to it."

The campaign group Unlock Democracy said Mr Cameron could have breached the ministerial code if any public money was involved to help the Tories raise money either in Downing Street or at Chequers.

Peter Facey, a spokesman, said: "If these allegations were proven to be true you might as well put a 'for hire' sign outside No?10.

"This looks like a clear breach of the code which now needs to be independently investigated as a matter of urgency. We need to know which donors were hosted in the Prime Minister's flat and whether public money was used. Even if it

does not breach the code on a technical level, it put a coach and horses through its spirit."

Mr Cruddas was recorded suggesting to reporters from The Sunday Times that "premier league" donors - those giving pounds 250,000 a year - could lobby Mr Cameron directly. Any ideas could be "fed in" to Downing Street, he suggested. He said there was no point in "scratching around" with donations of pounds 10,000. Donors and their clients were also able to meet ministers such as George Osborne, the Chancellor, and William Hague, the Foreign Secretary, he said.

Mr Cruddas said that "some of our biggest donors have been for dinner in No?10 Downing Street, in the Prime Minister's private apartment, with Samantha".

The ministerial code states that government property cannot be used for party fund-raising. Official residences can be used, as long as no public money is involved.

Senior party sources confirmed that Mr Cameron had held talks in his flat with two large donors in the past year, although the source said it was "exceptionally unusual".

A senior aide to the Prime Minister denied the party was "selling" access to Mr Cameron's flat, and insisted no public money was used at the "handful" of private dinners since the Coalition took office.

Last night Mark Adams, the lobbyist who tipped off reporters, made a complaint to police. He is asking officers to investigate whether the Political Parties, Elections and Referendums Act was breached. Scotland Yard did not comment by the time of publication.