David Cameron was last night accused by Labour of "turning a blind eye" to the fact that a key Tory benefactor continues not to honour a pledge to move to the UK for tax purposes.
Monaco-based Lord Laidlaw of Rothiemay, 64, who has given the Conservative Party more than £2m and loaned it £3.5m, was yesterday featured in the pages of the House of Lords Appointments Commission annual report.
In June 2004, the Scots businessman and philanthropist - who made his £730m fortune from a global conference business - was awarded a peerage after promising to take up UK residency.
However, in an unprecedented move, the commission highlighted Lord Laidlaw's circumstances, pointing out it had now raised the matter with Tony Blair because the peer had not fulfilled his pledge.
It said it would not have approved Lord Laidlaw's elevation if it had foreseen his continued reluctance to subject himself to UK taxation and now refuses to consider nominations for people without British tax residency.
In April, Lord Laidlaw let it be known he was in talks with HM Customs and Revenue and had taken a leave of absence from the Lords while he sorted out his status.
Recently, there have been reports he has put his Hampshire mansion on the market for £14m. He also has a house in London's Eaton Square.
Mr Cameron has urged Lord Laidlaw to honour his undertakings and the peer insists he has "every intention" of doing so.
Last night, however, Hazel Blears, the Labour chairwoman, said: "Why hasn't David Cameron taken action on this yet? He said weeks ago Lord Laidlaw should honour his undertakings and yet has not taken any disciplinary action and seems to be turning a blind eye. Instead of leadership from David Cameron, we once again have vacillation and weakness."
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