Keir Starmer was embroiled in a sleaze storm last night after it emerged that his biggest personal donor was given a rare Downing Street security pass.

The Government was accused of cronyism that is ‘rotting politics to its core’ following a string of controversial appointments since coming to power.

Labour peer Lord Alli, who paid for thousands of pounds of suits and spectacles for the Prime Minister among more than £500,000 in donations to Labour, was allowed unrestricted access to the heart of Government after the election.

The highly unusual move meant the millionaire TV mogul, who was hired by Sir Keir as the party’s chief fundraiser, could attend political meetings in No 10 and is said to have helped organise a Downing Street garden party to thank others who bankrolled the campaign.

As the ‘passes for glasses’ row threatens to derail Sir Keir’s speech on the state of the public finances tomorrow, ministers and government sources rushed to insist that Lord Alli had been given only a temporary pass and gave it back at the end of last month.

But the PM was still facing questions about why he ever agreed to the arrangement, particularly given his repeated vows to clean up politics. Conservative leadership contender Tom Tugendhat said: ‘The Prime Minister and the Chancellor spent years in opposition preaching about standards in public life. Now in Government, the moment the votes were counted, their story has changed and we’re seeing the same old Labour.’

He called on Sir Keir to reveal who approved the decision to give Lord Alli a pass, the dates he used it to enter Downing Street and what meetings he attended.

Mr Tugendhat added: ‘It is time to reset our relationship with the British people and rebuild the trust lost to this type of sleaze and dishonesty, which is rotting our politics to its core. That demands leadership, something Sir Keir seems to lack.’

It comes after a string of Labour donors and staffers were handed senior civil service jobs, with one already forced to abandon his new role as the Treasury’s director of investment in the wake of cronyism allegations.

Lord Alli has made donations to other Cabinet ministers as well as letting Labour deputy leader Angela Rayner stay in his New York apartment for a New Year holiday. Shadow paymaster general John Glen said: ‘Starmer’s sleaze is engulfing this new Government and it’s time Labour came clean on all the people they’ve parachuted into top civil service jobs and the donors they’ve returned favours to so the independence and integrity of the civil service is maintained.’

Sir Keir’s speech on the economy tomorrow looks likely to be overshadowed by the row. The PM is also under pressure to admit if any other party donors had been given the security passes usually tightly restricted to key staff, as well as family members of the PM and Chancellor.

Insiders have questioned how Lord Alli, whom No 10 says has no official role in the Government, got a pass so quickly after the change of administration, given the need for stringent checks.

A Whitehall source told The Sunday Times, which broke the story, that the decision to grant Lord Alli a pass was a mystery.

The newspaper reported that he had organised an evening reception in the No 10 garden to thank those who had worked on the election campaign.

However sources told the Mail that the event was not hosted by Lord Alli. ‘This was a party organised by the political team, with a very mixed audience of volunteers and people who contributed to the campaign,’ one said.

One attendee of the garden party, Jill Whitehouse, wrote on X: ‘I was at that garden party. It wasn’t just donors being thanked – I met constituents who’d helped, health workers. All sorts of people. Everyone’s contribution valued.’

Initially there was confusion over whether Lord Alli still had the pass, after the Sunday Times was told he did but a minister said he had given it back.

Chancellor of the Duchy of Lancaster Pat McFadden told Times Radio: ‘He’s not doing a job in Downing Street. He’s not involved in any government or policy decisions. I don’t believe there’s anything being done here that’s in conflict with the rules.’