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The Cash-for-Honours scandal (also known as Cash for Peerages, Loans for Lordships, Loans for Honours or Loans for Peerages) was a political scandal in the United Kingdom in 2006 and 2007 concerning the connection between political donations and the award of life peerages.
The Honours (Prevention of Abuses) Act 1925 is an Act of the Parliament of the United Kingdom, that makes the sale of peerages or any other honours illegal. The act was passed by the Parliament in the wake of David Lloyd George's 1922 cash-for-honours scandal.
A series of newspaper articles alleged a donor to The Prince’s Foundation was offered help securing a knighthood.
In March 2006, the Commission objected to several men proposed for working peerages by Prime Minister Tony Blair, who had loaned large amounts of money to Blair's Labour Party. This led to the "Cash-for-Honours scandal". In 2020, the Commission objected to the nomination of Peter Cruddas for a peerage by Prime Minister Boris Johnson.
On 15 March 2006, during the Cash for Peerages scandal, Dromey said he was unaware – despite being the Labour Party treasurer – of £3.5 million loaned to the Labour Party in 2005 by three persons who were subsequently nominated for life peerages (Chai Patel, Sir David Garrard, and Barry Townsley).
In April 2006, it was announced that James had been nominated for a life peerage by the Conservative Party [3] The news had already been revealed in a list leaked to The Times [4] that eventually led to the Cash for Peerages scandal. James himself had given a relatively small amount to the Conservatives.
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Arthur John Maundy Gregory, [1] [2] [3] who later used the name Arthur John Peter Michael Maundy Gregory [4] [5] (1 July 1877 – 28 September 1941) was a British theatre producer and political fixer who is best remembered for selling honours for Prime Minister David Lloyd George. [6]