Tycoon's '£2m peerage' row

Published on Monday 8 August 2005 00:15

LAKSHMI Mittal, the Indian steel magnate who has become Britain's richest man, yesterday played down suggestions that he is to be ennobled in return for a £2million donation to Labour.

A spokesman for the self-made billionaire dismissed suggestions that he has been approached for a peerage and may be amongst the last benefactors to be thanked through the honours system.

But Downing Street would not deny reports that Mr Mittal, who recharged Labour's post-election bank balance, is on the shortlist to be honoured in the New Year.

Reports in the weekend press suggested Mr Mittal was being considered for elevation to the House of Lords along with Gulam Noon, an entrepreneur who specialises in ready-made meals.

The process normally involves approaches to those being elevated, to see if they would be amenable.

But a spokeswoman for Mr Mittal insisted he had not been contacted. "He's not been approached and has heard nothing about this. If people are asking whether this is why he made the donation, the answer is absolutely not," she said.

"Does he want a peerage? I don't think he has ever thought about it, to be honest. If he's ever offered, it will be an issue for him at the time."

Mr Mittal, who has become a British national, has been a regular Labour donor since 1997 - causing controversy in 2002 when Tony Blair intervened while he was in talks to buy Romania's state steel firm. The Prime Minister wrote to his Romanian counterpart saying he was pleased to see a deal cut with "a British company".