Police investigating donations to the Labour Party confirmed to the JC this week that they have ruled out taking further action on allegations against one unnamed donor.

In November last year, police were called to look into funds received by the party.

The police have confirmed that the investigation is continuing. They would not reveal the name of the individual against whom no further action would be taken. Nor would they reveal how many people had been spoken to, although they reported that no one had so far been arrested in connection with the inquiry.

One of those who donated to the party was property developer David Abrahams, who gave £670,000 using four intermediaries, including business associates and colleagues such as his secretary and builder.

Around £5,000 of this was donated to Harriet Harman’s deputy Labour leadership campaign.

Prime Minister Gordon Brown said last year that the donations were “not lawfully declared” and were “completely unacceptable.”

He pledged to repay the money and ordered an internal investigation into the donation.

The Labour inquiry is being headed by Lord Whitty.

A spokesman for the Labour Party confirmed that this internal investigation was continuing.

“There is no timescale but it is ongoing,” he added.

A Metropolitan Police spokesman this week said: “On November 30 2007, the MPS [Metropolitan Police Service] received a referral from the Electoral Commission relating to a number of donations received by the Labour Party.

“The referral identified a number of potential breaches of the Political Parties, Elections and Referendums Act 2000.

“One such matter related to a single donation received by the deputy leadership campaign from an individual.

“The MPS has investigated this matter and, after consultation with the CPS, decided that no further action will be taken in relation to the allegation against that individual.”

A spokesman for David Abrahams said he would not be commenting on the matter