BAT chief funding Clarke campaign

Kenneth Clarke faced fresh criticism over his links to the tobacco industry last night after the disclosure that his Tory leadership challenge has been directly funded by the chairman of British American Tobacco.

The former chancellor, who is the deputy chairman of BAT, has received cash from Sir Patrick Sheehy, according to the Electoral Commission's latest register donors. Mr Clarke is also likely to come under attack for receiving £25,000 from Nat Puri, a businessman who funded Labour in the 1997 general election. Mr Puri, who is Mr Clarke's biggest donor to his £71,000 campaign, gave an undertaking in court in 1995 never again to act as a pension fund trustee after he was found using such a fund to finance his business.

Mr Clarke accepted £7,500 from Tutton and Saunders, a firm of brokers that forms part of a company, Savoy Asset Management, which he chairs. The MP's camp said he had also received donations from one of Margaret Thatcher's allies and a Eurosceptic millionaire.

Another donation of £10,000 came from Peter Orton, chief executive of HIT Entertainment, the children's TV company behind Bob the Builder.

But it is Mr Clarke's link to the tobacco industry, courtesy of a £1,500 donation from Sir Patrick, that will again prompt criticism from the health lobby. The disclosure came as a focus group survey by The Independent of Tory party members found that they were worried by Mr Clarke's links to the industry.