PM orders inquiry over ‘yachtgate’

The Prime Minister yesterday waded into the controversy over allegations that the shadow chancellor George Osborne discussed a donation from a Russian tycoon to the Tory party.

Gordon Brown ordered an investigation into claims that Osborne held talks with Oleg Deripaska while on holiday in Corfu. The PM told the Commons that the allegation was "a very serious matter and I hope it is investigated by the authorities".

However Downing Street was unable to confirm which authorities the PM was referring to, the Times reported. "Whichever authorities are appropriate," a spokeman said.

Yesterday was an excruciating one for George Osborne, as he fought for his political reputation after the accusations by his old friend, financier Nathaniel Rothschild, whose hospitality he had enjoyed in Corfu. The shadow chancellor endured 30 minutes of jeering by Labour MPs during Prime Minister's Question Time. Senior Tories also chastened the 37-year-old Osborne with former Tory chairman Lord Tebbit bluntly telling him that "those who sleep with dogs will get fleas".