(John Prescott reveals the size of Labour’s money bags)

John Prescott, the recently ennobled Lord of Hull, has issued a stark warning that the Labour Party is “on the verge of bankruptcy”, with “more than £20 million in debt”, “a long-term decline in membership and a funding crisis”. Writing on the Guardian website in preparation for his candidature for the post of party treasurer, Prezza said that greater focus must be applied to the party’s core areas of financial support - trade unions, small donations and high-value donors like Dr Chai Patel and Gordon Crawford. The bruiser also implicated former PMs Tony and Gordon in the financial muddle, implicitly blaming the cash-for-peerages scandal and the 2007 “election that never was” as costing the party dearly, leaving only £10 million for the election campaign

His words come as the Tories faced embarrassment over their own co-treasurer, as millionaire donor David Rowland announced he did not want the job that he had previously accepted.