Diane Abbott row: Tory minister says they'd take more cash from donor Frank Hester

A Tory minister has said his party would take another £10m from a donor who allegedly made comments about Diane Abbott that No 10 called "racist".

Donor Frank Hester apologised after reportedly saying the ex-Labour MP made him want to "hate all black women".

Andy Street, a Tory mayor, told the BBC that he would return the cash.

Post Office minister Kevin Hollinrake however said that his party would accept more because Mr Hester's apology demonstrated he was not racist.

The disagreement within the party comes as Downing Street faces calls to return the money.

Mr Street, the Conservative mayor of the West Midlands, told BBC Radio 4's Today programme: "I would think about the company I kept and I would give that money back.

"I have to give you my view, rather than what the party should do, but I've thought about how I would handle that situation."

Mr Hollinrake however told BBC Breakfast that his party would accept another £10m from him, "on the basis that we don't believe Mr Hester's a racist."

"If Mr Hester was a racist, if he refused to apologise for what he'd said, that would be different. He's apologised," he said. "I don't believe he's a racist."

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The disagreements over returning Mr Hester's money comes after a day of internal party turbulence over Mr Hester's comments, first reported by the Guardian on Monday.

In 2019 Mr Hester allegedly said: "It's like trying not to be racist but you see Diane Abbott on the TV, and you're just like I hate, you just want to hate all black women because she's there, and I don't hate all black women at all, but I think she should be shot."

In further remarks reported by the newspaper from the same meeting, the Phoenix Partnership boss is claimed to have said that there was "no room for the Indians, then?" and suggested staff climb on a train roof.

In a social media post, published earlier, Mr Hester said he "abhors racism", which he described as a "poison that has no place in public life".

He added: "We should have the confidence to discuss our differences openly and even playfully without seeking to cause offence."

The BBC has not heard a recording, or been able to independently verify the alleged remarks.

Ms Abbott, who is currently suspended from sitting as a Labour MP, said the comments were "frightening".

Downing Street initially declined to describe his comments as racist.

Frank Hester apologised over the alleged comments

But later Mr Sunak's spokesperson said: "The comments allegedly made by Frank Hester were racist and wrong.

"He has now rightly apologised for the offence caused and where remorse is shown it should be accepted.

"The prime minister is clear there is no place for racism in public life, and as the first British-Asian prime minister leading one of the most ethnically diverse Cabinets in our history, the UK is living proof of that fact."

Former Labour deputy leader Harriet Harman described the donated money as "tainted".

"He should not be fighting an election on money which has come from this person," the MP said speaking on BBC's The World Tonight on Tuesday.

Lord Barwell, a former minister, told BBC Radio 4 Today programme on Wednesday that his party should not accept further donations from Mr Hester but "they may well have spent some of the money" that had already been given.

The ex-Downing Street chief of staff also criticised No 10 for the "hugely damaging" decision to send out ministers who were unable to call the comments racist before the government line changed.

Ms Abbot has reported Mr Hester to the Parliamentary Liaison and Investigations Team, a Met Police unit set up following the murder of MP Jo Cox in 2016.

It investigates alleged crimes against MPs in their capacity as elected representatives, and liaises with the Parliamentary Security Department.

Mr Hester is one of the Conservative's biggest donors, having given them £5m last year and a further £5m through his company.

In November, he gifted Mr Sunak the use of a helicopter for a political visit, valued at £15,000, according to parliamentary records.

In a statement released on Monday, Mr Hester's company said he "accepts that he was rude about Diane Abbott in a private meeting several years ago but his criticism had nothing to do with her gender nor colour of skin".

Frank Hester allegedly said Diane Abbott made him "want to hate all black women"

It added: "The Guardian is right when it quotes Frank saying he abhors racism, not least because he experienced it as the child of Irish immigrants in the 1970s.

"He rang Diane Abbott twice today to try to apologise directly for the hurt he has caused her, and is deeply sorry for his remarks.

"He wishes to make it clear that he regards racism as a poison which has no place in public life."

Ms Abbott said as a "single woman" she was already "vulnerable" when walking or taking a bus in her Hackney constituency.

"For all of my career as an MP I have thought it important, not to live in a bubble, but to mix and mingle with ordinary people," she added.

"The fact that two MPs have been murdered in recent years makes talk like this all the more alarming."

Ms Abbott had served as a Labour MP since 1987, but was suspended from sitting in the parliamentary party in 2023 after she said Irish, Jewish and Traveller people were not subject to racism "all their lives".

She withdrew her remarks and apologised "for any anguish caused".