Angela Rayner has insisted she “promised nothing” and gave “nothing in return” to the wealthy Labour donor who paid for her five-day stay in Manhattan apartment and handed her thousands of pounds of free clothing.
Speaking to the BBC on the first day of Labour conference, the Deputy Prime Minister said all parties had accepted gifts “for years” and that “all MPs do it”.
But the SNP accused the party of "living a life of luxury" while robbing pensioners of their winter fuel payment.
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In her interview, Ms Rayner said she understood why people were “frustrated” and “angry” about senior figures in the party taking thousands of pounds in gifts.
The row over freebies — including tickets for football matches and pop concerts — threatens to overshadow the gathering of the party faithful in Liverpool.
Many of the gifts come from media mogul Lord Waheed Alli.
He has handed free clothing to seven sitting cabinet ministers including Ms Rayner and Sir Keir Starmer.
The Prime Minster initially failed to properly declare the clothing, worth £16,200 to him and £5,000 to his wife.
In an attempt to draw a line under the row, the party promised on Friday that Sir Keir, Ms Rayner and Chancellor Rachel Reeves would no longer accept any free clothes.
The Sunday Times reported that Ms Rayner registered a five-day stay at Lord Alli’s apartment in New York for the new year but did not include the fact that her friend Sam Tarry stayed with her.
Asked why she stayed in the flat for free, she told the BBC: “As friends do, a friend allowed me to stay . . . people do stay at other people’s apartments.”
Ms Rayner said: “MPs have been accepting donations for years. But it is important to be transparent about it.
“I get that people are frustrated in particular the circumstances that we are in but donations for gifts and hospitality and monterey donations have been a feature of our politics for a very long time.
“People can look it up and can see what people have had donations for and the transparency is really important.”
She then went on to add: “We have a system at the moment that says, if you get donations that have to be declared, and the rules have to apply to everybody.”
Meanwhile, Education Secretary Bridget Phillipson defended using money from Lord Alli to fund a reception to mark her 40th birthday. She it was “in a work context” with guests including journalists and trade unionists and “education people”.
SNP MP Kirsty Blackman said: "People are understandably angry that Sir Keir Starmer and Labour Party ministers have been throwing birthday parties and lining their pockets with around £800,000 of luxury freebies and donations, while ordinary families are facing the pain of damaging Labour government austerity cuts.
"While the Labour Party robs pensioners of their Winter Fuel Payments, and pushes thousands of Scottish children into poverty with their two child benefit cap and bedroom tax, Sir Keir and his Cabinet ministers are living a life of luxury - kitted out in free designer clothes, enjoying high-end holidays, Taylor Swift gigs, and thousands of pounds of hospitality.
"It makes them look completely out of touch, and shows it's one rule for them and another for the rest of us - austerity for thee but not for me."
Tory frontbencher Paul Holmes said: “As Labour’s Party Conference begins after fewer than 12 weeks in power, Keir Starmer’s Government has been engulfed in scandal and infighting, showing that the only change they offer is a change of clothes.”
In her speech, Ms Rayner told delegates the UK Government’s Employment Rights Bill will be introduced to Parliament next month. She described it as “historic legislation” that will “make work more secure” and “ensure rights are enforced and trade unions strengthened”.
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