MP Wes Streeting has denied there is a conflict of interest in accepting a £3,000 donation from a company linked to an investigation he is involved in.

The Labour Ilford North MP was given the cash two years ago from Loudwater Ltd which is associated with Lord Dennis Stevenson, who resigned from HBOS in 2008 as the credit crunch hit.

HBOS was a bank created in 2001 when Halifax plc and Bank of Scotland merged.

It was taken over by Lloyds TSB in 2009.

HBOS owned 49 per cent of the share capital of Loudwater, of which Lord Stevenson was a non-executive director from 2007 until 2012.

Wes Streeting is now on the Treasury Select Committee, which is investigating whether the former HBOS executives should face action for the bank's failures.

He said the donation was not from by Lord Stevenson but the owner of Loudwater, Richard Wyatt.

He said: “The donation from Loudwater Investment Partners to Ilford North Labour Party was made back in December 2013 before my election as a Member of Parliament, thanks to the owner of the company who was an Ilford boy and wanted to contribute to the election campaign.

“It was properly registered with the Electoral Commission, the Parliamentary Commissioner for Standards and the Treasury Select Committee in the usual way.

“There is no conflict of interest and any suggestion that there is a link between this donation and HBOS is wholly untrue.”

Wes Streeting won the Ilford North seat from the Conservatives with just 589 votes in it back in May.

Conservative Lee Scott was hoping to win a third term as MP for the constituency but rival Mr Streeting gained a 6.3 per cent swing from blue to red.