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Jack Straw MP, Labour's Justice Secretary, said:

"Lord Ashcroft was initially turned down for a peerage. He was only granted his peerage on the basis that he would return to live in the UK, become fully resident, and that he would pay tax in the UK on his wider income. 

"Today Lord Ashcroft has been forced to admit that he has not complied with this promise and that for the last ten years the Conservatives have been concealing the truth.

"Instead of paying tax in the UK on all his earned income, he has been channelling millions into the Conservative Party to help them buy this election. This is precisely what you'd expect from the old Tory party of the 80s and 90s. It just goes to show that rather than having really changed his party, David Cameron has kept it as it was.

"Today David Cameron claims he proposed to change the law to force peers to pay full tax. He did not. The Tories' initial amendment left open an 'Ashcroft loophole', which would have allowed non-dom peers to avoid paying tax on their foreign income. Instead, it was this Labour Government which took action to ensure that in future every peer and MP is treated as a fully resident UK taxpayer."