Harrison defends company’s dealings

A national newspaper reported that the money was paid into two companies and a pension fund in which either Mrs Harrison or her husband, James, had a controlling interest.

Last week Mrs Harrison announced she was standing down as chairman of A4e – the firm which she built up and which made millions from Government contracts for getting the jobless back into work.

She had already quit as an unpaid advisor to No 10 following the disclosure A4e was at the centre of a police fraud investigation.

In a statement, Mr and Mrs Harrison said both their personal finances and those of the companies they owned were “legal, above board, open and transparent”.

According to The Observer, the couple were paid £316,000 for allowing A4e to use their country home – Thornbridge Hall in Derbyshire – for board meetings and other events.

They were said to have been paid another £1.4m for leasing out two other properties to Mrs Harrison’s own firm, including its Sheffield headquarters.

In a statement the couple said: “We have never misused or re-directed funds through our companies.

“Any transactions between our companies is 100 per cent legitimate and has a full audit trail.

“We own personal properties personally, not through companies. We own business properties in businesses, not personally. The two are not to be confused.”