Labour says its analysis shows that 27 of the 59 wealthiest fund managers have donated more than £19m to Tory coffers

Nearly half of Britain’s wealthiest hedge fund managers are helping to bankroll the Conservative party, according to a Labour analysis of Tory donors that shows the party’s dependence on the City of London. Lucy Powell, vice-chair of Labour’s general election campaign, accused David Cameron of debasing politics by refusing to answer questions about the Tories’ reliance on hedge fund managers.

The figures, which show that 27 of the 59 wealthiest hedge fund managers in the Sunday Times Rich List have personally donated – or seen their fund donate – more than £19m to the Tories, came as the archbishop of Canterbury intervened in the debate about responsible business and the use of tax havens. In a speech on “the good economy” at a conference organised by the all-party parliamentary group on inclusive growth, Justin Welby said companies should pay tax in the countries where they have generated their wealth.

The speech provided some comfort for Ed Miliband, who has been under fire from the Tories after Labour criticised the billionaire boss of high street chemist Boots over his claim that the party would have a catastrophic impact on business. Labour pointed out that Stefano Pessina, who has a fortune estimated at £7.5bn, lives in Monte Carlo.

Labour went on the offensive last night by releasing the analysis of Tory donors who feature in the section of the Sunday Times list which focuses on hedge fund managers. This found that 27 of the 59 managers are Tory donors or work for funds that have made donations.

The most generous donors are Sir Michael Hintze, the head of the CQS fund, who is in fourth place in the section and has donated £3.2m to the Tories, and Lord Fink, the head of the Mayfair-based ISAM hedge fund, who is joint 42nd on the list. He has given £3.1m to the Tories.

A similar analysis in the Financial Times found that the number of City backers for the Tories has doubled during this parliament compared with the period 2005 to 2010.

The FT found that 35% of all party funding comes from eight of the top 20 donors. The eight are all from a City background and have donated £12.2m so far this parliament to the Conservatives.

In the previous parliament there were four City backers in the Tories top 20 donors list who gave £8.3m.

Miliband linked the donations to the Tories to the introduction in 2013 of a stamp duty exemption on stock market transactions, which he said had lifted £147m worth of taxes from the hedge funds.

The Labour leader said at prime minister’s questions: “This is the difference: this is a PM who won’t tackle tax avoidance for the simple reason that too many of his friends would get caught in the net. They’re the party of Mayfair hedge funds and Monaco tax avoiders.”

Miliband focused all his questions on the link between the tax breaks for hedge funds and the extent of the donations to the Conservative party by fund managers. He said: “Everyone pays stamp duty on stock market transactions except hedge funds, who are allowed to avoid it, costing hundreds of millions of pounds. You have been funded to the tune of £47m by the hedge funds.”

Labour claims the hedge fund loophole has cost the country £100m a year over the past five years, and others have put the figure higher. Miliband asked: “Everyone knows that’s why you are refusing to act, but what is your explanation? Why are you refusing to act on this?”

Cameron repeatedly refused to answer the Labour leader’s questions, saying three times: “If you have a good submission for the budget, talk to the chancellor about it.”

Powell said of the Labour analysis of the Tory donors in the Sunday Times Rich List: “David Cameron is debasing political debate by refusing to answer questions over his hedge fund backers. This research shows just how reliant the Tories’ campaign is on those in the hedge fund industry.

“While Labour would clamp down on tax avoidance by hedge funds in order to deliver investment to the NHS frontline, the Tories have given hedge funds a tax cut worth £145m. The Tories are standing up for those at the top rather than hardworking families, and David Cameron doesn’t want to admit it.”​

A Tory source said: “Labour’s main donors – the unions – pick the candidates, choose the leader and dictate the policy. Ours do not. This is all a desperate attempt to deflect from the fact no major business has come out to support them as their so-called economic strategy unravels.”

Labour also hinted for the first time that it believes Smythson, the luxury stationer for which Samantha Cameron acts as an adviser, moved its headquarters to Luxembourg to lessen its tax burden. Miliband made no reference to David Cameron’s wife or to the company during prime minister’s questions, but the Labour MP Tom Blenkinsop asked Cameron: “Does he know of anyone who owns or works for a UK-registered company that uses a Luxembourg-based company in order to avoid paying their fair share of tax in the UK?” Cameron replied that he wanted to see more companies headquartered in the UK.