DUNCAN Bannatyne, the star of BBC TV's Dragon's Den - the programme that invites multi-millionaires to invest in good ideas - said last night he would never again give money to the Labour Party.

The North-East millionaire is refusing to donate more money to the party in a protest against the so-called feud between Tony Blair and Gordon Brown.

He said his decision was sparked further by his anger at the Government's response to help the victims of the tsunami disaster, as well as the ongoing problems in Iraq.

The entrepreneur has previously given Labour £50,000, but said he was almost certain he would not be giving any more in the future.

Commenting on the speculation of a rift between the Prime Minister and the Chancellor, Mr Bannatyne said: "Disunity in the Cabinet has a corrosive effect on the country.

"Gordon Brown is a great Chancellor who has delivered a stable economy, but business wants that to continue and not to be blown off course by petty squabbles based on personal ambition."

Mr Bannatyne made his fortune through care homes and health clubs. But it was his plans to build a casino in Newcastle that put him in the spotlight last year.

It emerged that he had given the donation to Labour just as he decided to branch out into casinos. The 52-year-old has always insisted that the donation had nothing to do with Labour's plans for super-casinos.

Reflecting on his decision to stop the donations, he said people with a world view should also be concerned about the ongoing violence in Iraq.

"Innocent people are still being killed in large numbers and the instability that exists post-invasion needs to be tackled urgently," he said.

"Without proper security, the Iraqi people might think they were better off under Saddam and I see no evidence of new ideas to tackle the problem."

He added that the Government's response to the Asian tsunami appeared "piecemeal and poor".

"The people there need practical help, not just pledges of money. The US has forces helping on the ground, we can do more," he said.

The Northern Echo contacted the Labour North group, but a spokes-man said the party did not wish to comment on the matter.