Peter Cruddas, the co-treasurer of the Conservative Party, has resigned after being caught in a sting by the Sunday Times allegedly attempting to sell access to the Prime Minister for a party donation of £250,000.
Posing as two overseas financiers offering to buy up distressed government assets, reporters from the Sunday Times this month gained access to Mr Cruddas through a lobbyist.
The reporters were told if they made a six figure donation they would be entering "premier league" of donors who would be able to obtain personal access to Mr Cameron and the Chancellor George Osborne.
This is Conservative Party co-treasurer Peter Cruddas' resignation statement in full:
Speaking at a Sports Relief run in Buckinghamshire, David Cameron said that there would be an inquiry to make sure party staff would not make cash-for-access claims again.
The Conservative Party has strenuously denied the allegations. They released a statement to ITV News:
The scandal has prompted reaction from both sides of the political divide throughout the day.
Labour leader Ed Miliband has called the revelations in The Sunday Times that the Tory party was allegedly selling access to the Prime Minister "very disturbing."
He has called for an independent investigation.
Danny Alexander, the Chief Secretary to the Treasury says the revelations make the case even stronger for reforming the rules..
Senior Labour MP David Miliband says the Conservative party is "going to have to publish the list of policies that have been sent from these dinners to the Number 10 Cameron committee that has been advertised."
Speaking on the BBC's Andrew Marr Show, he called called the cash-for-access suggestions "grotesque."
Tory Sport Minister Hugh Robertson said today's story proved that access could not be bought.
"As has clearly been demonstrated, this is unacceptable and the person responsible has resigned," he told Sky News.
He said "the important thing" was that Mr Cruddas had resigned "as soon as he was exposed".
Labour MP Tom Watson told ITV News, "we need to know: who are these donors who had secret dinners with David Cameron? What policies were considered by the 'Downing Street machinery'?"
Shadow minister Michael Dugher has written to the Prime Minister demanding that he disclose which Tory donors had visited Downing Street, Chequers or Dorneywood since May 2010 and what policy representations they had made:
The Shadow Chancellor Ed Balls said: "It looks to me as though David Cameron and George Osborne have been thinking they can be above the law, beyond reproach and just listening only to those who can afford to pay."
Sir Christopher Kelly, of the Committee on Standards in Public Life, says he hopes that all parties will now embrace reform of the funding system.
ITV News' political correspondent Libby Wiener spoke to the Conservative Party's deputy chairman Michael Fallon about Peter Cruddas, the party's now former co-treasurer.
Mr Cruddas today resigned after he was caught allegedly trying to sell access to David Cameron.