A former Conservative supporter has donated £1 million to Ukip after William Hague called him a "nobody".

Millionaire businessman Arron Banks had originally decided to donate £100,000 to Nigel Farage's party but following Mr Hague's intervention he has increased it to a million.

Mr Banks, who runs GoSkippy insurance, said: "I woke up this morning intending to donate £100,000 to Ukip and I understand Mr Hague called me a nobody.

"So, in light of that and in view that I am a strong advocate of leaving the European Union, I have decided today to donate £1m to the party."

Mr Banks was ­accompanied by Mr Farage when he made the announcement at a press conference at a country hotel near Bristol.

Commons Leader Mr Hague dismissed Mr Banks as "someone we haven't heard of", whose change of allegiance would have little impact.

Mr Banks, who owns the Old Down Manor hotel where the announcement was made, told reporters: "I was hoping that Mr Hague will now know who I am."

Mr Farage said: "It has been a remarkable week. Ever since the Mark Reckless resignation we have had the Conservative Party back to form, really.

"We first saw it with Michael Howard calling us cranks etc and gadflies, we moved on to David Cameron calling us fruitcakes, loonies and closet racists, and on it goes.

"It was amusing after Mark Reckless joined us to see Conservative Party chairman Grant Shapps calling us dishonest, which was rather funny, and we have seen intense pressure on Eurosceptics, members of their own party at their conference, abusing and threatening them that their future lives would be destroyed if they joined Ukip."