A CANDIDATE to become a Labour MP has rejected a £1,000 campaign donation from former prime minister Tony Blair.

Lesley Brennan, who is standing in Dundee East in May's General Election, said she acted on her "instinct" and in discussion with her team.

But there was confusion last night as Labour said it was still owed the money and intended to spend it fighting the election.

During his time as Labour leader Mr Blair took his party to three general election victories.

But his decision to take the UK into war in Iraq has left him a controversial figure.

In total Mr Blair has given more than £100,000 to help the party in key battleground seats.

He made a donation of £1,000 to the local campaigns in 106 target constituencies, including five in Scotland, saying they were "where the election will be won for Labour".

But Ms Brennan said she would not be taking the money.

She wrote on the social networking site Twitter: "Received donation from Tony Blair. Instinct was to not accept. Discussed with team. Dundee East is not accepting the £1,000."

However, other Labour prospective parliamentary candidates (PPCs) said on Twitter they would gladly take the money from Dundee East.

Steve Race said: "If any Labour PPC doesn't want a donation offered from the most successful Labour leader in history, I'll happily have it for East Devon!"

Kevin McKeever said: "To any Labour PPC not wanting donation from Tony Blair: we'll happily take it to fight Tories in Northampton South!"

A spokesman for Scottish Labour said: "This money is payable to the Labour Party and we look forward to receiving it and using it to campaign against the return of a Tory Government."

Sources said that while cheques had been sent to individual candidates they were made out to the Labour party.

Angus Robertson, the SNP's General Election campaign director, called on other candidates north of the border to reject the money.

He said: "This preposterous and undemocratic position of the Labour party only underlines the branch office status of the Labour Party in Scotland.

"Arch-Blairite Jim Murphy must explain why Labour candidates in Scotland are being dictated to this way - after all he is meant to be in charge of the party in Scotland.

"The initial rejection of the money proves that this was bad money that would do Labour in Scotland no good, and we challenge the other four constituencies in Scotland to speak out now."

When the donation was announced last week a Labour spokesman said the party was "delighted" that Mr Blair had put his own money behind the effort to get Ed Miliband into Downing Street.

In a letter to the 106 candidates - including Ms Brennan - Mr Blair said: "As the final countdown to the general election begins, I am writing to wish you every success in your efforts to be elected and also to make a donation to your campaign.

"I know how hard it can be to raise money to fund a local campaign, but for you, in one of our 106 battleground seats, it is even more vital. This is where the election will be won for Labour and that is why I am making a donation to all 106 campaigns.

"As one of our key seat candidates you know better than most the scale of the challenge we face, but I have every confidence that with your drive, determination and organisational skills, you will deliver a successful local campaign that will also see our party returned to government.

"So, good luck and here's to a Labour victory on May 7."