ONE of the Labour Party's biggest donors has been unveiled as a hedge fund millionaire, according to reports.

Martin Taylor, who runs a fund for Nevsky Capital in London's Mayfair, is said to be the donor who has given almost £600,000 to the party in three years.

Reports suggest the party has finally confirmed Mr Taylor's identity after initially refusing to provide any further detail on who he was other than his name which had made it difficult to ascertain exactly which person of that name had made the donation.

The revelation will likely provoke accusations of hypocrisy after leader Ed Miliband attacked the Conservatives last month for accepting millions of pounds from a "select few in the hedge fund industry".

Labour is reported to have issued a statement from Mr Taylor saying: "There is no mystery. This 'Martin Taylor' is me. I am a born and bred Londoner who also happens to be a hedge fund manager.

"And I am proud to support the Labour party."

He added that it may seem a "bit odd" to people that he backed Labour because "it is commonly believed that everyone in the financial sector supports the Conservative party in a quest to pay ever lower level of tax".

He said that he had a strong belief that "everyone should contribute to society and that those who are lucky enough to earn a lot should contribute more".

Mr Taylor is also reported as saying his family background has influenced his decision to support Labour as his father was a local councillor for the party for more than 30 years.