Britain's coalition hands back cash bequest

LONDON (Reuters) - One of the more unusual political donations in British political history will be paid into the public purse after the two-party coalition government bowed to pressure on Wednesday to return a former nurse's 520,000-pound bequest.

Prime Minister David Cameron's Conservatives and their coalition partners, the Liberal Democrats, initially divided Joan Edwards' money between them, saying it had been left to "whichever party" was in power when she died.

But they decided to hand the money to the Treasury after protests from newspapers and MPs who said Edwards had intended to help the nation, not political parties.

In a copy of the will seen by the Daily Mail newspaper, Edwards, 90, left her wealth to "whichever government is in office at the date of my death for the government in their absolute discretion to use as they think fit".

The bequest made Edwards the biggest donor to the two parties in the second quarter.

Conservative MP Zac Goldsmith said "no one can truly believe this lady wanted her money squandered on electioneering". Britain goes to the polls in May 2015.

Party funding is a perennial source of controversy in British politics. Parties must declare all donations over 7,500 pounds to the electoral watchdog. The Edwards bequest was disclosed in the watchdog's quarterly report on Tuesday.

(Reporting by Peter Griffiths; Editing by Steve Addison)

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