A senior Tory official who is accused of selling access to the Prime Minister and Chancellor for a fee of £200,000-250,000 resigned on the wee hours of Sunday.

Tory party's co-treasurer Peter Cruddas resignation comes hours after the Sunday Times released a sting video using under-cover reporters, in which he was found to be discussing about cash for access to the PM.

Soon after the release of the video, Cruddas issued a statement, which described the comments to the under-cover reporters as 'bluster' and said he has resigned from the position of Treasurer of the Party.

"I deeply regret any impression of impropriety arising from my bluster in that conversation. Clearly there is no question of donors being able to influence policy or gain undue access to politicians. Specifically, it was categorically not the case that I could offer, or that David Cameron would consider, any access as a result of a donation," read the statement issued by Cruddas.

He said in order to make that clear beyond doubt, he has decided to resign with immediate effect.

Cruddas said he had taken the position only recently and had arranged the meeting in which he was filmed without consulting any Conservative politicians or officials.
In the Sunday Times footage, Cruddas was seen suggesting that £200,000 to £250,000 is "premier league" for granting access to David Cameron and George Osborne.

Select transcript from the sting video of the Sunday Times is here:

"When we talk about your donations the first thing we want to do is get you out to Cameron and Osborne dinners".

"You do really pick up a lot of information. And when you see the prime minister, you're seeing David Cameron you're not seeing the prime minister.

"But within that room everything's confidential and you will be able to ask him practically any questions that you want".

A Conservative Party spokesman had earlier said that no donation was ever accepted or even formally considered by the Conservative Party, according to an AFP report.