THE decision of the Labour Party to allow burger giant McDonald's to sponsor a high profile conference reception next month has split local backbenchers.

The American multi-national will pay £15,000 for food and drink for the 'chairman's reception' at the annual gathering in Brighton.

It comes on the eve of Tony Blair's keynote speech, but both the party and the company reject allegations that the deal was only agreed on condition that the Prime Minister attended.

However, sources agree that Labour leader is likely to turn up as he has at two previous conference receptions sponsored by McDonalds.

Some Labour MPs -- including Worsley's Terry Lewis -- have strongly attacked the deal.

Burnley's Peter Pike said: "I have some reservations about sponsorship. The important thing is that money from large companies does not affect policies. I would prefer it if we didn't have to have sponsorship, but we have to raise money somehow."

The party hopes to raise more than £4 million from sponsorship at the conference.

Former minister and Hyndburn MP Greg Pope, said: "I am totally relaxed about this. We live in the modern world and have to raise money. The majority of my constituents at some time go to McDonalds for a meal. Why should the Labour party be any different?

"Political parties that lose touch with their supporters end up in difficulties. Look at the Tories."