One of Boris Johnson's top former aides has apologised for approving a £187million taxpayer-backed loan to a big property developer he was being paid to advise.
Eddie Lister supported the payment by affordable housing quango Homes England to Delancey, a firm which has built luxury flats in the Olympic Park in East London.
The Tory peer, who suddenly quit No 10 last month, admitted to colleagues at a key meeting in May 2019 that he had "previously" carried out advisory work for the developer.
But he did not tell them that while chairing Homes England he was still being paid by the company - which then received the biggest loan paid out by the government agency.
Lord Udny-Lister apologised for not recusing himself from the decision-making meeting but claimed he had never lobbied for Delancey.
The ex-aide, who worked for Boris Johnson at City Hall and No 10, told the Sunday Times that "there was never any intent to gain any unfair advantage for the company".
Delancey said it had never asked Lister to lobby on its behalf.
A Ministry of Housing, Communities and Local Government spokesman said: "We introduced the £3.5 billion Private Rented Sector Guarantee Scheme and made changes to the National Planning Policy Framework to support additional new build private rented homes.
"The loan for the programme was raised in the bond market, supported by the Government's guarantee rather than with taxpayer's money, ensuring good value for money.
"Proper process was followed at all times."
It is not the first time that the top Tory, who stayed on the payroll of two property firms throughout his time in No 10, has been caught up in allegations of a potential conflict of interest.
The Mirror revealed earlier this month that he was involved in discussions on a massive shake-up of planning laws despite his other jobs with the developers.
He admitted he had attended several meetings where the planning changes had been discussed - but denied he was a key architect of the plans.
In April, Lord Lister stepped down as the PM's Gulf Envoy after it was revealed he held talks over taking a six-figure second job with a lobbying firm with interests in the region.
