Major Labour donor gives £250,000 to Miliband ... David, that is

David Miliband has secured a major donation from billionaire Labour backer Lord Sainsbury even though his brother Ed is struggling to raise party funds.

The peer is putting £250,000 into the Movement for Change organisation set up by the defeated leadership contender to train 10,000 activists to campaign against "damaging" changes to their communities. The project is to be relaunched as an independent organisation and expanded, with both brothers now involved.

Former science minister Lord Sainsbury pumped £13 million into Labour's coffers over the past decade, but is among a number of major donors who were disappointed with the outcome of the leadership contest and appear reluctant to give while Ed Miliband is in charge.

Movement for Change, a key part of David Miliband's leadership bid, is modelled on Barack Obama's vision of harnessing the power of local activists. After losing, Mr Miliband announced he would concentrate on building up the movement, which some see as his platform for a political comeback.

Labour sources are stressing that the brothers are combining to develop the project. A spokesman said: "Ed thinks David has done a brilliant job with Movement for Change. It will play a key part in revitalising the Labour party and reconnecting it with parts of the electorate who feel we lost touch."