A leading Midland businessman is to join the House of Lords - five years after he was barred from receiving a peerage in the “cash for honours” row.

Bob Edmiston, chair and former managing director of the IM Group, is to become a Conservative peer after he was nominated by David Cameron.

But the announcement comes five years after he was first offered a seat in the House of Lords.

Former party leader Michael Howard invited Mr Edmiston to become a peer in 2005, but the nomination was blocked by the House of Lords Appointments Commission.

They objected because he had given the Conservative Party a £2 million loan, which was later converted into a donation.

He also chaired the Midland Industrial Council, which donated six-figure sums to fund the Tory campaign headquarters in Coleshill, Warwickshire.

Mr Edmiston was questioned by police investigating the way honours were allocated. Officers also questioned Tony Blair, the Prime Minister at the time, as part of their inquiries.

However, Mr Cameron has always defended the decision to offer Mr Edmiston a peerage.

Speaking during a visit to Solihull in 2006, he said: “Bob Edmiston is a very impressive figure in British business and has made large donations to charity - £27 million I believe to African charities.”

The IM Group, based in Coleshill, imports cars. Mr Edmiston also leads Warwick-based IM Properties.

Mr Edmiston, a Pentecostal Christian, also sponsors two West Midlands academies, Grace Academy in Coventry and Grace Academy in Solihull.

Mr Cameron’s spokesman, asked about the donations controversy, said: “There is an established process on appointing peers, and that is that they are vetted through the House of Lords Appointments Commission, and there is an established process on donations, which is that they have to be declared to the Electoral Commission.”

Other new peers include former South Staffordshire MP Sir Patrick Cormack, who stood down from the Commons at the last election.

Labour donor Sir Gulam Noon, the curry tycoon who was also questioned by police investigating the cash for honours row, is to become a Labour peer.

Julian Fellowes, the film director and creator of hit ITV period drama Downton Abbey is to be made a Conservative peer while former Army chief General Sir Richard Dannatt is to take a place in the Lords as a crossbencher, despite being nominated by David Cameron when he was leader of the Opposition.

Divorce lawyer Fiona Shackleton, whose clients have included Sir Paul McCartney and the Prince of Wales, will become a Tory peer.