George Osborne's family firm in fourth annual loss

The Chancellor's family-owned interior design business, Osborne & Little, failed to contribute to the Exchequer last year as it recorded its fourth straight year of losses.

The upmarket fabric and wallpaper group, in which George Osborne has a multi-million pound interest, recorded a loss of £301,000 for the year to March 2012, and paid no corporation tax.

The loss came on turnover of £23m, a slight increase on the previous year. In results published over the weekend, the company said it was "pleased that turnover has remained consistent in a very challenging environment".

Despite the poor performance, the company was able to donate £4,000 to the Conservative Party. It also gave £8,000 to charity.

The loss came despite Osborne & Little increasing its gross operating margin, a measure of profitability before expenses, from 42pc to 45pc.

Osborne & Little sells high quality fabrics and wallpaper in the UK and abroad. It was established by the Chancellor's father, Sir Peter Osborne, more than 40 years ago.

As well as distributing its products through stores such as John Lewis, the company has a wholly owned US subsidiary. George Osborne's mother, Lady Felicity Osborne, is a director of the company, alongside Sir Peter.

In its latest accounts, the company revealed the highest paid director received £628,000, down from £736,000 the previous year. In total, directors' pay, including benefits and pensions, increased from £1.1m to £1.3m.

The result for 2012 compares to losses of £739,000 in 2011, £150,000 the previous year and £7.5m in 2009. Prior to this, the company made a profit.

In the accounts, the directors said they were seeing little sign of an upturn in the global economy.

"Looking ahead for the current year, market conditions continue to be challenging in the current economic climate and there is little sign of this changing in the near future," they said.

Neither George Osborne nor the company responded to calls seeking comments.