Reading is bracing itself for an orgy of congratulations in the local newspapers as editors fall over themselves to praise John Madejski, the man who owns most of the town, donates thousands of pounds to the the local Conservative Party's coffers and has the local Labour party by the balls over funding for the Madejski Academy and the Station Hill development.

The news of the honour for Sir John in the New Year's honours list comes as no surprise after Tony Blair last February openly admitted using the honours system to reward tycoons who gave money to support Academy Schools. At a Downing Street press conference, Mr Blair said he was perfectly comfortable for people to believe that those who helped finance his city academies scheme were rewarded by the government through the honours system. Giving money to a government scheme, the then Prime Minister said, was like donating money to support an art gallery.

"It's not a question of endorsing my policy, it's a question of contributing to society," Mr Blair said. "It is absolutely right that we say these are people who have done something good for our country." He continued: "Especially when it saves Labour from having to spend real money on education so that we can continue to piss tax payers monies up the wall on consultants and PFI contracts."