Lord Hain added: “This is a kid from a very deprived background, who is black, and has made it in what is a rich person’s sport – an incredible achievement.
“He has been inspirational on the whole question of racism and Black Lives Matter. He supports charities and works on climate change.
“On the topic of tax, which is said to be a niggle, Lewis is a top British taxpayer. He has a house in London, and I have explained all of this. It’s baffling.”
The decision as to whether Hamilton will be nominated for honours in the New Year will be made after considering whether or not it would be better to wait until the F1 champion has called time on his career.
Asked about the prospect of being knighted at the weekend, Hamilton said: “When I think about that honour of being knighted, I think about people like my grandad who served in the war.
“Captain Tom [Moore] waited 100 years for that great honour, and then you have these doctors and nurses, who are saving lives during this hardest time ever. I don’t look at myself as an unsung hero. I haven’t saved anybody.”
Hamilton has also recently been named the most influential black person in the UK by Powerlist 2021.
The F1 racer was ranked above the likes of Professor Kevin Fenton, Stormzy and Michaela Coel.