Union links sacred in Labour funding plans
Labour has today published proposals for a shake-up in political party funding, but insisted the reforms must not affect its relationship with the unions.
The consultation document, which will be sent out to Labour organisations and members, outlines suggestions on how public confidence can be restored in the party funding system following the loans for peerages row.
It includes proposals for a possible cap on individual donations, a cap on party spending not just in general election campaigns but throughout the year, and ways to make the system more transparent.
The document, which will form the basis for discussions at Labour’s annual party conference this autumn and then feed into Hayden Phillips’ review of party funding, also suggests a new investment fund to support smaller parties.
In addition, it asks whether political parties should be given some form of tax relief or charitable status, saying they are vital to a healthy democracy, which in turn benefits society.
However, the consultation paper is clear that any changes to party funding must preserve the right for parties to receive donations from affiliated organisations – in Labour’s case, from the trade unions.
“Our link is one that is based on values, not simply finances, and we therefore totally
reject any assertion by our political opponents that the affiliated link is one of
the problems in party funding,” it says.
There is an “important material difference” between donations from businesses and donations from affiliated organisations, the report says – the latter are “component elements” of the Labour party.
“In addition, the money that we receive from our affiliates is an aggregation of the
hundreds of thousands of donations from affiliated members,” the document says.
“We believe our internal membership structures are open and transparent and are happy to discuss this matter if raised with the review.”
But Conservative chairman Francis Maude warned this approach proved Labour was “not serious about restoring trust in politics”, and insisted his party’s proposals for caps on party spending and donations were more likely to win back public trust in politics.
“Labour has put forward a six-page response to justify the unjustifiable: the unions pulling Labour’s strings,” he said.
“In return for cash, the unions get policies which benefit them but not the wider public. This isn’t a serious contribution to the debate; it’s the braying of a dinosaur.”
Speaking at the launch of the document today, Labour party chairman Hazel Blears insisted that the proposals would provide a basis for a “lasting settlement” that would provide political parties with the funding they needed.
“Parties are at the heart of our democracy. Our system cannot function without them. That means we need to establish a fair, transparent, and acceptable method of providing them with resources,” she said.
The proposals come after concerns were raised about the influence exerted by a handful of wealthy businessmen who are currently bankrolling Britain’s political parties.
