Parties trade blows over funding
Labour and the Conservatives attacked each other last night after the latest figures on party funding were released by the Electoral Commission.
Under a new voluntary agreement, the main parties declared for the first time the full details of loans and donations received up to June this year.
Both Labour and the Liberal Democrats revealed all their outstanding loans, which came to £28.2 million and £584,000 respectively, but the Tories only declared loans taken out during the course of the reporting period, worth £2.8 million.
Labour general secretary Peter Watt warned that the total number of Tory loans actually amounted to more than £39 million, and criticised the party for not being transparent.
“The figures published today by the Electoral Commission once again do not reveal the full extent of the Conservative party’s loans,” he said.
“The Labour party has declared all its current loans as will be required by legislation which will come into force this September. It appears that the Tories have only declared loans taken out in the last quarter.”
Liberal Democrat chief executive Lord Rennard also attacked David Cameron’s party, warning: “Public confidence in politics is likely to suffer further unless all political parties are open and transparent.
“It is a matter of deep regret that the Conservatives have only decided to report loans made to them since April 1st. They should immediately file a report to the Electoral Commission, ensuring that all their outstanding loans are a matter of public record.”
However, the Conservatives hit back by noting that donations to the Labour party had trailed off in the past three months, to just £3.4 million over the period compared to the £5.9 million given to the Tories, and they had not received any loans at all.
In the face of apparent unwillingness of wealthy donors to back the party following the cash for peerages affair, Tory chairman Francis Maude pointed out that Labour had been forced to turn to the unions for financial support.
Yesterday’s figures showed more than 74 per cent of Labour’s funding came from the unions, up from 60 per cent in the same period last year.
“Labour is now almost entirely dependent on the unions for funding. In return, they’re getting pet policies and bungs with taxpayers’ money,” Mr Maude warned.
“This sort of cronyism undermines our entire democratic process.”
