Party Funding

  • Created by: Byoung
  • Created on: 27-05-15 16:16

Party Funding

  • Due to massive decline in party membership, parties are now more reliant on donations
  • Conservative - £28.9m
  • Labour - "18.7m
  • Lib Dem - £8.2m
  • UKIP - £3.8m
  • SNP - £3.7m
  • Labour struggle to gain donations so heavily reliant on trade unions. received £1.5m from UNITE.
  • Conservatives gain most private donations due to pro business stance
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Party Funding - Scandals

Conservative - Peter Cruddas (Party treasurer) sold access to No. 10 and David Cameron. also key donors took advice from HSBC on how to avoid tax

Lib Dem - Michael Brown - convicted of fraud - gave £2.5m to Lib Dems

Labour - controversy that trade union members automatically gove money to Labour - Miliband changed to an opt-in system

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Party Funding - Reform

Elections & Referendums act 2000

  • no foreign donations
  • £20m spending cap at general elections
  • electoral commission set up to monitor spending
  • shareholders of company have to agree to donations to avoid corruption
  • £30000 limit per constituency
  • party has to report donations more than £7500
  • party accounts overseen by electoral commission
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Arguments in favour of state funding

  • remove spectre of corruption from donations made to the big two parties
  • help minority parties - remove feeling of buying elections
  • elections about democracy - should be fairly funded
  • opposition lacks funds for proper research to allow sufficient scrutiny
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Arguments against state funding

  • how to distribute money fairly?
  • people resent taxes going to politicians pockets
  • free society, people should be allowed to donate money if they want
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