Party funding

• Parties must fund themselves:

  • donations - can only accept donations from someone on the electoral register, a certified UK business, a registered trade union
  • events
  • membership fees
  • there are no rules on how much an individual can give, but they must declare it (£1,000 constituency, £5,000 nationally)
• Subsidies are given, to ensure parliamentary scrutiny in the Commons is effective:

  • £2m 'policy development grant' (shared among parties, helps employ political advisors + build manifestos)
  • Opposition party is given 'short money', to fund their office (£21,400)
  • 'Cranbourne money' funds HoL scrutiny, Lords are not salaried
• Laws surrounding funding:

  • Political Parties, Elections and Referendums Act of 2000
  • Set up an independent electoral commission
  • Capped spending at £30,000 per constituency
  • All donations (nationally) over 5000, (constituency) 1000, must be declared
• 2006 'Cash for Honours' scandal

  • Loans were made a commercial rate (avoiding laws from the Act)
  • Business people who have loans were nominated for peerages by Tony Blair
• Should parties receive state funding?

  • Y: It stops wealthy groups influencing parties
  • N: Politicians may be less interested in what pressure groups have to say
  • Y: Parties can focus on representing the electorate not fundraising
  • N: Taxpayers should not be funding parties
  • Y: Smaller parties will get fair financial support
  • N: There would be disagreement over how funding is allocated
  • Y: Less wealthy pressure groups would get a more equal hearing by parties