Party funding

• Parties funded by:


  Collecting membership subscriptions

  Fundraising events

  Donations

  Loans from rich/banks

  Self-financing of candidates for office

  £2 mill per part available in grants from electoral commission and short money which grants funds for research depending on size
• Short money


  Name given to financial assistance for opposition parties in HOC.

  Fund parliamentary work
• Cranborne money


  Annual payment to opposition parties in HOL to help with costs

  Funds scrutiny
• A problem with short money is that the major parties get the most funding as they have the most seats
• Donors expect some sort of political return e.g. they influence policies.

  Corrupt
• 2000 Political Parties, Elections and Referendums Act tried to reform party funding


  Independent electoral commission set up to supervise part spending on election campaigns

  Amount part could spend in constituency capped at £30,000

  Donations over £5000 have to be declared

  Donations from people on UK electoral roll banned
• Scandals over donations


  Cash for peerages
• For state funding of parties

  Gives smaller parties voice

  Creates leveled playing field

  Cuts Cons links with business

  Cuts Labour links with trade unions

  Not that expensive

  Increase public trust

  Avoid people paying for peerages

  No unproportional campaign spending which leads to duopoly
• Against state funded parties

  Should have freedom to support

  Discourage membership/participation

  Disproportionate financial spending has little impact on electoral success

  State funding suggest political parties servants of state- decreases independence

  Controversial to decide how much each party claims