party finance

   The means of financing political parties have been controversial in recent years. Parties need funding to maintain an operational headquarters, run elections and get their message across. Given the decline in party membership, they seek other sources of finance. The Labour Party traditionally relied on trade union support, although in the Blair years it has sought and received money from wealthy supporters, including many businesspeople. The Conservative Party has also traditionally wooed the business community, as well as receiving support from affluent individuals; they also raise money via voluntary activity such as holding garden parties.

   All parties find themselves short of money. Reliance on institutional or individual backers is controversial and open to abuse. So too is the alternative of greater state funding, which involves using taxpayers’ money to support bodies of which they may not approve. The yearlong review of Sir Hayden Phillips that reported in March 2007 recommended spending limits on political campaigns and caps on individual donations. However, it found it impossible to achieve agreement between the main parties, although Phillips believed that a deal was possible. The review backed a £25 million-a-year rise in state funding.

   See also: loans for peerages