Reports & publications

Abstract of Report on party funding

Presenting the Committee's Report on party funding to the Prime Minister, Lord Neill said: 'Many members of the public believe that the policies of the major political parties have been influenced by large donors, while ignorance about the sources of funding has fostered suspicion. We are, therefore, convinced that a fundamentally new framework is needed to provide public confidence for the future, to meet the needs of modern politics and to bring the United Kingdom into line with best practice in other mature democracies.'

Proposals for reform of party funding include:

Full public disclosure of donations (in cash or in kind) to political parties of £5,000 or more nationally (£1,000 or more locally)

An end to blind trusts

No more foreign donations

Anonymous donations to political parties of £50 or more banned

A £20 million national campaign expenditure limit in a general election

Auditing and accounting rules for political parties

No new state funding, but tax relief on donations up to £500

Scrutiny by an Honours Scrutiny Committee where there might be a connection between the honour and a political donation

Increased funding for opposition parties in Parliament

Controls on organisations and individuals (other than a political party) spending more than £25,000 nationally on political activity during a general election

Continued free access to television and radio for party broadcasts

Maintain the ban on political advertising on television and radio

Shareholder consent for company donations

A proper voice for both sides of the argument in a referendum

To ensure compliance, oversight by an independent and authoritative Election Commission with wide executive and investigative powers.

The proposals as a whole aim to encourage:

More openness about the sources and use of party funds

Greater public confidence that individuals and organisations are not buying influence with political parties

Individual parties to seek out many more small- to medium-sized donations to their funds.

The Funding of Political Parties in the United Kingdom is published by the Stationery Office;

volume 1: Report, Cm 4057-I, price £19.70

volume 2: Evidence (including CD-ROM), Cm 3702-II, price £68.00

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