funding

Question 1

where do political parties get their funding from? (8)

Answer 1

• membership fees
• private donations
• private loans
• fundraisers
• up to £2m in PDG
• cranborne money
• short money
• self financing

Question 2

what is short money?

Answer 2

public funds given to opposition parties in the house of commons to pay administration costs and ensure effective opposition

Question 3

what is cranborne money?

Answer 3

public funds given to opposition parties in the house of lords to pay administration costs and ensure effective opposition

Question 4

what is PDG?

Answer 4

state funding that all parties get in order to develop policies

Question 5

how is it decided how much money parties get in terms of PDG’s?

Answer 5

depends on % of vote and % of seats won in the last general election

Question 6

what is the political parties , elections and referendums act 2000?

Answer 6

• people not on the electoral college couldn’t make donations
• donations over £500 had to be declared
• donations over £7500 had to go on the register

Question 7

what is the strengthening democracy act?

Answer 7

recommended state funding by taxpayers for all major parties be the main source of funding bases on vote share and membership

Question 8

what is the political parties and elections act 2009?

Answer 8

electoral commission can investigate and restrict donations from non uk residents and impose fines

Question 9

in 2023, what did the elections cap increase by so that the conservatives could hold onto the funding it had already received?

Answer 9

increased by 80% - £19.5m to £32m

Question 10

what is controversial about how the parameters are set for the spending cap?

Answer 10

decided by statutory instruments so no vote/debate in the house of commons

Question 11

what was the cash for honours scandal 2006?

Answer 11

tony blair was offering life peerages in return for loans to the labour party, leading to concerns about transparency and corruption in party funding

no charges made but raised public debate about party financing

Question 12

what was the bernie eccleston scandal?

Answer 12

F1 boss bernie ecclestone donated £1m to labour party in order to be excused from a tobacco advertising ban

raised questions about the influence of large donations onn government policy

Question 13

what was the pandora papers scandal 2021?

Answer 13

a leak of financial documents revealing how world leaders, politicians and wealthy individuals used offshore tax havens to hide up to £35m and avoid taxes

highlighted issues of transparency and the influence of wealth in politics

Question 14

what was the frank hesler scandal?

Answer 14

frank hessler donated £15m to the conservatives but said dianne abbot made him ‘want to hate all black women’ and she should be ‘shot’ - sunak did not give any money back

Question 15

what are the arguments for state funding political funding? (5)

Answer 15

• increase pluralism
• cheap
• encourage proper campaigning
• diminish the power of big money
• already exists in short/cranborne money

Question 16

what are the arguments against political funding? (5)

Answer 16

• would only force rich donations underground instead
• goes against freedom of expression
• people dont want their money spent on parties they disagree with
• state funding wont end the dominance of main parties anyways
• effective legislation already exists to regulate funding