Funding Of Poltical Parties Flashcards
How are parties funded ?
- membership subscription from members
- donations from supporters
- loans from wealthy individuals or bank
How does labour receive contribution of funds ?
Trade union
How does conservatives get their funds ?
Wealthy individuals or businesses
What happened in the 2000 for funding parties ?
Funding of parties was regulated
What was the funding of Parties regulated by ?
Funding was regulated by the 2000 political parties , elections and referendums Act
What regulations did 2000 political parties , election and referendum act set ?
- people not on the UK electoral roll could not make donations
- donations over 500 pounds had to be declared
- limited placed on how much could be spent on parliamentary election
The regulation of spending was further developed with what ?
2009 political parties and election act
Why was the 2009 political parties and election act set in place ?
MPS expenses scandals that gave the commission the power to investigate and impose fines and restrictions on donation from non uk resident
What was the expense scandal of MP in 2009 ?
Westminister expenses scandal
Why is funding controversial by funding large donors represent hidden and unaccountable form of political influence (
Parties are not allowed to change policies due to donations but donors expect return for their investment
How can funding be corrupt for funding controversy?
Some donors may expect to receive honour from party leader e.g knighthood in return for their generosity
Some donors may expect to receive honour from party leader e.g knighthood in return for their generosity , what is this called ?
‘Cash for honours’
example of cash for honours ?
March 2024 Mohamed Mansour , buisness man who donated 5 million to tories gets a knighthood on the recommendation of Rishi sunak but the opposition called for Sunak to return the donation as emerged that Mansour family company was still operating in Russia after invasion in Ukraine
What made parties even more reliant on donors and how did this lead to controversy of funding ?
Decline of Party membership which opened the possibility of corruption as would purchase political influence
Example of labour funding in 2023
Fran Perrin, a daughter of the peer David Sainsbury, is Labour’s biggest ever female donor. She started giving large sums from 2021 and has now donated more than £2.3m.
Funding of conservative in 2023
The Conservatives received £10m from the healthcare tech entrepreneur Frank Hester and his company, the Phoenix Partnership (Leeds).
Ways of alternative funding structures ?
- restrictions on donations to parties
- restrictions on how much party can spend
- replace spending with state grant taken out of/paid out of general taxation
How do opposition party receive funds for their parliamentary work in the House of Commons ?
Short money
How do opposition in the house of the lord receive funding ?
Cranborne money
What does cranborne money help with in the House of Commons ?
Help opposition parties in role of scrutiny of the government
How much short money did Labour recieve in 2019
More than 8 million
How much short money did UKIP refuse after winning one seat in 2015 ?
Over half a million
Why did UKIP reject short money ?
Corrupt and designed to favour established parties
Only way that can make more equality in funding ?
State funding for parties despite the fact that taxpayers might be reluctant on the fact that their taxes will be used to finance parties when attitudes to parties are low
As long as funding is determined by what will it be likely that the large parties will be placed at a significant advantage ?
Market force
What is short money ?
Given to the opposition to facilitate parliamentary work in the House of Commons
What is the amount of short money based on ?
How many seats and votes each party won at the previous election
Cranborne money helps to fund opposition where
House of Lords
Short money helps to fund opposition where ?
House of commons
Arguments for state funding for UK parties ?
- end opportunities of corruption from donations
- reduce finance advantage from large parties and allow smaller parties opportunities to make progress and improve democracy
So what party now will receive the most short money ?
Labour as the opposition with the most seats
