Party Funding Flashcards
What are the two party funding acts?
Political Parties, Elections and Referendums Act (PPERA) 2000
Political Parties and Elections Act (PPEA) 2009
What did the 2000 Act do?
- Introduced party spending limit of 30k per constituency
- Additional limits in devolved parliaments and the EU
- required parties to declare all donations over £5,000 to the Electoral Commission.
- ## Have to be on the UK register to donate
What did the 2009 Act do?
- Imposing tighter regulations on spending by candidates in the run-up to an election
- Allowing the Electoral Commission to investigate cases and impose fines
- Restricting donations from non-UK residents and reducing the thresholds for the declaration of donations to £500
What is short money?
Opposition parties that are entitled to a degree of state funding to cover administration costs in order to keep effective scrutiny of parliament.
Labour recived £6.6mil annual in 2015 and the SNP £1.2 mil.
What is Cranborne money?
Funds paid to opposition parties in the Lords in order to help them cover administrative costs and keep scrutiny of the government.
In 2014–15, Labour received £500k in Cranborne Money
What are the typical ways parties are funded? (5 ways)
Memberships and subscriptions Fundraising Events Donations Loans from Banks and individuals Self financing
Where do the Tories get their money?
- In 2016 58% of all declarable donations were Tories
- 11% of Tory donations are from honoured titles, the reality is likely much higher
- Donations only tend to peak in elections, inconsistent
- 2016 Tories earned 3x that of Labour in declared donations
- 2015-17 they gained 11mil from companies from financial sectors
- £4mil from property companies
- Andrew Fraser donated £2.5 mil and received an honour
- Raised £24m in 2015. £14m from donations and £1m from member fees
Where do Labour get their funds?
- Rely on trade unions for regular incomes
- Majority of funds from other sources
- 2011 80% trade unions
- 2017 40% trade unions
- Unions donated 650k in 2017
- Membership is the highest at 600k and highest in europe
- £33m raised in 2015, £8m TU and £5m members
- United the Unions is the biggest donators
What are the big 3 scandals?
1) CAB FOR HIRE - 2010 3 old LAB ministers suspended after being flamed offering to help a lobby firm for cash
2) CASH FOR HONOURS - 2006 Blair interviewed by police for allegations that peerages were offered in return for miilion pound loans to Parties
3) CASH FOR QUESTIONS - 1994 CON MPs accused of taking cash in envelops to ask specific questions in the commons
What might be some alternatives to this funding structure? (4)
1) Cap on donations
2) Limit party spending
3) Allow only individual donations
4) Replace all funding with state funding
Arguments FOR state funding
If parties are not funded by taxpayers, they will be
funded by wealthy individuals and interest groups.
State funding would allow politicians to focus on
representing their constituents rather than courting
potential donors.
Parties such as the Liberal Democrats could compete on an equal financial footing because funding would be based entirely on membership or electoral performance.
It would stop corruption and haziness of party funding with outside influence
Arguments AGAINST state funding
Taxpayers should not be expected to bankroll parties
that they oppose.
Politicians could become isolated from real-world
issues if they are denied access from interest groups.
Parties will always have unequal resources, even if
state funding is introduced — not least because there
will be differences in membership levels, and human
and material resources.
Parties will then be state owned which is an issue in itself.
Lack of party autonomy
Difficult to delegate the system creating the right money for the rights people
