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Cap political party donations at £10,000, says inquiry | |
(40 minutes later) | |
A £10,000 cap on donations to political parties and more restrictions on trade union funding are among key proposals from an independent inquiry. | |
The Committee on Standards in Public Life is also recommending a cut in caps on pre-election spending - and an extra £23m a year taxpayer support. | |
Chairman Sir Christopher Kelly said allowing the status quo to continue "cannot be healthy for democracy". | |
All parties will have to agree proposals if they were to go forward. | |
Sir Christopher admitted href="http://www.public-standards.org.uk/OurWork/Party_Political_Finance.html" >the proposals would make "uncomfortable reading" for some and parties would have to "show courage in implementing them". | |
Leaders must "work together to clean up this part of politics" - but said the proposals "provided the blueprint" for them to do so. | |
He said the Conservatives' preferred annual cap - of £50,000 rather than £10,000 - was not suitable as it amounted to twice the average salary - and over a five-year Parliament added up to £250,000. | |
"Can that seriously be regarded as not being 'big money'?" he said. | |
But he said the Labour Party should accept changes to union funding if they wanted it to be treated as a large number of individual donations - perhaps by allowing union members to "opt in" to affiliated fees, rather than opting in as at present. | |
Deputy PM Nick Clegg has said he does not want taxpayers to be asked to pay more to fund political parties. | |
'Immensely important' | 'Immensely important' |
The £10,000 cap on individual donations and member approval for union donations would be likely to lead to a fall in income for the Conservatives and Labour. | |
So the committee is recommending increased state funding - worth £3 for every vote received for parties who have at least two representatives at Westminster or the devolved assemblies - ruling out UKIP, the BNP, and others. | |
Under the 2010 general election results, it would mean about £32.2m for the Conservatives, who got 10.7m votes, about £25.8m for Labour, who got 8.6m votes and £20.5m for the Lib Dems, who got 6.8m votes. | Under the 2010 general election results, it would mean about £32.2m for the Conservatives, who got 10.7m votes, about £25.8m for Labour, who got 8.6m votes and £20.5m for the Lib Dems, who got 6.8m votes. |
But any final agreement depends on agreement from all the main political parties. | |
The deputy prime minister's comments in the House of Commons earlier this month may limit the chances of success. | The deputy prime minister's comments in the House of Commons earlier this month may limit the chances of success. |
He said while it was "immensely important" to clear up party funding "it would not be right to ask our hard-pressed taxpayers to pay more to political parties at a time when they are having to deal with so many cuts and savings elsewhere". | He said while it was "immensely important" to clear up party funding "it would not be right to ask our hard-pressed taxpayers to pay more to political parties at a time when they are having to deal with so many cuts and savings elsewhere". |
The report is the latest in a series of attempts to reform party funding, which grew in urgency in the wake of the cash-for-honours affair. | The report is the latest in a series of attempts to reform party funding, which grew in urgency in the wake of the cash-for-honours affair. |
The coalition agreement between the Conservatives and Lib Dems pledged to "pursue a detailed agreement on limiting donations and reforming party funding in order to remove big money from politics". | The coalition agreement between the Conservatives and Lib Dems pledged to "pursue a detailed agreement on limiting donations and reforming party funding in order to remove big money from politics". |
No agreement | No agreement |
But finding a solution that has cross-party agreement has previously proved difficult. | But finding a solution that has cross-party agreement has previously proved difficult. |
Labour, with its heavy dependence on the trade unions for funding, resists curbs on unions donating on behalf of individual members. | Labour, with its heavy dependence on the trade unions for funding, resists curbs on unions donating on behalf of individual members. |
The Conservatives, who rely more on large individual donors, are against further restrictions on what they can give. | The Conservatives, who rely more on large individual donors, are against further restrictions on what they can give. |
The committee's chairman, Sir Christopher Kelly, has said he hopes his body's independence from any political party will make the report's findings more acceptable to voters. | The committee's chairman, Sir Christopher Kelly, has said he hopes his body's independence from any political party will make the report's findings more acceptable to voters. |
At present there are no limits on donations, but the name of anyone who gives more than £7,500 to a party is made public. | At present there are no limits on donations, but the name of anyone who gives more than £7,500 to a party is made public. |
The last major attempt to reform party funding began in 2006, at the time of the cash-for-honours affairs. | The last major attempt to reform party funding began in 2006, at the time of the cash-for-honours affairs. |
Former Permanent Secretary Sir Hayden Phillips was asked to find as much of a consensus as possible on a future system for funding. | Former Permanent Secretary Sir Hayden Phillips was asked to find as much of a consensus as possible on a future system for funding. |
He recommended a £50,000 limit on cash donations to parties, but after five sessions of talks with Labour, the Conservatives and the Liberal Democrats, the process broke down without agreement. | He recommended a £50,000 limit on cash donations to parties, but after five sessions of talks with Labour, the Conservatives and the Liberal Democrats, the process broke down without agreement. |
The Cabinet Office - which would introduce any change - has set a deadline of December 2014 for legislation. | The Cabinet Office - which would introduce any change - has set a deadline of December 2014 for legislation. |