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Plans to change political party funding to be published Cap political party donations at £10,000, says inquiry
(40 minutes later)
New proposals on funding political parties are expected to recommend a big increase in taxpayer funding. A £10,000 cap on donations to political parties and more restrictions on trade union funding are among key proposals from an independent inquiry.
It has been reported they could include a £10,000 cap on individual donations and changes to union donations. 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.
The Committee on Standards in Public Life proposals could also include giving state funding to parties worth £3 for every vote they receive. Chairman Sir Christopher Kelly said allowing the status quo to continue "cannot be healthy for democracy".
Deputy PM Nick Clegg has already said he does not want taxpayers to be asked to pay more to fund political parties. All parties will have to agree proposals if they were to go forward.
The report is due to be published on Tuesday at 1030 BST. 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'
It is expected to recommend a £10,000 cap on individual donations and member approval for union donations. 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.
That would be likely to lead to a fall in income for the Conservatives and Labour - with money instead coming from taxpayers at the rate of £3 per vote. 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 finding depends on agreement from all the main political parties. 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 £3-per-vote proposal would see a huge increase in state funding of political parties, worth up to £100m over a five-year Parliament.
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 agreementNo 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.