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Party funding options report due Party funding options report due
(about 8 hours later)
Options for changes to the way political parties are funded are set to be published in an interim report.Options for changes to the way political parties are funded are set to be published in an interim report.
Sir Hayden Phillips, who was asked to look at party funding in the wake of "cash for honours" allegations, will put forward suggestions for the future.Sir Hayden Phillips, who was asked to look at party funding in the wake of "cash for honours" allegations, will put forward suggestions for the future.
One idea is to take more money from the taxpayer, but no recommendations will be made until December, when the full report is published.One idea is to take more money from the taxpayer, but no recommendations will be made until December, when the full report is published.
Sir Hayden will warn: "We cannot have a healthy democracy for nothing."Sir Hayden will warn: "We cannot have a healthy democracy for nothing."
Allegations deniedAllegations denied
The former senior civil servant is trying to find a consensus between the political parties on how they are funded.The former senior civil servant is trying to find a consensus between the political parties on how they are funded.
Police are investigating whether peerages have been offered in exchange for cash, after it was revealed that all three main parties were given secret loans ahead of the last election.Police are investigating whether peerages have been offered in exchange for cash, after it was revealed that all three main parties were given secret loans ahead of the last election.
All concerned in the inquiry deny wrongdoing.All concerned in the inquiry deny wrongdoing.
Sir Hayden's report will examine calls for the £20m limit on the amount each party can spend at elections to be reduced.Sir Hayden's report will examine calls for the £20m limit on the amount each party can spend at elections to be reduced.
Party politics costs Sir Hayden PhillipsParty politics costs Sir Hayden Phillips
The interim report will set out four scenarios for the future of public funding: minimal change, increased transparency, a cap on donations and greater levels of public funding.The interim report will set out four scenarios for the future of public funding: minimal change, increased transparency, a cap on donations and greater levels of public funding.
However, Sir Hayden is not recommending any of the options.However, Sir Hayden is not recommending any of the options.
Sir Hayden said the way parties were funded could "diminish cynicism and restore confidence if it can play a part in encouraging better engagement between parties and voters over time".Sir Hayden said the way parties were funded could "diminish cynicism and restore confidence if it can play a part in encouraging better engagement between parties and voters over time".
But he stressed, in a press release mistakenly released a day early, that "party politics costs".But he stressed, in a press release mistakenly released a day early, that "party politics costs".
"While parties can reduce the amount they spend, they will still need to get some money from somewhere, whether from donations or public funds, or a mixture (as now) of both," he said."While parties can reduce the amount they spend, they will still need to get some money from somewhere, whether from donations or public funds, or a mixture (as now) of both," he said.
Labour has revealed it had been secretly loaned nearly £14m ahead of the last election, the Conservatives borrowed £16m from 13 wealthy backers while the Liberal Democrats say they owe £850,000 to three backers.Labour has revealed it had been secretly loaned nearly £14m ahead of the last election, the Conservatives borrowed £16m from 13 wealthy backers while the Liberal Democrats say they owe £850,000 to three backers.
TransparencyTransparency
Conservative Party chairman Francis Maude said his party supported a cap on donations.Conservative Party chairman Francis Maude said his party supported a cap on donations.
He added: "It's clear that if public funding for political parties is to increase, political parties must tackle the perception that donations can buy influence or favours."He added: "It's clear that if public funding for political parties is to increase, political parties must tackle the perception that donations can buy influence or favours."
Labour chairman Hazel Blears said the party was "absolutely committed to increased transparency and accountability in political party funding".Labour chairman Hazel Blears said the party was "absolutely committed to increased transparency and accountability in political party funding".
For the Lib Dems Norman Lamb MP added: "Transparency is the only way we will allay the public's mistrust and suspicion about how parties are funded." For the Lib Dems, Norman Lamb added: "Transparency is the only way we will allay the public's mistrust and suspicion about how parties are funded."