Brown vow over party funding reform

Gordon Brown pledged to use the lessons of Labour's latest sleaze scandal to push forward reform of the entire political party funding system.

As police investigated how the governing party concealed the true source of more than £600,000 of donations, the Prime Minister told the the party's national policy forum that it was "time to act".

And he signalled that controversial changes to the system of trade union funding should be up for negotiation as part of proposals being drawn up by Justice Secretary Jack Straw.

Mr Brown's bid to regain the political initiative came as police began investigating how property developer David Abrahams was able to give the party £650,000 through a series of associates to keep his identity secret, in breach of disclosure rules.

The Prime Minister repeated to party activists a promise to co-operate fully with that probe but said the case highlighted the need for wider reform.

"In the light of the events of the last week, coming on top of difficulties that all parties have experienced over recent years, we have learned just how easily trust in our politics can be eroded," he said.

"The last week has shown the need for immediate changes in our own party. But I would also argue it has seen the need for broader change within our system of political funding.

"Openness is indeed the best guide, transparency the best system, sunlight the best solution. But I am more convinced than ever that more comprehensive safeguards for public disclosure are only the first step."

Mr Brown said: "We must now complete the work of change, address the problems that still remain to be resolved, not hesitate to make the changes necessary and seek to build greater confidence in the integrity of our political system".

Cross-party talks on party funding reforms collapsed recently when David Cameron's Conservatives walked out amid failure to agree on a package of changes recommended by a review by Sir Hayden Philips.