Parties deadlocked on funding plans

The Committee on Standards in Public Life said an extra 23m pounds a year of taxpayers' money should be used to fund political parties
12 April 2012

Efforts to clean up political funding remain deadlocked after all sides rejected the latest reform package - prompting a sleaze watchdog to warn it could end in another scandal.

A 15-month inquiry proposed a £10,000 cap on donations in a bid to end "cash for influence" scandals and corruption allegations - partly paid for by a £23 million-a-year taxpayer subsidy.

The three biggest parties united to rule out asking voters to make up some of the resulting shortfall in the present economic climate - even if the change was delayed until 2015.

But the Tories and Labour also remained bitterly divided over the same elements which have stymied several previous reform efforts, including the cap and tougher rules for trade unions.

The continued stand-off sparked a warning from the Committee on Standards in Public Life, which drew up the proposals, that it must not take another major scandal to spark change.

Chairman Sir Christopher Kelly, accused politicians of failing to consider the proposals properly and said the strict cap and extra state funding was "the only way" to clean up the system.

"The issue of party funding cannot be shelved until the next scandal brings it to the fore.

"All three main parties now depend on large donations from a very small number of rich individuals or organisations for the funds necessary for their survival.

"This cannot be healthy for democracy," he said - refusing to rule out the possibility that corrupt practices continued today.

All three main parties committed to reform in their 2010 general election manifestos after negotiations led by Sir Hayden Phillips failed to find consensus and broke up.

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