Party funding

Question 1

List the main ways in which parties are funded

Answer 1

• Collecting membership subscriptions
• Holding fundraising events
• Receiving donationns from supporters
• Raising loans from wealthy individuals or banks
• The self-financing of candidates for office
• Grants from the electoral comission (up to £2 million per party)
• Money granted to opposition parties in the commons or lords

Question 2

What % of the Labour party’s income came from trade union donations between 2014-15?

Answer 2

60%

Question 3

what % of Labour’s income came from trade union donations in 2017?

Answer 3

11%

Question 4

Why has there been a drop off in the proportion of Labour’s income that is made up by trade union donations?

Answer 4

Because the rules for union donations have made it easier for individual union members to opt out of donating to a political party

Question 5

Why are small parties more unlikely to receive donations?

Answer 5

Because donors will not want to contribute to a party whose prospects of getting into government are remote

Question 6

Why do some people still donate to minor parties?

Answer 6

They are acting out of idealism rather than any prospect of actually gaining influence

Question 7

How was the funding of political parties regulated in 2000?

Answer 7

Through the political parties, elections and referendums act

Question 8

List the stipulations of the 2000 PPER Act

Answer 8

• People not on the UK electoral roll could no longer make donations
• Limits were placed upon how much could be spent on parliamentary elections
• Donations over £500 had to be declared
• Donations over £7500 had to be placed on the electoral register

Question 9

What was the main aim of the 2000 PPER Act?

Answer 9

To create greater transparency

Question 10

How were reguations developed in 2009, following the MP expenses scandal?

Answer 10

Through the Political Parties and Elections Act. This gave the Electoral Comission the power to investigate and impose fines, restricted donations from non-UK residents and imposed tighter regulations in the run up to elections

Question 11

Why is funding from large donors so controversial?

Answer 11

Because it represents a hidden and unaccountable form of political influence, as donors often expect some kind of return on their investment

Question 12

In what ways can donations prove corrupt?

Answer 12

• ## Some donors may expect to receive an honour from party leaders, such as a peerage or knighthood

Question 13

Why have parties become even more reliant upon donors?

Answer 13

Due to the steady decline in party membership

Question 14

How much did the Conservatives receive from prominent figures in the financial sector between 2015-2017?

Answer 14

£11.3 million

Question 15

How much did Unite give to Labour in early 2017?

Answer 15

£657,000

Question 16

Why have trade union donations to Labour been criticised?

Answer 16

Because members are not given a clear enough choice over whether their donations should be spent in this way. Its also said that it has allowed labour to become unduly influenced by trade union leaders

Question 17

What did the 2007 Phillips report conclude about the current state of affairs?

Answer 17

That the way UK parties were funded was undemocratic and in need of reform

Question 18

What did the Phillips report propose?

Answer 18

Suggested that state party funding based on membership size or vote share would make party politics fairer and more democratic

Question 19

What are the 4 solutions to the issue of party funding?

Answer 19

• Impose restrictions on the size of donations to political parties. To be effective, the cap would have to be relatively low
• Impose tighter restrictions on how much parties are allowed to spend. This would make large-scale funding futile
• Restrict donations to individuals
• Replace all funding with state grants for parties, raised from general taxation

Question 20

In what ways does state funding already exist?

Answer 20

• Grants from the Electoral Commission
• Policy development grants that can be used to hire advisors on policy
• Short money is allocated to all opposition parties in the house of commons
• Cranbone money is given to opposition peers in the lords

Question 21

Define short money

Answer 21

Funds given to opposition parties to fund their parliamentary work. The ammount is based upon how many seats and votes the party won at the last election

Question 22

Define cranborne money

Answer 22

Funds paid to opposition parties in the lords to help cover the costs of research and administration, allowing them to scrutinise the work of the government

Question 23

Why did UKIP refuse short money in 2015?

Answer 23

Because their one MP said it was corrupt and served only to benefit the established parties

Question 24

What is the main arguement against state party funding?

Answer 24

Taxpayers are reluctant to see their taxes used for this when attitudes to parties are already at a low ebb

Question 25

What is another popular policy idea aside from state funding?

Answer 25

Eliminating the abuses in the system. This would involve transparency, limits on how much businesses and trade unions can donate, as well as breaking any link between donations and honours

Question 26

List the arguements in favour of full state funding

Answer 26

• It would end corrupt donations
• It would end ‘hidden’ forms of influence
• It would reduce the large financial advantage enjoyed by the established parties, giving smaller parties the opportunity to make progress
• Ensuring participation from groups that don’t have easy access to funds would improve democracy

Question 27

List some arguements against full state funding

Answer 27

• Taxpayers might object to funding parties they find disagreeable
• It would be difficult to know how to distribute funding
• Parties could lose their independence and become organs of the state
• It might lead to excessive state regulation of political parties