The manifesto on which the UK Government was elected in 1997 included three commitments
regarding party funding:
· to oblige political parties to declare the source of all donations above a minimum figure
· to ban foreign funding of political parties
· to ask the Committee on Standards in Public Life to consider how the funding of political
parties should be regulated and reformed
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Summary of main pointsThe Political Parties, Elections and Referendums Bill was presented on 21 December 1999and is due to be debated on second reading on Monday 10 January 2000. This ResearchPaper covers the provisions in the Bill relating to donations to political parties and partyfinance in general. Two companion Research Papers are also available: RP 00/1 dealing withthe electoral aspects of the Bill, and RP 00/3 covering referendums and broadcasting aspects.The manifesto on which the Government was elected in 1997 included three commitmentsregarding party funding:· to oblige political parties to declare the source of all donations above a minimum figure· to ban foreign funding of political parties· to ask the Committee on Standards in Public Life to consider how the funding of politicalparties should be regulated and reformedThe Committee, under the chairmanship of Lord Neill of Bladen, reported in October 1998.The Government’s subsequent White Paper included a draft Bill, which forms the basis of theprovisions in the Bill.The main provisions of the Bill relating to the control of donations are:· the publication of details of donations to political parties of £5,000 or more at national level,and £1,000 at local level· a ban on donations from outside the UK, from trust funds and from unknown sources· a requirement for shareholder approval for company donations to parties· requirements relating to party accounts and the reporting of donations· control of donations to third parties, individual party members and member associations· establishment of a Policy Development Fund, making grants available to political parties· a reduction in the maximum qualifying period for overseas voters to 10 yearsThis paper examines the relevant provisions and also looks at related issues:· party finance in general· the question of public funding for political parties, including financial assistance to parties inParliament and the new devolved bodies in Scotland, Northern Ireland and Wales· the case for and against tax relief on donations· the honours system
download PDF : RP00-2[1]