| Say no to state funding |
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| Written by Tom Clougherty | |
| Monday, 05 November 2007 | |
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The government is expected to signal its intention to change the rules on political party funding in today's Queen's speech. The push for reform started during the loans for honours scandal. Sir Hayden Phillips, the man tasked with brokering a deal on party funding, proposed that the political parties accept a £50,000 cap on donations and loans from individuals in return for increased state funding. Talks broke down when Labour refused to have the cap applied to money from trade unions. Despite the impasse, Gordon Brown is said to be coming under pressure from Labour MPs to push ahead with changes – mostly thanks to the efforts of Conservative businessman Lord Ashcroft's 'target-seats campaign', which channels funding directly to local parties. Yesterday though, The Times revealed that the unions donated "twice as much to local parties before the last election" as Ashcroft. The Conservatives add that incumbent MPs have an in-built advantage, making use of their 'communications allowance' for electoral purposes (something Ruth Kelly, the Transport Secretary, was told off for over the weekend). It's all a bit of a muddle. State funding, however, will only make matters worse. Because it is calculated according votes cast for the various parties, it entrenches the status quo and bolsters incumbents. The more votes you get, the more taxpayer funding you receive. That, surely, is not good for democracy. State funding also insulates political parties from the public. Without having to rely on the grassroots and private donors for money, political parties are free to ignore them – furthering the already troubling disconnect between politicians and voters. Thirdly, state funding would mean taxpayers' money going to unpalatable outfits like the BNP or Respect. Here's a much simpler solution to the whole problem. Get rid of state funding. Abolish the communications allowance (MPs: nobody wants your newsletter anyway!). Then let political parties raise as much money as they want, from whomever they want. And let them spend it as they wish. Just insist on absolute transparency every step of the way. Political parties should be treated like every other industry – survive in the free market, or do something else.
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