Today’s Lesson
• In this lesson we will be looking how
Political Parties are funded
• We will discuss why certain elements of Party Funding may seem controversial
• Assess the views of the Main Parties on Party Funding
• Assess the impact of the reforms put in place to regulate party funding • Determine whether there is a case for STATE funding of Political Parties
Why are these men controversial?
Bernie Ecclestone, Asil Nadir, Lord Michael Ashcroft and Michael Brown
The same has been said about the Trade Unions who have contributed 59% of Labour funds under Gordon Brown but
81% under Ed Miliband (by
Spring 2012) – this has led to claims that Labour Policy has shifted leftwards
Context Information – Changing Basis of Party Funding
• Most Political Parties receive income in the form of membership subscriptions
• However, until the early 1990s, most of the Labour
Party’s funding came from fees paid by the Trade
Unions and other affiliated organisations
• The Conservative Party was (and arguably still is) said to be bankrolled by a few but wealthy donors with business interests
• With declining numbers of membership for all parties, finances have been adversely affected
• With the Labour Party attempting to reduce the influence of the unions within the Labour Party this too impacted on their finances
• This led to the party courting donations from wealthy individuals such as Bernie Ecclestone with the Conservatives courting Sir Paul Getty and Lord
Michael Ashcroft
Made a controversial £1m donation to the Labour Party in 1997 which may have prompted the delay in the introduction of the ban on tobacco advertising in
Formula 1 motor racing
Why is Party
Funding
Controversia l? Who has called for Reform?
Who has called for Reform?
Main Task
•
Using the laptops and page 89 (AS UK
Government and Politics), research the following key points about Campaign
Finance Reform:
1. Political Parties, Elections and Referendum
Act (PPERA) 2000
2. Political Parties and Elections Act (PPEA)
2009
3. The Phillips Report (2007)
•. For each one, get down the key features and its intended aims and objectives (what was the legislation trying to achieve?)
•. http:// news.bbc.co.uk/1/hi/uk_politics/6065322.s tm
- this article gives information about the problems between the 1st and 2nd pieces of legislation Key Features
Political Parties,
Elections and
Referendum Act
(PPERA) 2000
Political Parties and
Elections Act (PPEA)
2009
The Phillips Report
(2007)
Intended Aims
Problems?
These are the key features of the two major acts aimed at wiping away the controversies of Party Funding although loopholes have existed with ‘Long-Term loans at low interest rates’ being a frequent mechanism used
2011 Committee on Standards in Public Life report (‘The Kelly Committee’):
• In November 2011 the Committee on Standards on Public Life, chaired by
Sir Christopher Kelly, published a Report on "Political Party Finance. Ending the big donor culture". It is their 13th report - The report made five main recommendations: •
