2.1.3

UK Funding Reform

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Reforms to Party Funding

Controversies have led to proposals to reform party funding.

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Funding controversies

  • Controversies around party funding have come from a small number of large individual donations including the ‘Cash for Questions’ and Bernie Ecclestone affairs.
  • Controversies have led to the belief that individuals can buy access to, and influence over political decision makers.
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Regulations introduced: PPERA

  • One new regulation introduced was the Political Parties, Election and Referendums Act (PPERA) in 2000.
  • PPERA introduced party spending limits at general elections to £30,000 for each constituency.
  • PPERA also limits spending for elections to European Parliament and devolved bodies and says parties must make public any individual donations over £5,000.
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Regulations introduced: PPEA

  • Political Parties and Election Act (PPEA) was introduced in 2009.
  • PPEA enabled the Electoral Commission to investigate and fine parties who broke the rules of the PPERA.
  • PPEA also limits donations allowed from non-UK residents and reduces the amount at which donations need to be made public by parties.
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Have funding reforms worked?

  • Regulations have increased the transparency of party funding
  • But, there are still issues with funding and transparency:
    • Parties have encouraged supporters to give long-term ‘loans’ instead of donations to get around the regulations set out by the PPERA.
    • The main political parties still receive large donations from wealthy individuals - these donors have not been deterred.
  • Bigger reforms such as introducing state funding are unlikely, as they would come at the taxpayers' expense.

State Funding

State funding has been put forward as a new means of providing funding for political parties. The Phillips Report in 2007 suggested funding per voter or per member for each party.

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Current public funding

  • Current public funding exists through Short money, Cranborne money which is paid to opposition parties in the House of Lords, and Policy Development Grants.
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The case for state funding

  • State funding would remove the influence and access private donors have to political decision makers.
  • State funding gives politicians more time to serve the interests of their constituents rather than spending time seeking funding.
  • Minority parties could compete better if the funding gap between major and minor parties was smaller.
    • Greater funding for opposition parties would allow them to research policy and offer a strong alternative to the government, which is good for democracy.
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The case against state funding

  • Taxpayers might oppose funding parties they are opposed to, especially more radical parties.
  • In practice, it would be hard to work out how much each party should receive.
  • State funding will not solve the problem of parties having different levels of funding, as parties have different levels of membership to one another.
  • In a democracy and a free society, it could be argued that individuals who wish to donate money to a party be allowed to do so.

Jump to other topics

1Democracy & Participation

2Political Parties

3Electoral Systems

4Voting Behaviour & the Media

5Conservatism

6Liberalism

7Socialism

8The UK Constitution

9The UK Parliament

10The Prime Minister & the Executive

11Relationships Between Government Branches

12US Constitution & Federalism

13US Congress

14US Presidency

15US Supreme Court & Civil Rights

16US Democracy & Participation

17Comparing Democracies

18Feminism

19Nationalism

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