Tag Archives: peter hain

Cross-posted from The Wardman Wire:

The last year certainly hasn’t been a quiet one when it comes to controversies over how parties raise and spend money. Whilst the massive and long-running story of MPs’ expenses has rather overshadowed the previous stories, Royal Assent has just been given to the Political Parties and Elections Act 2009, which is intended to deal with the issues thrown up by those previous events.

New rules on political donations

The changes are intended both to reduce the administrative burden on volunteers such as local party treasurers but also to ensure that more information is revealed as to the actual sources of money received by parties or candidates.

Question over the actual origin of money given to parties have come up in the cases such as David Abrahams’s donations to Labour (where he provided money to intermediaries who then donated to Labour and whose names were those in the public donations records) and the Midlands Industrial Council (who took money from individuals and in turn made donations to Conservatives, but with the MIC being declared as the donor).

In future donations will have to be accompanied with a declaration as to the source of the money (dealing with the David Abrahams type situation). Unincorporated associations making donations of over £25,000 in a year will have to reveal the source of donations to themselves of more than £7,500 (dealing, at least in part, with the Midlands Industrial Council type situation, though that £7,500 is a fairly generous figure).

There has also been ongoing controversy over whether tax exiles and similar should be able to donate.