Brown pledges ‘transparent’ political funding
Gordon Brown has pledged to reform party political funding.
As Labour attempts to draw a line under the cash for honours investigation, the prime minister promised to introduce a more transparent system for funding political parties.
The Crown Prosecution Service announced on Friday that no charges would be brought as a result of the 16-month investigation.
However, politicians from all parties admit the public’s faith in politics has been dented by the suggestion wealthy businessmen were nominated for peerages in return for substantial loans.
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Speaking during his first monthly press conference, Mr Brown said it was time to move towards a “better, more transparent and more acceptable funding system for the future.”
He called for cross party-consensus on funding changes, but said the government would be informed by the Hayden Phillips review.
In March, Sir Hayden proposed a public subsidy for political parties to make them less reliant on outside donations. Up to £22.9 million could be provided by tax payers, he suggested.
He also recommended a cap on individual donations, as well as incentives for parties to attract small donations.
Mr Brown said the government would consider implementing these proposals. The prime minister also wants to limit spending by parties before and between elections.
“Some of the proposals are about fundamental change in the way that political parties are funded,” he said.
Mr Brown told reporters: “I don’t think that there is anybody who has looked at the political system in Britain who is in any doubt that we could move to a better, more transparent and more acceptable political funding system for the future, but that is what the debate is about.”
Proposals for a cap on overall spending are significant as it was partly Labour’s desire not to be outspent by the Tories before the 2005 campaign that prompted Mr Blair to accept loans from prominent businessmen.
Mr Brown was quizzed by reporters today after it emerged eight of these donors where considered for honours in a draft nomination list, obtained by police during the inquiry.
Labour’s fundraising abilities have been dented by the investigation, further encouraging Mr Brown to seek reform. The latest accounts reveal the party is £24 million in debt and has failed to repay most of its donations from supporters.
A shortage of funds could prevent Mr Brown from calling an early general election, meaning he risks going to the polls without the benefit of being in a honeymoon period.
The cash for honours affair could also have implications for reform of the House of Lords, with reformers pointing out it is difficult to “buy” your way into an elected chamber.