Gift aid ‘could help widen party donations’
By Alex Stevenson
Small donations to political parties should be given tax exemption through gift aid, a Labour backbencher has said.
Martin Linton made the call as he prepared to push the government on another party funding issue next Monday.
The Battersea MP tabled an amendment to the finance bill suggesting that tax relief should be given to those making a small-scale donation of perhaps £10.
He argued this would encourage reform of the party funding system by creating a greater incentive for a broader base for party funding, rather than the current reliance on a smaller number of bigger donors.
“This is part of our drive to carry on cleaning up politics,” he told politics.co.uk.
“We’re trying to encourage people to make smaller donations to political parties and at the same time discourage big multimillion pound donations from millionaires.”
Listen to the interview with Martin Linton in full:
Bequests to political parties already receive exemption from tax so there is a precedent for this. Gift aid would essentially mean diverting taxpayers’ money to fund political parties.
Mr Linton believes taking this step would be supported by both the Conservatives and Liberal Democrats, but regrets the fact his own party is less keen on the “tax exemption route” for increasing party funding from the state.
“I think it is much better to get some kind of increased funding stream available for the parties,” he continued.
“The political parties are all broke and scraping the barrel in terms of donations. And I think it’s very unhealthy asking millionaires for donations.
“They should be concentrating on small donors and this is the way to encourage them to do so.”
Mr Linton’s amendment was not selected for debate in the finance bill, meaning it will not – for now – be debated in the Commons.
It is only part of his wider agenda on party funding.
“This is the run-up to Monday, when we have the final reading of the political parties and elections bill,” he said.
“There is an amendment there which was passed in the Lords to deprive tax exiles of the right to make donations to political parties. That is something which we’re very much in favour of and I very much hope will be passed.”
