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Straw set to curb party spending Straw proposes party spending cut
(40 minutes later)
Justice Secretary Jack Straw is unveiling plans to "end the arms race" in election spending by placing a cap on funding during campaigns. Justice Secretary Jack Straw has called for an end to the "damaging arms race" in election spending with proposals for a curb on funding during campaigns.
The move is likely to be seen as an attempt to limit the influence of major donors, such as the wealthy Conservative backer Lord Ashcroft. He intends to introduce a Bill before the summer recess to reform the Electoral Commission and place more controls on candidates' spending.
It follows Sir Hayden Phillips' inquiry into the future of party funding following the cash-for-honours row. It follows Sir Hayden Phillips' inquiry into the future of party funding in the wake of the cash-for-honours row.
Mr Straw is outlining the proposals in a statement to MPs. Tory Francis Maude said union donations to Labour was preventing reform.
The curbs, contained in a white paper, are likely to limit the influence of major cash donors in bankrolling constituencies throughout the rest of a parliament. Mr Straw said legislation could only be effective with the support of all parties and members of the public.
Talks break down 'Undue patronage'
The plans, contained in a white paper, would build on Sir Hayden's proposals, he said.
"It's excessive spending by parties and candidates that gives rise to the wider problems with party finance that we see today," he told MPs.
The two biggest parties - Labour and the Conservatives - spent £90m in the 12 months before the 2005 general election, up from £65m in the 12 months before the 2001 poll, he said.
"In the interests of democracy ... stop this damaging arms race," he said.
Mr Maude, the shadow Cabinet Office minister, said he agreed party funding reform was "very much needed in order to restore trust in our politics to deal with the perception that large donations, whether by individuals or organisations can buy undue influence or patronage".
Lord Ashcroft
However, he argued that 92% of Labour's income was from the unions.
"It is precisely Labour's dependence on these unions bosses and the big donor culture that's preventing the reform that our politics desperately needs," he said.
The move to cap donations is likely to be seen as an attempt to limit the influence of major donors, such as the wealthy Conservative backer Lord Ashcroft.
Union donations may also be included in the spending limits, which is likely to prove unpopular with Labour backbenchers.Union donations may also be included in the spending limits, which is likely to prove unpopular with Labour backbenchers.
However, the level of the likely cap is not expected to be published in the white paper.
The proposals follow 18 months of cross-party talks which stalled in October, amid failure to agree on a raft of recommendations in a review of party funding by Sir Hayden, a former civil servant.The proposals follow 18 months of cross-party talks which stalled in October, amid failure to agree on a raft of recommendations in a review of party funding by Sir Hayden, a former civil servant.
The Tories said trade union donations should be included within a limit on donations while Labour wanted an end to the use of Lord Ashcroft's millions being targeted on marginal seats.The Tories said trade union donations should be included within a limit on donations while Labour wanted an end to the use of Lord Ashcroft's millions being targeted on marginal seats.
In December, Prime Minister Gordon Brown pledged to push through the reforms, following revelations that gifts of more than £650,000 had been given to Labour by businessman David Abrahams using proxy donors.In December, Prime Minister Gordon Brown pledged to push through the reforms, following revelations that gifts of more than £650,000 had been given to Labour by businessman David Abrahams using proxy donors.
Mr Brown said Sir Hayden's proposals, which include a £50,000 cap on individual donations, provided a comprehensive framework for reform.Mr Brown said Sir Hayden's proposals, which include a £50,000 cap on individual donations, provided a comprehensive framework for reform.
He stressed everything was up for negotiation, including a possible extension of public funding - although he acknowledged that was likely to be controversial with voters.He stressed everything was up for negotiation, including a possible extension of public funding - although he acknowledged that was likely to be controversial with voters.