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| MPs urge political donation cap | MPs urge political donation cap |
| (10 minutes later) | |
| Political donations - and the amount parties are allowed to spend - should be limited, a committee of MPs says. | Political donations - and the amount parties are allowed to spend - should be limited, a committee of MPs says. |
| The Constitutional Affairs Committee says limits should be placed on donations, whether from individuals, companies or trade unions. | |
| If parties agreed to such measures to reform the current "unstable" system, then they would receive "substantially increased state funding", the MPs said. | |
| And only loans from UK financial bodies at commercial rates should be allowed. | |
| The committee said the current party funding system damaged public confidence in politics. | |
| If the parties did not agree to the voluntary limits but still expected more state funding "voters will conclude that the parties are voting to give themselves more money without removing dependence on other paymasters", it said. | |
| I have felt for years that the current free-for-all, in which a small number of trade unions and big donors are the parties' paymasters, should not be allowed to continue Andrew Tyrie, MP | I have felt for years that the current free-for-all, in which a small number of trade unions and big donors are the parties' paymasters, should not be allowed to continue Andrew Tyrie, MP |
| The committee report outlined a two-stage approach as it "recognises that such radical changes cannot be achieved overnight". | The committee report outlined a two-stage approach as it "recognises that such radical changes cannot be achieved overnight". |
| Ahead of the "substantial" state funding increase, a "modest" increase would accompany a lower national cap on spending and a "voluntarily agreed binding framework for limited donations". | Ahead of the "substantial" state funding increase, a "modest" increase would accompany a lower national cap on spending and a "voluntarily agreed binding framework for limited donations". |
| There should also be tax relief and matched funding "to encourage small donations". | There should also be tax relief and matched funding "to encourage small donations". |
| It called for reform of the Electoral Commission, such as appointing a minority of board members with experience in politics. | It called for reform of the Electoral Commission, such as appointing a minority of board members with experience in politics. |
| Committee chairman Alan Beith said change would be difficult but was vital. | Committee chairman Alan Beith said change would be difficult but was vital. |
| "Parties are an essential part of democracy, and their activities inevitably cost money. | "Parties are an essential part of democracy, and their activities inevitably cost money. |
| "If the taxpayer is to provide more of the money, it will need to be clear that state funding is used to achieve cleaner and healthier politics, without the fear that influence can be bought by big donations." | "If the taxpayer is to provide more of the money, it will need to be clear that state funding is used to achieve cleaner and healthier politics, without the fear that influence can be bought by big donations." |
| As police investigate allegations of party donations made in exchange for honours, Labour committee member Alan Whitehead, said the recommendations provided "early moves towards greater transparency". | As police investigate allegations of party donations made in exchange for honours, Labour committee member Alan Whitehead, said the recommendations provided "early moves towards greater transparency". |
| The Labour Party has already been angered by the idea of limiting donations as it would endanger their funding - and historic links with - trade unions. | The Labour Party has already been angered by the idea of limiting donations as it would endanger their funding - and historic links with - trade unions. |
| Public confidence | Public confidence |
| "The committee's enquiry clearly establishes just how important political parties are to our system of democracy and yet how the present unstable methods of funding them has the potential to undermine public confidence in their role in the process," Mr Whitehead said. | "The committee's enquiry clearly establishes just how important political parties are to our system of democracy and yet how the present unstable methods of funding them has the potential to undermine public confidence in their role in the process," Mr Whitehead said. |
| "An agreed reduction of donation levels and the enhancement of fair state funding will move a resolution forward. | "An agreed reduction of donation levels and the enhancement of fair state funding will move a resolution forward. |
| "At present there is a big question mark hanging over the future of Britain's political parties - the committee's report provides, I hope, some of the answers." | "At present there is a big question mark hanging over the future of Britain's political parties - the committee's report provides, I hope, some of the answers." |
| Labour wants a small increase in state funding, stringent caps on spending and voluntary caps to be placed on donations by each party. | Labour wants a small increase in state funding, stringent caps on spending and voluntary caps to be placed on donations by each party. |
| The Tories have called for a large increase in state funding for all parties with more than two Commons seats, a cap of £50,000 on all donations, the phasing out of corporate donations - including from trade unions, and tax relief for donations. | The Tories have called for a large increase in state funding for all parties with more than two Commons seats, a cap of £50,000 on all donations, the phasing out of corporate donations - including from trade unions, and tax relief for donations. |
| 'Fresh air' | 'Fresh air' |
| Conservative MP Andrew Tyrie, a committee member, called the report a "breath of fresh air". | Conservative MP Andrew Tyrie, a committee member, called the report a "breath of fresh air". |
| "I have felt for years that the current free-for-all, in which a small number of trade unions and big donors are the parties' paymasters, should not be allowed to continue. "The electorate believe that the big donors buy influence, access and honours - no wonder, as I have argued, they have concluded that party funding stinks." | "I have felt for years that the current free-for-all, in which a small number of trade unions and big donors are the parties' paymasters, should not be allowed to continue. "The electorate believe that the big donors buy influence, access and honours - no wonder, as I have argued, they have concluded that party funding stinks." |
| The Lib Dems want limited state funding for parties, national caps on annual donations and a lower cap on general election spending. | The Lib Dems want limited state funding for parties, national caps on annual donations and a lower cap on general election spending. |
| The committee report comes before the end of a government review of party funding, headed by Sir Hayden Phillips, which is to publish its recommendations in January. | The committee report comes before the end of a government review of party funding, headed by Sir Hayden Phillips, which is to publish its recommendations in January. |
| The review was prompted by the cash-for-honours row, which followed revelations that the three main parties had received large loans ahead of the 2005 General Election. | The review was prompted by the cash-for-honours row, which followed revelations that the three main parties had received large loans ahead of the 2005 General Election. |