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Review to back party funding cap | Review to back party funding cap |
(about 5 hours later) | |
An independent review into political party funding will recommend a cap on individual donations, the BBC has learned. | An independent review into political party funding will recommend a cap on individual donations, the BBC has learned. |
The option is opposed by the Labour Party as a threat to its historic links with the trade unions. | The option is opposed by the Labour Party as a threat to its historic links with the trade unions. |
The review was set up by Tony Blair last year after the two main parties admitted raising secret loans before the 2005 general election. | The review was set up by Tony Blair last year after the two main parties admitted raising secret loans before the 2005 general election. |
Report author Sir Hayden Phillips will publish his findings on Thursday. | Report author Sir Hayden Phillips will publish his findings on Thursday. |
Sir Hayden, a former civil servant, was asked by the prime minister to examine whether agreement could be reached over changes to party funding. | Sir Hayden, a former civil servant, was asked by the prime minister to examine whether agreement could be reached over changes to party funding. |
'Party fury risked' | 'Party fury risked' |
Labour wants a small increase in state funding, stringent caps on spending and voluntary caps to be placed on donations by each party, which can reflect historic links with trade unions. | Labour wants a small increase in state funding, stringent caps on spending and voluntary caps to be placed on donations by each party, which can reflect historic links with trade unions. |
But BBC political correspondent James Hardy said Sir Hayden would "risk Labour fury" by recommending a legally binding limit on individual donations, whether they are from private donors, big business or trade unions. | |
An earlier memorandum from Sir Hayden - seen by the BBC in December - suggested a £500,000 limit on donations from organisations, including trade unions, falling to £50,000 in four years. | An earlier memorandum from Sir Hayden - seen by the BBC in December - suggested a £500,000 limit on donations from organisations, including trade unions, falling to £50,000 in four years. |
Our correspondent said the Conservatives are also likely to be disappointed by Sir Hayden's recommendation that limits should be set on donations at a national level and in individual constituencies. | Our correspondent said the Conservatives are also likely to be disappointed by Sir Hayden's recommendation that limits should be set on donations at a national level and in individual constituencies. |
In recent years Tory financier Lord Ashcroft has poured money into local parties to help win marginal seats, he said. | In recent years Tory financier Lord Ashcroft has poured money into local parties to help win marginal seats, he said. |
Hope for agreement | Hope for agreement |
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. |
Sources familiar with the report have told the BBC that Sir Hayden believes his findings will form the basis for an agreement between the two political parties. | Sources familiar with the report have told the BBC that Sir Hayden believes his findings will form the basis for an agreement between the two political parties. |
The funding review was ordered following allegations, denied by all concerned, that honours have been given to people in return for people lending money to political parties. | The funding review was ordered following allegations, denied by all concerned, that honours have been given to people in return for people lending money to political parties. |
It then emerged that ahead of the last election Labour was secretly lent nearly £14m and the Conservatives £16m. The Liberal Democrats said they borrowed £850,000 from three backers. | It then emerged that ahead of the last election Labour was secretly lent nearly £14m and the Conservatives £16m. The Liberal Democrats said they borrowed £850,000 from three backers. |
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