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Party funding talks 'suspended' Parties' funding talks suspended
(40 minutes later)
Talks on funding political parties have effectively broken down after 18 months of negotiations, it has emerged.Talks on funding political parties have effectively broken down after 18 months of negotiations, it has emerged.
The Conservatives and Labour have been unable to agree on setting limits on campaign spending and on donations.The Conservatives and Labour have been unable to agree on setting limits on campaign spending and on donations.
The Tories said trade union donations should be included within a £50,000 limit on donations from individuals and organisations.The Tories said trade union donations should be included within a £50,000 limit on donations from individuals and organisations.
Labour wanted an end to the use of Tory Lord Ashcroft's millions being targeted on marginal Labour/Lib Dem seats.Labour wanted an end to the use of Tory Lord Ashcroft's millions being targeted on marginal Labour/Lib Dem seats.
Tory shadow Cabinet Office minister Francis Maude described the breakdown of talks as "an historic missed opportunity".
'Brick wall'
"Eighteen months ago we put forward really radical proposals that would really clean up party funding and start to restore the public's trust in the political process and party funding," he told the BBC.
It appears that the Labour party is still over a barrel, held there by the trade union barons Francis MaudeConservative Party
"But I'm afraid we've come up against an absolute brick wall in the face of the Labour Party's refusal to make substantive moves on union funding.
"It appears that the Labour Party is still over a barrel, held there by the trade union barons. And they were willing to accept a cap on all donations except the bulk of the donations made by trade unions."
But, he added: "We stand ready, at a moment's notice, to reengage in the discussions if there is some movement."
We greatly regret that these talks have been suspended as a result of the Conservative Party's unwillingness to negotiate on a draft agreement Jack StrawJustice Secretary
Justice Secretary Jack Straw, who has been heading the negotiations for Labour, claimed Tory leader David Cameron had been "unwilling to negotiate".
"We greatly regret that these talks have been suspended as a result of the Conservative Party's unwillingness to negotiate on a draft agreement.
"We had understood that all parties had thought in good faith that this draft agreement was the basis of a comprehensive settlement.
"We will now take time to reflect on next steps."
Sir Haydn Phillips, who chaired the talks, said he would be publishing the draft agreement that had been put to the two parties in August, but on which they later failed to agree.
Public interest
In a statement, he said: "I said at the outset of these talks that I believed that a consensus between the parties on future reform was both desirable and possible.
"Yet, despite progress on a number of issues, it became clear at the fifth session of talks held today that the parties would not be able to arrive at an agreement on an overall package of reform at present.
"I remain convinced that an agreement to reform party funding would be in the general public interest and I hope that all possible efforts will be made to achieve some consensus on a comprehensive package of reforms."