19 October 2006
Read our press release announcing the publication of the Review's interim assessment:
Interim assessment published today
Sir Hayden Phillips today published an interim assessment of the work his Review has done so far on the funding of political parties.
The Prime Minister asked Sir Hayden in March to review the funding of political parties, to try to secure as much agreement as possible between the parties, and to report by the end of the year.
Sir Hayden said:
"I am publishing today an interim assessment of the work I have done so far on party political funding, which sets out the main issues as they appear to me; and the choices that face the public and political parties.
"I need to hear, and the parties need to hear, informed public reaction. I hope in considering the issues involved people will bear in mind four points.
"First, despite cynicism about and disenchantment with party politics political parties are of central importance to the quality of leadership, the prosperity and the reputation of our country. The point of party politics is a competition to serve the public interest.
"Second, despite recent controversies, politics in this country has historically, and in international terms, been remarkably free of corruption and abuse.
"Third, the way parties are funded, and how that funding is regulated, can help to diminish cynicism and restore confidence if it can play a part in encouraging better engagement between parties and voters over time.
"Fourth, as members of the public we cannot have it both ways. Party politics costs. While parties can reduce the amount they spend, they will still need to get some money from somewhere, whether from donations or public funds, or a mixture (as now) of both. We cannot expect to have a vibrant, healthy democracy for nothing. We must recognise this in considering any further controls on how parties can raise funds.
"Producing a sufficient measure of agreement between the political parties to provide a consensus will not be easy but it is not impossible, and we have now the best chance of securing it for many years. To achieve this will require political will. To make it of value will require public support.
"The interim assessment does not contain recommendations, and should not be taken as a statement of what I feel is the best solution. It simply seeks to explore the different possibilities."
The assessment contains four broad scenarios, which cover most of the key issues. These are not discrete options from which a choice must be made, but illustrate the nature of the choices and the arguments involved. These are presented in terms of increasing degrees of change over the present arrangements. They are:
- Scenario 1: Minimal change: including some small changes to make the current system work more effectively;
- Scenario 2: Increased transparency and greater expenditure control: whether to provide more information about who funds parties, and reducing the amount parties can spend on campaigning at general elections or more widely;
- Scenario 3: Cap on donations: whether to set a limit on the amount people can donate to political parties; and
- Scenario 4: Greater levels of public funding: whether to provide more support for political parties through public funding, whether through a general subsidy, a targeted subsidy, or an incentive scheme such as matched funding.
HP-003-06
Page last updated: 19 December 2006