The review of funding political parties

15 May 2007

Funding of Political Parties

Inter-Party Talks to begin today

Talks between the three main political parties to reach agreement on measures to reform political party funding begin today under the chairmanship of Sir Hayden Phillips.

The inter-party talks are being undertaken to resolve the outstanding issues from the Review of the Funding of Political Parties published by Sir Hayden in March.  The process is scheduled to run until the end of June.

The party delegations will be led by

  • Conservative Party: Francis Maude MP
  • Labour Party: Jack Straw MP
  • Liberal Democrat Party: David Heath MP

In announcing the start of the talks, Sir Hayden said:

In my report, "Strengthening Democracy: Fair and Sustainable Funding of Political Parties", I explained that the main parties are in broad agreement on a number of issues but had not yet reached agreement on two in particular - the nature of a cap on donations, and spending limits. I believed then that an agreement could be reached on these issues through direct talks between the parties.

I was therefore encouraged that in responding to my report the three main parties agreed to talk to each other in order to resolve the outstanding issues.  Today's talks are the start of this new process.

Reaching agreement will, however, depend on the willingness of the parties to engage constructively with each other in order to find a common outcome.  That will take some determination, and some compromise on all sides.  But I do believe and I believe the parties share this view themselves that the prize of an agreed system of how political parties should be funded is both in their individual interests and in the wider interests of our democratic system.

I do not underestimate the task ahead. But there is a unique opportunity at this time, and I hope the parties seize it.  I have committed to make myself available until then to do all I can to facilitate the process.

I am, of course, conscious that this process will involve only the three main parties represented in Westminster.  I believe that this is the only practical way of reaching agreement on this issue.  Yet I will remain in contact with the other parties and, where appropriate, seek their views on particular issues.

Page last updated: 25 July 2007