Existing state funding - what political parties are already entitled to
Some people are opposed to state funding of political parties. They do not wish to see 'their' money apparently benefiting parties they disagree with. Others have said that competition for funding is healthy for democracy, arguing that parties should not depend on money from the state.
But some state funding already exists in the UK, as it also does in other democracies such as Canada, Australia, New Zealand, Germany, Sweden and others, to a greater or lesser degree. Below are a number of ways in which state assistance is currently provided, together with a brief overview of the reasons behind such funding.
Short money
This money is provided to opposition parties in the House of Commons to help them in their Parliamentary duties.
Short money is provided to opposition parties represented in the House of Commons by two or more sitting MPs (that is, MPs who have sworn the Oath of Allegiance to the Queen), or a party with one MP and more than 150,000 votes at the previous general election.
It was introduced in 1975 on the suggestion of Edward Short, from whom it takes its name, and has three components.
- funding to assist an opposition party in carrying out its Parliamentary business;
- funding for the opposition parties' travel and associated expenses; and
- funding for the running costs of the Leader of the Opposition's office.
It is not available to the Government of the day. The Government can draw on the resources of the state, including the use of the Civil Service, to undertake its accountability to Parliament.
In the financial year 2005-2006, the Conservative Party received over £4 million, including the travel and associated expenses and the running costs of the Leader of the Opposition's office, and the Liberal Democrats received around £1.5 million, although they receive no money in relation to the running of the office of their leader. Other parties with representation at Westminster received lesser amounts, dependent on votes cast and seats won.
Sinn Fein, although not eligible for Short Money as their MPs do not swear the Oath, receives money analogous to Short Money in order to help its MPs undertake their representative business.
Equivalent funding schemes exist for parties represented in the Scottish Parliament, the National Assembly for Wales and the Northern Ireland Assembly.
Cranborne Money
A similar scheme for opposition parties exists in the House of Lords. Its called Cranborne Money, named after the then Leader of the House of Lords, Viscount Cranborne, and was introduced in 1996. The money is paid for similar reasons as the Short Money in the Commons, that is, to support opposition parties in their Parliamentary business.
In 2005-2006 the Conservatives received around £425,000, The Liberal Democrats around £210,000, and the Crossbenchers around £38,000.
Policy Development Grants
Policy Development Grants are specifically provided to enable parties to develop their long-term policies for inclusion in their manifestos, and has been provided since 2002.
A fund of £2 million a year is distributed among political parties with two or more sitting MPs. It is divided according to a complex formula which seeks to benefit all eligible parties. It is divided equally among parties contesting the same area. In Great Britain the Conservatives, Labour and Liberal Democrats receive the same amount of money, approximately £458,000. In Northern Ireland the eligible parties there receive the same amount of money, approximately £155,000. The Scottish National Party receive approximately £162,000 and Plaid Cymru approximately £151,000.
Indirect state funding
In addition there are some activities related to standing for election that are paid for by the state.
Party Political Broadcasts
Political parties do not have to pay for the air time they obtain for party political broadcasts. Party political broadcasts are available to all parties that stand candidates in approximately 1/6th of the contested seats.
It has been estimated, that if the parties had to buy advertising space at commercial rates, their value is in the region of £68 million for an election year, and £16 million in a non-election year.
(Andrew Tyrie, quoted in Electoral Commission Background Paper, The Funding of Political Parties, May 2003)
Freepost at elections and use of meeting rooms
Candidates are entitled to free postage for one election mailing to each elector in the constituency. This applies to elections to devolved bodies and the European Parliament as well as General Elections. It does not apply to local government elections in Great Britain although it does apply to local elections in Northern Ireland.
For General Elections the total cost of this freepost is over £20 million.
Candidates are also entitled to the free use of public meeting rooms, e.g., schools, town halls, for all elections in Great Britain, although this does not apply to any elections in Northern Ireland.
Please go to the transparent and open funding section
Page last updated: 21 Jul 2006