The review of funding political parties

Transparent and open funding - should there be any extra state funding?

Whatever changes are made the resulting system has to be transparent, auditable, and well-regulated.


The different roles performed by political parties

The various roles performed by political parties can be divided in many different ways, but simply can be split into representation, campaigning, and administration.

Representation

How they represent you, in Parliament, and also outside it, the contact elected representatives and parties have with you between elections.

Campaigning

How they try to get your vote and win seats at elections.

Administration

The important and necessary day-to-day running costs of the political parties, including the development of their long-term policies.

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Some suggestions for state funding options

If more state funding were to be allowed we would need to set the grounds on which parties become eligible. Here are some of the suggestions that have been put forward.

  • Matched funding
    When you make a donation the state matches it, up to a certain limit.
  • Membership
    Parties get funding based on the number of members.
  • Tax relief
    When you make a donation, the party can get the tax you paid on it back, like Gift Aid to charities.
  • Votes received
    The party would get money for each vote they received, above a minimum level. So the money would be closely linked to electoral success.
  • Seats gained
    The party would get money for each seat won, above a minimum level. Again the money would be closely linked to electoral success.
  • Tax returns
    When you fill in your tax return, tick a box and the money can either go to the party of your choice, or to a central fund from which it is distributed according to some other criteria.
  • Tick a box when you vote
    The POWER inquiry recommended that when you vote at a General Election, you should have another form that you can tick to send £3 a year to the party of your choice for the lifetime of the Parliament.

This list is not intended to be exhaustive, but just the outlines of some different ways of allocating any increase in state funding.

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We want your views -

Do you think there should be:


full state funding, and no donations allowed


no state funding, only funded by donations


or a mixture of state funding and donations?


Whatever view you've chosen, why do you think this?


If there is an increase in state funding, should this take the form of more cash, or more in kind funding, such as free mail for candidates?


Do you think any increase in state funding should be targeted to one of the areas of representation, campaigning, and administration, or alternatively should it not be allowed to be spent in one of these areas?


Should parties be free to do with it what they wish, as long as the system is transparent, auditable and well-regulated?


Do you favour any of the above state funding options, or combination of options, in particular?


Are there any other points you’d like to raise on this issue?


You are encouraged to provide your views on these questions to us by 31 July 2006.

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Page last updated: 21 Jul 2006