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Sunday, April 15, 2012

Ed Miliband offers to cap union donations to Labour Party at £5,000

 The Tories reckon that Ed Miliband’s party funding intervention is a con, ‘a complete wheeze’ according to Grant Shapps, who appeared on Andrew Neil’s BBC Sunday Politics show earlier today. But should they really reject this offer? As I wrote earlier, Neil raised an objection to Shapps’ position. Here is the transcript of their exchange:

Last year a 15-month inquiry proposed a £10,000 cap on donations to end so-called cash-for-influence scandals, with the shortfall to be plugged via a £23 million-a-year taxpayer subsidy.
But Mr Miliband, who said the £50,000 limit proposed by Mr Cameron was too high, accepted that state funding was currently not an option.
Proposing an overall reduction in party spending he added: 'In the current economic circumstances I don't think [state funding] is practical but what I think needs to be done in the negotiations is to look at the existing money spent on politics.'
Unite said it backed Mr Miliband's proposals.
'Unite supports Ed Miliband's efforts to restore faith in politics, and is pleased that the vital link between Labour and millions of working people is valued and will be retained,' a spokesman said.

'The affiliation to the party is the most transparent money in politics. Now more than ever, it is something to be proud of.'

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