11 Apr 2012

Cross-party funding talks begin

Face-to-face talks on how to reform the way political parties are funded have begun, reveals Deputy Prime Minister Nick Clegg.

Face-to-face talks on how to reform the way political parties are funded have begun, reveals Deputy Prime Minister Nick Clegg. (Getty)

The issue of party funding was thrown back into the spotlight by last month’s claims that the then Tory Party treasurer Peter Cruddas was selling access to Prime Minister David Cameron.

Mr Cruddas resigned after being recorded by undercover Sunday Times reporters, apparently offering policy influence in return for donations.

Cabinet Office Minister Francis Maude and Conservative Party co-chairman Lord Andrew Feldman are leading the talks for the Tories, while ex-cabinet minister John Denham and former Labour Party general secretary and current whip Lord Ray Collins are negotiating for Labour.

Former chief secretary to the Treasury David Laws and party chief executive Tim Gordon are representing the Liberal Democrats.

According to the Cabinet Office, the six representatives were today due to agree ways of working, including whether to “request factual information from the Civil Service by ministerial agreement”.

Speaking at a speech in London on Wednesday, Mr Clegg said: “There are talks occurring today.

“I attended the first few minutes of it to launch it with representatives of the three main parties, thrashing out what I hope will be a deal on party funding.”

The talks are understood to be taking place at the Cabinet Office in Whitehall.

The Liberal Democrat leader said negotiations would explore suggestions from Sir Christopher Kelly, who investigated party funding following previous rows.

Mr Clegg added: “Party funding scandals have blighted all political parties over time, no party is purer than the driven snow.

“There is a blueprint for change from Sir Christopher Kelly and his panel.”

The main proposals set out in the Kelly findings include:

• a limit of £10,000 placed on donations from any individual or organisation.

• that the cap should apply to donations from all individuals and organisations, including trade unions.

• that the existing limits on campaign spending in the period before an election should be cut by the order of 15 per cent.

• It also controversially suggests taxpayer support for parties in elections.