October 15, 2007
Battle looms on Tory funding ‘loophole’
By Chris Adams
Gordon Brown’s big retreat on the general election has left the Labour party in a hole.
How, with its desperately squeezed finances, can Labour hope to take the fight to a rejuvenated Conservative opposition in 2009 - particularly as Tory candidates will be burning millions of pounds in campaign funding from Lord Ashcroft, their biggest bankroller? It is the Ashcroft millions that most worry Labour MPs in vulnerable marginals, not the apparent lack of policy ideas in Downing Street or even Brown’s brooding image and newly acquired reputation for “spin”.
So worried are they that several tackled the prime minister head-on over the issue at a backroom meeting last week. And, today, there are reports that Mr Brown is ready to act.
The problem centres on Ashcroft’s use of a “loophole” in the law that allows wealthy donors to provide uncapped campaign funds between general election campaigns. Labour wants the rules changed and is hoping a review of party funding by Sir Hayden Phillips could recommend the law be tightened.
There is no sign of a cross-party deal, though, something Tony Blair had said was needed. The Tories are digging in against a permanent spending cap, while Labour has rejected their demand that it break its financial links with the trade unions.
The betting now is that the new prime minister, who has shown himself opportunist enough to steal Tory tax policies, will try to force the issue and rush legislation through the Commons to close the Ashcroft loophole.
His spokesman would only say today that the review was “ongoing”. But pressure within Labour is building. I would expect a conveniently helpful report from Sir Hayden, a speedy bill and a big fight in the Lords as the Tories mobilise against it.
