The Lib Dems' money woes are growing

Clegg's party might need a spell in opposition just to balance the books.

The Electoral Commission has published its accounts of political party income and expenditure. The table showing the financial state of health of the top 14 - the ones that get £250,000 or more - is available here.

The item that has made a few headlines is the drop in income for the Tories. The party's takings were down by 45 per cent on the previous year - now at the same level they were last at in 2003. That's wilderness income. Of course, the Conservative coffers will fill up again as an election approaches. They always do. But the fall in revenue might also reflect disquiet among big donors at negative publicity attached to the status of being seen to be a Cameron crony (especially after this incident) and irritation at the party leadership's willingness to indulge media bashing of bankers, high pay and fat-cattery.  The Telegraph's Ben Brogan wrote a column earlier this week suggesting donors were sniffing around Boris Johnson as a friendlier protege.

Labour also received less than last year but, thanks to the trade unions, the party's funding stream is a little more stable (although there is a political price to be paid for that dependency ... the subject of another much longer blog another time).

One thing that caught my eye in this year's accounts though was the perennial shortage of cash felt by the Lib Dems. They take in a fraction of the sums enjoyed by the big two and, unlike their rivals, spend more than they earn. One of the cruelties of coalition for the Lib Dems is that power has not suddenly opened up new exciting financing opportunities. Joining the governing big league has not granted entry to some exclusive high rolling donors club. Meanwhile, the party has lost the "short money" made available by the state to official opposition parties. And to make matters worse, Lib Dem councillors traditionally chip in around 10 per cent of their allowances to help fund the party. So the massacres in local elections in recent years have put a further squeeze on income. The Lib Dems, in other words, are utterly broke.

One senior Labour figure recently suggested to me that this would ultimately be the factor that breaks the coalition. The Lib Dems, this theory goes, will have to quit the government a year or so before an election so they can get their short money back. Without it they simply wouldn't be able to mount a campaign. Now that could be spite and mischief from the enemy camp (the shadow cabinet figure involved is no admirer of the Cleggists) but senior Lib Dems themselves don't deny privately that they have serious money woes. Maybe staying in government to the very bitter end will prove a luxury they can't afford.

Entering government has cost Clegg's party money as well as votes. Photograph: Getty Images

Rafael Behr is political columnist at the Guardian and former political editor of the New Statesman

Photo: Getty
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Brexit could destroy our NHS – and it would be the government's own fault

Without EU citizens, the health service will be short of 20,000 nurses in a decade.

Aneurin Bevan once said: "Illness is neither an indulgence for which people have to pay, nor an offence for which they should be penalised, but a misfortune, the cost of which should be shared by the community."

And so, in 1948, the National Health Service was established. But today, the service itself seems to be on life support and stumbling towards a final and fatal collapse.

It is no secret that for years the NHS has been neglected and underfunded by the government. But Brexit is doing the NHS no favours either.

In addition to the promise of £350m to our NHS every week, Brexit campaigners shamefully portrayed immigrants, in many ways, as as a burden. This is quite simply not the case, as statistics have shown how Britain has benefited quite significantly from mass EU migration. The NHS, again, profited from large swathes of European recruitment.

We are already suffering an overwhelming downturn in staffing applications from EU/EAA countries due to the uncertainty that Brexit is already causing. If the migration of nurses from EEA countries stopped completely, the Department of Health predicts the UK would have a shortage of 20,000 nurses by 2025/26. Some hospitals have significantly larger numbers of EU workers than others, such as Royal Brompton in London, where one in five workers is from the EU/EAA. How will this be accounted for? 

Britain’s solid pharmaceutical industry – which plays an integral part in the NHS and our everyday lives – is also at risk from Brexit.

London is the current home of the highly prized EU regulatory body, the European Medicine Agency, which was won by John Major in 1994 after the ratification of the Maastricht Treaty.

The EMA is tasked with ensuring that all medicines available on the EU market are safe, effective and of high quality. The UK’s relationship with the EMA is unquestionably vital to the functioning of the NHS.

As well as delivering 900 highly skilled jobs of its own, the EMA is associated with 1,299 QPPV’s (qualified person for pharmacovigilance). Various subcontractors, research organisations and drug companies have settled in London to be close to the regulatory process.

The government may not be able to prevent the removal of the EMA, but it is entirely in its power to retain EU medical staff. 

Yet Theresa May has failed to reassure EU citizens, with her offer to them falling short of continuation of rights. Is it any wonder that 47 per cent of highly skilled workers from the EU are considering leaving the UK in the next five years?

During the election, May failed to declare how she plans to increase the number of future homegrown nurses or how she will protect our current brilliant crop of European nurses – amounting to around 30,000 roles.

A compromise in the form of an EFTA arrangement would lessen the damage Brexit is going to cause to every single facet of our NHS. Yet the government's rhetoric going into the election was "no deal is better than a bad deal". 

Whatever is negotiated with the EU over the coming years, the NHS faces an uncertain and perilous future. The government needs to act now, before the larger inevitable disruptions of Brexit kick in, if it is to restore stability and efficiency to the health service.

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