Labour and the Tories must accept state funding

The political class is in denial over the need for democracy to pay for democracy.

The latest sleaze scandal is a symptom of a chronic malady which will not be cured until all parties accept that external financing of democracy inevitably opens them to the accusation of exchanging influence over policy for receipt of cash. Every continental and commonwealth parliament has gone through the same agony of political scandals arising from parties having to raise cash for core democratic activity from external sources. Every country has had to come to terms with the need for democracy to pay for democracy.

British political parties remain in denial on this issue. The Conservatives remain addicted to big donations from rich business chums. Labour depends on trade union cash and even if the cheques are an aggregate of small payments they allow a small number of union leaders to wield influence and have access.

In the past two decades, both parties have been rocked by allegations over cash for access and influence, or the undemocratic concept that appointment as a legislator may be connected to payment to political parties.

I have seen in so many other countries the same process of parties defending occult external financing and then, as scandal after scandal broke, coming round reluctantly to accept full democratic funding.

The Conservatives would benefit as people would no longer see the party as being the servant of the rich. Labour would benefit as the accusation that unions dictate candidates and policy would fall away. Wealthy businessmen and major trade unions would of course support the Tories and Labour, and campaign for causes and policies just as is the case in other countries. But the public would no longer believe that money-rich donors have undue influence.

I urged these measures after 1997 but failed to persuade Labour ministers. I put up papers to Robin Cook with whom I worked at the Foreign Office but despite Robin's commitment to radical reform he was too nervous of making the case for democracy paying for democracy. At the time, Labour was awash with external business donations even though the £1 million offered by Bernie Ecclestone marred Tony Blair's first term. That should have been a warning but Labour refused to embrace party funding reform. This denial ended with the disaster of the police investigation into the loans for peerages scandal that blackened the last years of Labour in office.

I tried to persuade Labour ministers to amend the seriously defective Political Parties, Elections and Referendums Bill to bring some extra money for policy work. It was an attempt to augment the already existing level of state funding available.

But Tony Blair and Gordon Brown (and to be fair most Labour ministers) were locked in denial on the need for more state funding. They did not want to provoke rows with trade unions and thought the cash from pro-Labour wealthy individuals would keep on flowing in.

Yesterday in the Commons, Francis Maude for the Conservatives proved that he, like his Labour predecessors, remains in denial on democracy paying for democracy as he continued to denounce the idea of state funding. Labour is enjoying the Tories' discomfiture but no Labour MP urged democracy paying for democracy in the exchanges in the Commons.

The most recent scandal is very damaging to David Cameron but Labour's current Schadenfreude is transitory. The only way this problem has been solved in other countries is full democratic, transparent funding for political party work. The rest of the world has learned that lesson. It is worrying that British politics remains in such denial.

Denis MacShane is MP for Rotherham and a former Europe minister. Follow him on Twitter: @denismacshane

David Cameron speaks at the Alzheimer's Society announcing more funding for research into dementia. Photograph: Getty Images.
Denis MacShane is MP for Rotherham and was a minister at Foreign and Commonwealth Office
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Theresa May’s stage-managed election campaign keeps the public at bay

Jeremy Corbyn’s approach may be chaotic, but at least it’s more authentic.

The worst part about running an election campaign for a politician? Having to meet the general public. Those ordinary folk can be a tricky lot, with their lack of regard for being on-message, and their pesky real-life concerns.

But it looks like Theresa May has decided to avoid this inconvenience altogether during this snap general election campaign, as it turns out her visit to Leeds last night was so stage-managed that she barely had to face the public.

Accusations have been whizzing around online that at a campaign event at the Shine building in Leeds, the Prime Minister spoke to a room full of guests invited by the party, rather than local people or people who work in the building’s office space.

The Telegraph’s Chris Hope tweeted a picture of the room in which May was addressing her audience yesterday evening a little before 7pm. He pointed out that, being in Leeds, she was in “Labour territory”:

But a few locals who spied this picture online claimed that the audience did not look like who you’d expect to see congregated at Shine – a grade II-listed Victorian school that has been renovated into a community project housing office space and meeting rooms.

“Ask why she didn’t meet any of the people at the business who work in that beautiful building. Everyone there was an invite-only Tory,” tweeted Rik Kendell, a Leeds-based developer and designer who says he works in the Shine building. “She didn’t arrive until we’d all left for the day. Everyone in the building past 6pm was invite-only . . . They seemed to seek out the most clinical corner for their PR photos. Such a beautiful building to work in.”

Other tweeters also found the snapshot jarring:

Shine’s founders have pointed out that they didn’t host or invite Theresa May – rather the party hired out the space for a private event: “All visitors pay for meeting space in Shine and we do not seek out, bid for, or otherwise host any political parties,” wrote managing director Dawn O'Keefe. The guestlist was not down to Shine, but to the Tory party.

The audience consisted of journalists and around 150 Tory activists, according to the Guardian. This was instead of employees from the 16 offices housed in the building. I have asked the Conservative Party for clarification of who was in the audience and whether it was invite-only and am awaiting its response.

Jeremy Corbyn accused May of “hiding from the public”, and local Labour MP Richard Burgon commented that, “like a medieval monarch, she simply briefly relocated her travelling court of admirers to town and then moved on without so much as a nod to the people she considers to be her lowly subjects”.

But it doesn’t look like the Tories’ painstaking stage-management is a fool-proof plan. Having uniform audiences of the party faithful on the campaign trail seems to be confusing the Prime Minister somewhat. During a visit to a (rather sparsely populated) factory in Clay Cross, Derbyshire, yesterday, she appeared to forget where exactly on the campaign trail she was:

The management of Corbyn’s campaign has also resulted in gaffes – but for opposite reasons. A slightly more chaotic approach has led to him facing the wrong way, with his back to the cameras.

Corbyn’s blunder is born out of his instinct to address the crowd rather than the cameras – May’s problem is the other way round. Both, however, seem far more comfortable talking to the party faithful, even if they are venturing out of safe seat territory.

Anoosh Chakelian is senior writer at the New Statesman.

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