Bankrupt Labour Bankrolled by Unions

The figures published today by the Electoral Commission for the donations received by political parties between July and September demonstrate the continued reliance of the Labour Party on the Trades Unions for survival.

If private and corporate donations (cash and non-cash) to the parties are considered, Labour comes in third place behind UKIP and the Conservatives:

Conservative – £3,695,947
UKIP – £454,234
Labour – £413,774
Lib Dems – £350,645
The Co-Op Party – £289,998
BNP – £65,000
SNP – £39,029
Green – £12,030

In addition to the above however, Labour received the following donations from the big Trades Unions:

Unite – £818,366
Unison – £396,515
USDAW – £299,654
CWU – £246,544

Adding these Trades Union donations brings Labour’s total of donations received to £2,317,723.

The Electoral Commission also have published details of parties’ indebtedness and it sharply illustrates the desperate financial situation of the Labour Party:

Labour – £9,862,172
Conservative – £2,831,949
Jury Team – £519,046
Lib Dems – £488,344
SNP – £484,503

Thus four out of every five pounds received in donations by Labour came from one of the big Trades Unions. No other political party is recorded as having received donations from unions.

The size of Labour’s debt burden will also be a cause for concern. Not only will the party have to pay sizeable amounts in interest but debts will mature and have to be repaid over the next few years. It would seem that under Gordon Brown’s leadership the finances of the Labour Party were left in a similar position to that of the nation. Getting out of the hole will be very difficult for the party. They have many fewer MPs than before May and their Councillor base has been decimated over the last few years. The flow of donations from elected members into constituency parties will therefore be curtailed.

The Trades Unions must therefore be rubbing their hands with glee. They now have the leader they wanted and they know that they have the Labour Party over a barrel. Their contributions are even more vital to the party’s continued existence and its ability to fight election campaigns.

We know in Reading that Labour were short of funds in the last General Election from the article written by a campaign insider. I also have it from a reliable source that the loss of the additional allowances from Labour’s Lead Councillor roles is being keenly felt in some quarters.

I know what it is like trying to keep a local party functioning effectively and campaigning on a shoe-string as that is the situation that Reading Conservatives faced after 1997. It takes a long time to rebuild the support base and finances and achieve electoral success.

I suspect that Labour face a good number of years in the financial and electoral wilderness, while all the time their Trades Union paymasters demand policy favours in return for continued financial support!