Ed Miliband’s party reforms have been welcomed by most in Labour as a chance to make the party more transparent and democratic, and to build a mass movement. But the implications for funding continue to cause much anxiety at Brewer’s Green. The decision to require trade unionists to opt into donating to the party, rather than having their payments automatically transferred by general secretaries, will cost Labour at least £4m (if half of the current 2.7 million levy-payers opt-in) and as much as £7m (if 10 per cent do). While some of the shortfall will be made up through large one-off donations by unions, there is likely to be a significant net cost. The understandable concern among many at party HQ (particularly if Labour wins and loses millions in “short money” – the state funding provided to opposition parties) is that their jobs are on the line.
In an interview in the Times yesterday, Lord Levy, who served as Tony Blair’s former chief fundraiser, said Labour had no choice but to seek out large private donors: “Does Labour want to do it? I don’t think they’ve got any option. Is it something Ed Miliband is in love with? No, I don’t think it is. Will he have to do it? Yes, I think he will.”
Content from our partners
