New Times,
New Thinking.

  1. Politics
20 August 2010

Labour on the verge of bankruptcy

John Prescott warns of possible financial meltdown as Labour faces debts of £20m.

By George Eaton

John Prescott, who is campaigning to be elected Labour treasurer, issues a stark warning about the state of the party’s finances in today’s Guardian:

The Labour Party stands on the verge of bankruptcy. We are more than £20m in debt, facing a long-term decline in membership and a crisis in funding.

We are only kept alive by the Herculean work of party staff and volunteers, trade union contributions, high-value donations and the goodwill of the Co-op bank.

This isn’t the first time Labour has faced a cash crisis in recent years. Before the election David Blunkett memorably admitted: “We are trying to be careful so we don’t end up bankrupt after the election if this all goes pear-shaped.”

Select and enter your email address Your weekly guide to the best writing on ideas, politics, books and culture every Saturday. The best way to sign up for The Saturday Read is via saturdayread.substack.com The New Statesman's quick and essential guide to the news and politics of the day. The best way to sign up for Morning Call is via morningcall.substack.com
Visit our privacy Policy for more information about our services, how Progressive Media Investments may use, process and share your personal data, including information on your rights in respect of your personal data and how you can unsubscribe from future marketing communications.
THANK YOU

Prescott also takes a sideswipe at Gordon Brown over the huge cost of the “election that never was”: “[T]he so-called ‘election that never was’, in 2007, cost the party £1.5m in preparation costs which could have been spent on funding the disastrous 2009 European and local elections, for which Labour ran no real campaign.”

It’ll be worth watching to see whether the parlous state of the party’s finances boosts David Miliband’s argument that Labour needs a leader who can attract cash-rich donors. Since the beginning of the campaign he has raised well over £300,000 but has sensibly chosen to contribute one-third of that total to a “fighting fund” for the party.

Content from our partners
Can green energy solutions deliver for nature and people?
"Why wouldn't you?" Joining the charge towards net zero
The road to clean power 2030