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The police investigations into party funding are getting increasingly serious:

"The Tories are facing the threat of prosecution over allegations that
they secretly banked a “soft” loan provided below bank rates in breach
of electoral laws. The party also received loans from other
supporters who did not expect them to be repaid as they would be
converted into donations — another potential breach of the law." –
The Sunday Times

The Conservatives have received up to 150 loans, and most of the people the police have interviewed so far have been Conservatives. A CCHQ spokesman blamed conflicting advice about what constitutes a commercial loan.

The pressure is increasing on Labour too, as it is revealed that they haven’t paid back £436,000 worth of interest to Levy’s secret donors:

"The police are expected to open a new front in the "cash-for-peerages"
affair and to ask why the party has failed to repay the interest it
owes to lenders, who include several millionaires personally nominated
by Tony Blair for seats in the Lords.
" – Independent on Sunday

The prospect of political parties being funded much more by taxpayers will seem increasingly tempting as a way to move on from this quagmire. David Cameron has reiterated his interest in more state funding again in an interview with Jasper Gerard of the Sunday Times.

If you have any ideas on how to counter the emerging self-serving consensus on state funding comment here.

Deputy Editor

28 comments for: Loan woes are not an excuse

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