New Labour - good news on the way!

Labour cash crisis could bankrupt party leaders

Senior officials in the Labour party, including Gordon Brown, could become personally liable for millions of pounds in debt unless new donors can be found within weeks, the Guardian has learned.

The party has five weeks to find £7.45m to pay off loans to banks and wealthy donors recruited by Lord Levy, Tony Blair's former chief fundraiser, or become insolvent. A further £6.2m will have to be repaid by Christmas - making £13.65m in all. The sum amounts to two-thirds of the party's annual income from donations.

The figures are a conservative estimate as they do not include interest that will also have to be paid. A Labour source said that although the total debt was listed as £17.8m on the Electoral Commission website, the true level, with interest, was nearer to £24m.

The possibility that party officials and members of its national executive committee could become liable is being taken seriously by union leaders, and has been underlined by the decision of equity fund chairman David Pitt-Watson not to accept the post as Labour's general secretary.

The party's financial crisis could be compounded this autumn. Three of the biggest unions, Unison, the Communications Workers Union and the GMB have tabled motions at their annual conferences next month calling for members to disaffiliate from Labour. If this goes ahead, Labour would lose £4m of its £19m a year in donations.
In full
Ironic isn't it?

Can't even manage their poxy party funds; yet we give our hard earned cash to them in taxes and NI contributions in order for them to care for the Nation.

Time this set a lying scummers was swapped for the next set.
They have been scrabbling away at this problem for well over a year and I can't see them getting out off it easily. With Levy gone and the need for disclosure, any new big money donor will stay well away.

I look forward to watching this develop with interest.
I think it was last year that I suggested buying the debt and calling it in.

Surely it shouldn't be too hard to find 240,000 people prepared to chip in £100 each?


Book Reviewer
It's a tricky problem they have there. I have the answer however. The party funding laws will soon be changed so that donors to the party, whether through loans or direct gifts will no longer have to declare their interests to either the membership, parliament or the British people.

The funds can be paid into a 'blind pot' in a Swiss numbered bank account, the payees of which will never be recorded. This way, politics will not be shamed by scandals regarding who donates what to whichever party for whatever reason.

For those who do donate unfeasably large sums to a party, the presentation of their bank teller receipts from the Swiss bank will guarantee them the payout of the favour they wish to buy. For example, if the owners of Northern Rock wish to gain exemption from the Financial Services Authority and their investigations, they need to take their donation receipt (quietly) to the head of the Zanu NL party, whereupon any investigations will be closed down in the 'national interest'.

There is prior history for this of course - this being the current situation whereby members of parliament will soon no longer have to provide evidence of what they have purchased for their second homes. They simply withdraw from tax coffers (or blind pot) up to £23,000 per annum on top of their £15,000 wage increase under a blanket secrecy clause.
EX_STAB said:
I think it was last year that I suggested buying the debt and calling it in.

Surely it shouldn't be too hard to find 240,000 people prepared to chip in £100 each?
You would be mad to buy the debt for its actual (or even perceived) value. Try 10p in the pound, that way you only need either 24, 000 people with £100 or 240, 000 people with £10!
the problem is the tory's are in no better state
lord "belizan marching powder" ashcroft" for example :(
People who give large amounts of cash to political parties seem are either odd or out for the big bucks :roll:
I'd much rather political parties got there cash off individual members from the general public than nutters and spivs :(
I think that they are going for the holy trinity of politics. They are already morally and intellectually bankrupt, so adding finacial bankruptcy to their portfolio makes it quite clear that this Governement is the worst ........ ever.

Yip basically if they been laibour cannot drum up support for their party its unlikely they are going to drum up funds for there cause?

Cannot help but laugh, but on the sad side when they hand over ownership to the other party they will inherit a lot of problems and debt :x
Hope it bankrupts the one eyed c*nt!. Can he be disqualified as PM if he is a bankrupt.

Wonder if he will tell Sarah its part of Global Economic Turmoil, like he tries to convince us.
Despite all the bluster, the Unions will bail them out.

But only at a price of course, so you can expect the return of Old Labour policies and the dreadful "Lurch to the Left" that all Labour governments go through in their last years.
Of course Gordon and cronies won't be personally liable. It's underwritten by the party members collectively. What's mine is mine and what's yours is mine.
This has put the cream on a good day for me, with a slight worry about them being unable to organise their own financies but claim to be able to manage the country.
Mmm.... let’s get this right, Run up lots of Debt that you obviously can’t repay.... that's fiscally competent eh?

You get the good news from the bank, but as you are in Government, you then put up a bill to review party funding but really it's a smoke screen to change or try to change the Political Party Funding rules so the public pick up the tab? And therefore get your Party out of the smelly....

But that’s Abuse of Public Office, fraud..... And probably a whole shed load of other potential offences …. Isn’t it?

The potential mess here makes the Cash for Peerage’s* thing look like a kids play ground sweety extortion racket … This Government have taken sleaze, underhanded operation, corruption and down right incompetence to a new level never before seen in UK Politics or most of the Western World for that matter....

Anyone called the Yard yet?

* IMHO they got away with that one, not through innocence but by obstructing the inquiry at every opportunity.

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