Jack Straw accused of 'abuse of power' over election cash cuts

Jack Straw was accused of an 'atrocious abuse of power' last night as he unveiled plans to crush a multi-million pound Tory campaign in marginal seats.

The Justice Secretary said the Government would introduce tough limits on constituency spending from October with or without the Tories' agreement.

Candidates will be limited to spending £12,000 from the moment they start campaigning, which could be years before a General Election, rather than just in the final six weeks of the campaign as at present.

The move prompted a furore at Westminster, with cash-strapped Labour accused of changing the rules to enhance its election prospects.

For months, rattled Labour backbenchers have been pushing for a change in the law to help them take on candidates funded by Tory peer Lord Ashcroft.

Within electoral rules, he is targeting marginal seats where the outcome of the next election will be decided.

Mr Straw insisted he wanted to curtail the 'spending arms race' between the two main political parties.

Aides rejected claims the proposals, which will be policed by a beefed-up Electoral Commission, were 'partisan', pointing out that they would also limit Labour's use of union cash in marginal seats.

However, a controversial £10,000 a year 'spin budget' for sitting MPs to 'communicate with their constituents' will remain untouched – further strengthening the advantage for incumbents.

Mr Straw said he was ready for a 'debate' about a curb on donations.

An independent review has proposed a £50,000 cap on gifts from individuals and organisations, and aides to Mr Straw said he would like to see an even lower limit of £5,000 or £1,000.

But effectively kicking this into the long grass, he said that because any limit would involve enhanced state funding, 'we would not only have to have all the main parties with us, but the public as well'.

The Conservatives expressed outrage over the changes to spending by candidates.

Shadow Cabinet Office minister Francis Maude said: 'It is an atrocious abuse of power for the Government to force through restrictions on what Parliamentary candidates can spend from money they have raised privately while sitting MPs can spend ever more taxpayers' money on promoting themselves.'