Labour orders its MPs to pay 2,200 each to help stave off party's debt crisis

The Labour Party is squeezing its MPs
for money to stave off an imminent
financial crisis.

MPs this week received letters
demanding cheques for up to £2,200
each in personal contributions.

Although compulsory 'donations' are not new, MPs claim they are being pressed harder because of massive debts run up by Tony Blair and fundraiser Lord Levy to pay for the 2005 general election.

Senior MP Austin Mitchell commented: 'It’s called ‘arrears’ for 2008/09.

'But we’re only two months into that. They must be collecting all they can to
pay off our £24 million short-term debt.

'So we’re going to be dunned because
Tony and Levy put us into a financial black hole. What a mess.'

A Labour spokesman confirmed that
letters had been sent out but denied that
the levy -equivalent to two per cent of salary -had been increased.

It said Mr Mitchell was sent a higher demand because he had fallen behind on paying last year’s levy. But writing on his website diary, the Great Grimsby MP said some backbenchers wanted to bale out their local branches rather than the national HQ:  'We tried to give MP donations to our local parties.

'With declining membership and so few councillors they’re bankrupt too. Our first priority is to help them.'

Labour currently owes over £17 million to private lenders and banks, according to the most recent official figures.

Some £7.45 million is due to be repaid within a month. At the same time, trade union leaders have intervened by demanding changes in government policy in return for their own donations.

Figures from the Electoral Commission show that 90 per cent of Labour’s income is now from the unions, making the party heavily dependent on union support.

Derek Simpson, the joint general secretary of Unite, called for union-friendly policies, saying: 'We’ll be using our influence as Labour’s biggest financial supporter.'