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Labour is heading into the general election nearly £9 million in the red, latest figures have revealed.
MPs' fears that money as well as power are draining away from the party were underlined as it emerged that a combination of outstanding loans, fewer donations and pension liabilities had left it with a huge deficit.
With visibly fewer stalls at this year's conference, income from the annual gathering also appeared to have been hit as businesses and lobbyists drift towards the Conservatives. Charles Clarke, the former Cabinet minister, said recently that Labour's finances were so dire that raising cash for an election campaign seemed “almost impossible”. Fresh analysis of Labour's accounts highlight Mr Clarke's worries. Although the party is nominally in the black to the tune of £2.6 million, once a one-off VAT repayment and its outstanding loans are taken into account, its real balance stands at a deficit of £8,907,106.
Party finance chiefs have managed to get the deficit down from a record high of £41 million. General election co-ordinator Douglas Alexander warned delegates that finances were “constrained”. The party was £4 million in the black in 1998 and 2000 but the “cash for peerages” affair, followed by “donorgate”, appear to have led to a drying up of large donations from businessmen and Labour now relies increasingly on union funding.
Reader views (8)
Winston Churchill got it right many years ago.
"Socialism is a philosophy of failure, the creed of ignorance, and the gospel of envy, its inherent virtue is the equal sharing of misery."
It would be funny if it wasn't my life and my Country being destroyed.
- Roger, Surrey
Labour is bankrupt.
Politicians are liars, cheats & theives.
The country is sick to death of "professional politicians".
Perhaps this is the time to exclude political parties who are in debt from standing for election?
- Puxty1755, London UK
How are the mighty fallen!
- Rogan, Irving
Frank Home Counties - spot on.
- Dee Jay, Fleet Hampshire
Labour both morally and financially bankrupt! No surprise there then.
- Stuart, London
So much for "prudence" and "no boom and bust" - Labour cannot balance its own books, let alone the UK books which currently show a national debt of £1,400,000,000,000.00.
WHAT A GAGGLE OF PARASITES WE ARE LUMBERED WITH LOITERING WITH INTENT IN THE HOUSE OF CONMEN.
- Reuben Camara, Morecambe Compound, EUSSR
Labour Party = £9 million in debt.
UK = trillions in debt.
Socialism at it's finest.
- Frank, Home Counties, England.
Amazing that these utter parasites can still afford £3m for Ed Balls' Dept for Children,Schools and Families offices which includes such luxeries as a massage room and a prayer area for muslims.
- Stephen, London
