Report suggests limit on Labour funding lifeline

Sir Hayden Phillips who is in charge of a review into party funding, is suggesting £50’000 limits on political party donations, including those from Trade Unions.

This is sure to be of huge concern to the Labour Party, who currently receive around £10.5 million a year from Trade Unions.

Of course the Government would have to endorse the proposals and put them into law, something I think they will be more than reluctant to do.

What is more likely to happen is that public funding of political parties should be introduced. We already know Labour are keen on this idea. So expect a donation tax to be introduced and the caps on Trade Unions to be ignored.

UPDATE: The BBC is now reporting Labour MP John McDonnell opposition to the idea. What a surprise considering he is a left-wing Labour MP. I'm not so sure about his belief Tony Blair supports the idea. Such is the concern over the suggestion that the Labour National Executive has called an emergency meeting for tomorrow.