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Political Parties (Funding)

The Neill committee noted that the arguments for and against state funding were ““finely balanced””. The Phillips review concluded that there should be a degree of state funding, and presented proposals based on electoral support and the recruitment of members. We made good progress on three of the pillars outlined by Hayden Phillips in his draft agreement: on spending limits, on donation caps and on reform of the Electoral Commission. As the Prime Minister has said, we are yet to be persuaded of the case for a significant extension of state funding, but we recognise that it will be a source of continuing consultation. Notwithstanding the clear and partisan decision of the official Opposition to walk away from the Hayden Phillips talks, I very much hope that they will think again. In the Gracious Speech, we announced that we would produce proposals in respect of party funding and regulation. The case for a comprehensive and fair package is overwhelming. It is set out in the report by the Constitutional Affairs Committee, and in Sir Hayden Phillips's report and his later draft agreement. My right hon. Friend the Prime Minister expressed his backing for it at the weekend. A White Paper is currently being prepared; we shall publish it as soon as possible, and present legislation thereafter.