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Political Parties (Funding)

The Electoral Commission looked into the matter and said that the checks were all right, whereas it has said that the latest Labour party debacle was all wrong, and that is why it has been passed to the police for investigation. I turn now to what we need in the future. It seems to me to be transparently obvious that caps on donations are only one side of the coin, and that we also need caps on expenditure. The third element that we must secure is stronger powers of scrutiny and investigation for the Electoral Commission. That is why the talks with Sir Hayden Phillips, in which I participated, are the firm ground on which all parties can stand. There is no other, and it is no good for each of us, separately, to set out our own prescription and expect that to pass any test of objectivity. The importance of Sir Hayden Phillips's proposals appeared to be recognised by the right hon. and learned Member for Rushcliffe (Mr. Clarke)—