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Political Parties: Funding

My Lords, does the Minister agree that parties should have funding in elections that is broadly on a level playing field and that allowing very wealthy individuals to donate vast sums—in six or even seven figures—distorts the whole political process? Does he also agree that parties should be encouraged to obtain small donations from many people? I should add that I was a member of the Committee on Standards in Public Life—we researched and published our principal report in 1998. One method that we suggested then, which might have a number of virtues, would be something in the nature of a gift aid scheme for donations to political parties. Making modest donations to parties benefits the democratic system and it should be recognised that it does so. On the involvement of the tax system, that is already recognised in relation to inheritance tax, where donations to established political parties are tax exempt. Since inheritance tax is mainly paid by those who are supporters of the Conservative Party, would it not be fairer to extend similar tax relief to small payments such as membership subscription?