News releases

Sixteen political parties registered in Great Britain reported receiving £26.3 million in donations between 1 April and 30 June 2010, according to new figures published by the Electoral Commission, the independent party funding watchdog.

Total donations reported in the second quarter of 2010, a period that included the UK Parliamentary general election, are the highest on record. This is despite changes to legislation that mean that, since 1 January 2010, the threshold at which parties have to report donations has risen.

The next highest quarter was January to March 2005, just prior to the 2005 UK general election, when political parties reported receiving just under £20.6 million in donations.

During the second quarter of 2010, five parties also received payments from public funds totalling just over £1 million.

As at 30 June 2010, the total loans entered into by parties stood at over £15 million, credit facilities (such as overdrafts) at £18.25 million and connected transactions (such as guarantees) at £945,000.

By law, political parties must report all donations and borrowing over £7,500 to the central party, or over £1,500 to an accounting unit, to the Electoral Commission. For donations and borrowing accepted before 1 January 2010, the reporting thresholds were £5,000 and £1,000 respectively. All donations over £500 must be from a permissible source. The Commission publishes all donations over these thresholds on a quarterly basis.

Political parties were also required to report donations to the central party on a weekly basis during the UK general election period, which ran from 6 April to 6 May. Therefore, some donations that the Electoral Commission has published today in the quarterly report may have already appeared in the weekly reports.  

For individuals who stand as candidates at Parliamentary and local elections, there are separate reporting requirements. By law, candidates must report donations that they received to the Returning Officer for the constituency they contested. Candidates are not required to report donations to the Electoral Commission.

The Commission’s registers of donations and borrowing accepted in the second quarter of 2010 show that:

Donations

• Sixteen political parties reported donations totalling £26,265,964 (excluding public funds) accepted between 1 April and 30 June. 
• The three political parties to accept the most in donations were:
• Conservative Party - £12,322,220
• Labour Party - £10,864,653
• Liberal Democrats - £2,047,070
• Five parties also received a total of £1,086,285 in public funds.
• Four political parties reported 47 donations totalling £205,152 in this quarter that they should have reported in previous quarters.
• The Conservative Party and Liberal Democrats reported receiving a total of four donations amounting to £25,806 from impermissible sources, which they returned to the donor within the 30 days allowed.
• The Conservative Party also reported receiving two impermissible donations amounting to £1,275, which they did not return to the donor within the 30 days allowed. The Commission is currently discussing the matter with the party.
• The Labour party reported receiving a £1,000 donation from an unidentifiable source, which they returned to the donor within the 30 days allowed.
• Thirteen of the 397 registered parties have not yet provided their required donation return and six parties submitted a donation return late. The Electoral Commission will issue these parties with a penalty notice.

Borrowing

• The total amount of loans outstanding at 30 June 2010 was £15,253,478.
• Seven parties entered into new loans totalling £565,406. 
• The total amount of repaid loans reported (including loans converted to donations) was £424,400.
• The Liberal Democrats reported two new loans totalling £14,000 and a new credit facility of £2,000 in this quarter that they should have reported in previous quarters.
• The Conservative Party reported repayment of £63,445 of loans and the closure of a £3,500 credit facility in this quarter that they should have reported in previous quarters.
• The total amount currently available to all parties through credit facilities is £18,251,000.
• The total amount of connected transactions on behalf of parties is £945,000.
• Fifteen out of the 397 registered parties have not yet provided their required borrowing return and nine parties submitted a borrowing return late. The Electoral Commission will issue these parties with a penalty notice.

Peter Wardle, Chief Executive of the Electoral Commission, said: “Since 2001, we have made public details of almost 30,000 donations to political parties, with a total value of just over £433 million.

“Voters have come to expect a high level of transparency about the way political parties are funded, and never more so than for the period covering a general election in the UK. 

“Voters will want to see who funded political parties during the election campaign, and contributed towards this record breaking quarter.”

A summary of the donations and borrowing declared in the second quarter of 2010 follows below. Full details of all donations and loans are available on our registers at:
http://www.electoralcommission.org.uk/party-finance/database-of-registers. An analysis of donations in the second quarter is also available at: www.electoralcommission.org.uk/party-finance/party-finance-analysis/party-finance-analysis-Q2-2010 

For further information contact:

The Electoral Commission press office on 0207 271 0704.
Out of office hours 07789 920414.
Email press@electoralcommission.org.uk

Notes to editors

1. The Electoral Commission is an independent body set up by the UK Parliament. Our aim is integrity and public confidence in the UK’s democratic process. We regulate party and election finance, set standards for well-run elections and are responsible for the conduct and regulations of referendums held under the Political Parties, Elections and Referendums Act (2000).
2. The Political Parties, Elections and Referendums Act 2000 (PPERA) requires GB and NI registered parties to report cash and non-cash donations and borrowing on a quarterly basis to the Electoral Commission. 
3. Prior to 1 January 2010 parties had to report any donation or borrowing above £5,000 made to the central party, or donations or loans exceeding £1,000 made to a local accounting unit. 
4. Since 1 January 2010 parties must report any donation or borrowing above £7,500 made to the central party, or donations or loans exceeding £1,500 made to a local accounting unit. 
5. Prior to 1 January 2010 parties could accept donations or enter into borrowing of over £200 only if they are deemed ‘permissible’ under the terms of the Political Parties, Elections and Referendums Act (PPERA) 2000 at the time the donation was made or borrowing entered into. 
6. Since 1 January 2010 parties can accept donations or enter into borrowing of over £500 only if they are deemed ‘permissible’ under the terms of the Political Parties, Elections and Referendums Act (PPERA) 2000 at the time the donation was made or borrowing entered into. 
7. From 1 November 2007 parties on the Northern Ireland register of political parties have been required to conform to donation controls and from July 2008 with controls on borrowing.  As required by the legislation, permissible donations and borrowing reported to us will not be published. These are transitional arrangements that will apply until March 2011 at the earliest. 
8. The penalties for failure to submit statutory returns on time can be found at section 147 of PPERA, here:
   http://www.opsi.gov.uk/Acts/acts2000/ukpga_20000041_en_15#pt10-pb5-l1g147
9. Charts and tables providing comparisons to previous quarters can be accessed at: www.electoralcommission.org.uk/party-finance/party-finance-analysis. To search the register of donations to political parties, visit the Commission’s website www.electoralcommission.org.uk and go to the registers page using the 'party finance' link at the top of the home page. 
10. Quarter one 2010 figures on donations and borrowing were published by the Electoral Commission on 26 May 2010. The press release can be accessed at: http://www.electoralcommission.org.uk/news-and-media/news-releases/electoral-commission-media-centre/news-releases-donations/donation-and-borrowing-figures-for-political-parties
11. The figures reported for donations and borrowing have been rounded to the nearest £. Exact figures are available on our website. 
12. Table of donations reported in quarter two 2010 which should have been reported previously can be accessed here http://www.electoralcommission.org.uk/__data/assets/excel_doc/0005/79646/Late-donations-details.xls
13. Some donations appear on the register as being from the House of Lords or House of Commons. These are Short and Cranborne grants which are available to parties in opposition in the House of Commons and House of Lords respectively. 
14. Some donations appear on the register as being from the Electoral Commission. These are Policy Development Grants, which were established by PPERA 2000 for parties represented in the Commons by two or more sitting members. The grants are intended to assist parties in developing the policies that they will present in an election manifesto. The legislation provides the total sum of £2 million annually for this purpose. Policy Development Grants became reportable as donations for the first time in quarter three of 2006 as a result of the Electoral Administration Act 2006.
15. Details of all borrowing can be found here (along with details of interest rates and repayment or review dates): http://registers.electoralcommission.org.uk/regulatory-issues/loanstopolparties.cfm/_nocache  
16. Credit facilities are an agreement where a registered party is entitled to receive a loan of money from time to time from another person (or organisation). The credit facility will generally have an upper limit specified in the credit facility agreement. Examples of common credit facilities include overdrafts and credit cards. The amount displayed is the maximum that can be borrowed and not the amount that is drawn upon at any one time.
17. Connected transactions are an arrangement where a person (or organisation) gives any form of security on behalf of a political party in respect of a loan or a credit facility arranged with someone other than the party or the person giving security. Where a person (or organisation) has provided security or a guarantee, it is the maximum that they could be liable to pay.

Summary of Q2 2010 donations and borrowing

Please note figures are rounded to the nearest pound.

DONATIONS

Donations to political parties accepted in quarter two 2010

 
Donations from impermissible or unidentifiable sources in quarter two 2010

Donations accepted in previous quarters and reported late this quarter

Donations reported this quarter that should have been reported in previous quarters totalled £205,152

Public funds

The Conservative Party, Liberal Democrats, Plaid Cymru and the Scottish National Party accepted a total of £595,572 in Short money, which is paid directly by the UK Parliament to opposition parties in the House of Commons.  

The Conservative Party, Labour Party and Liberal Democrats accepted a total of £160,210 in assistance paid directly to opposition parties in the Scottish Parliament.

The Conservative Party and Liberal Democrats also accepted a total of £125,805 in Cranborne money, which is for opposition parties in the House of Lords.

The Labour Party, Plaid Cymru and the Scottish National Party claimed a total of £204,699 in Policy Development Grants, which are allocated according to a formula approved by the UK Parliament and distributed by the Electoral Commission.

BORROWING

Total outstanding loans by party as at 30 June 2010 (not including partial repayments)

New loans in quarter two 2010

Further details including the date the loan was entered into, date repayable, interest rate (whether fixed, variable or nil), whether security was given and details of the lender are available on the Electoral Commission website.

Loans repaid in full or converted to donation in quarter two 2010

Changes to terms and conditions of borrowings (such as changes to interest rate and repayment or review date) must be reported to the Electoral Commission. These details are available to view on the Commission website.

New loans and credit facilities reported this quarter that should have been reported in previous quarters

Loans repayments and ending of credit facilities reported this quarter that should have been reported in previous quarters