Matthew Oliver (London, Unlock Democracy): The results of Unlock Democracy’s recent survey should act as a wake-up call to those members of the Labour movement who believe that the issue of party funding can be kicked into the long grass. 

The survey, commissioned by The Joseph Rowntree Reform Trust, finds that the Labour party risks a future Conservative government, possibly supported by Liberal Democrats and other parties, destroying the existing Labour-Union link if it fails to introduce meaningful reforms to the party funding system in this session of Parliament.  

Sir Hayden Phillips wrote in 2007 that party finance reform was “within our reach but not in our immediate grasp". If Labour does not take action soon on these issues, these results show that they well find that the Conservative Party has snatched the opportunity from them and done with it what they will.

There currently exists a large amount of cross party consensus on party finance reform.  For instance the majority of Labour and Conservative respondents agreed with Sir Hayden Phillip’s recommendations that there should be a cap of £50,000 on political donations to political parties.  However, there are key differences in opinion between the two main parties about how best to proceed and these differences are hardening, most obviously in terms of capping trade union donations.   

There is a clear lack of sympathy on Conservative benches for continued trade union funding of the Labour Party at current levels.  The majority of respondents believe that donations should be capped at the same level, with no exemptions for affiliation fees, including 84.38 per cent of Conservative respondents.  This strength of feeling can further be seen in the fact that nearly 80 per cent of Conservative MPs who answered believe that a new Conservative Government would legislate in this area in a first term.  This shows that there is a real desire on the Conservative benches to fundamentally alter the Labour trade union relationship. 

However, it seems Labour MPs have not woken up to that fact with nearly 60 per cent believing that the Conservatives won’t legislate. If they do not soon Labour may well be facing legislation in the next parliament which not only breaks the Labour Party trade union link as we know it, (which a future Labour Government would have trouble repealing) but also creates a large black hole in its finances.  

If this survey should shake Labour out of its complacency, it also points to a possible way forward.  Labour back-benchers surveyed supported 'individualisation' - treating the affiliation fees of trade union members as individual donations, so long as it can be shown they have given their informed consent to do so - by a factor of three to one.  

These remaining months before a General Election represent a political opportunity for the Labour Party.  The Political Parties and Elections Bill currently before the house, provides a current legislative window for reform.  If the Government were to introduce credible proposals on caps, and on other areas where there is broad agreement, (such as making small political donations eligible for tax relief), opposition parties would find themselves in a bind. To not support reforms would risk facing the political wrath of an electorate tired of incidents such as the Deripaska affair.

The choice for Labour Party is simple, if stark: reform now on their terms or risk facing a Conservative government who would force reform on them.