Previously unpublished papers reveal the true scope of Labour’s dependency on union cash.

Following Conservative pressure, the Government will publish the previously confidential minutes and papers of the Inter-Party Talks on the Funding of Political Parties.

Francis Maude, Shadow Minister for the Cabinet Office, led the Conservative delegation in the Talks. “Gordon Brown wrecked the opportunity to clean up politics because he wanted the unions’ votes to become Labour Party leader”, he said. “These documents expose the Labour Party’s addiction to union cash”.

The Talks were chaired by Sir Hayden Phillips and were suspended without substantive agreement in October 2007.

Peter Watt, then Labour General Secretary and a delegate on the Talks, has subsequently written how the Talks failed since “the Labour Party could not resolve its internal issues”, “my own party was the biggest block to reform” and Gordon Brown “repeatedly warned the Prime Minister [Tony Blair] that he would block any attempt to reduce the unions’ power.”

Peter Watt also notes how the Liberal Democrats were bought off by Labour:  “[Labour] managed to clinch a deal with the LibDems by promising that Menzies (Ming) Campbell would get a taxpayer-funded car and driver if the reforms went through.”

The newly published papers today reveal the true extent of the union funding of the Labour Party:

• Many union members would not pay a political levy to the Labour Party if given a choice.
• Some trade unions affiliate more individuals to the Labour Party than they have union members paying a political levy (only money from the political levy can be used for political purposes).
• From 2001 to 2006, the unions gave the Labour Party £45 million in cash.
• Trade unions pay £1 million a year to the Labour Party at a local and regional level, tying in local Labour Party branches through binding “Constituency Development Plans”.

Sir Hayden Phillips drew up detailed option papers on how the political levy could be reformed to give union members genuine choice. The Labour Party objected to these proposals. This was the key stumbling block that led to the Talks failing.

It’s wrong that union barons, not rank-and-file union members, decide how much to give to Labour”, Maude added.

“A Conservative Government will seek an agreed long-term settlement that would introduce an across-the-board cap on donations to end the big donor culture. As part of that reform, union members must have real choice on whether they want to pay a political levy and where it goes.”

Interesting to see how easy it was to buy off the Libdems.  I suppose some things never change.

Jim Ferguson

The Conservatives have announced that a Conservative Government will stop Labour’s tax rise on jobs by cutting waste.

Stopping the planned increases in National Insurance Contributions will result in 7 out of 10 working people being better off.

A Conservative Government will take immediate action to start cutting Government waste, in order to spend £6 billion less in 2010-11 than Labour’s plans.

“The re-election of a Labour Government under Gordon Brown – with more debt, waste and taxes – will bring us a new recession”, George Osborne said, speaking alongside Ken Clarke and Phillip Hammond.

“Labour will kill the recovery with their tax on jobs. We will cut Labour waste to stop it.”

Former Government advisers Sir Peter Gershon and Dr Martin Read, now members of the Conservatives’ Public Sector Productivity Advisory Board, advise that savings of £12 billion across all departmental spending are possible in-year without affecting the quality of front line services.

Having identified these savings the Conservatives can now commit to stop Labour’s tax rise on working people and jobs at the same time as reducing the deficit faster:

Labour are planning to raise Employees National Insurance Contributions (NICs) for everyone earning over £20,000. We will stop this increase altogether for everyone earning under £35,000 by raising the primary threshold at which people start paying NICs by £24 a week, and raising the Upper Earnings Limit by £29 a week.

Relative to Labour’s plans everyone liable for Employees NICs earning between £7,100 and £45,400 – which is 7 out of 10 working people – will be up to £150 better off a year under the Conservatives. Lower earners will get the greatest benefit as a percentage of their earnings. Nobody will be worse off.

Labour are also planning to raise Employers NICs for everyone earning over £5,700. This is a tax on jobs that will undermine the recovery. We will raise the secondary threshold at which employers start paying NICs by £21 a week, saving employers up to £150 for every person they employ relative to Labour’s plans. This will reduce the cost of Labour’s tax rise on employers by more than half.

Read George Osborne’s speech in full