• Party Funding

    10 February 2020

    Dear Constituent,

    Thank you for contacting me about how political parties are funded.

    Anyone can give a donation or loan to a political party, individual or other organisation. However, the Electoral Commission sets strict rules about how these are made and received. When a donation or loan is received parties must record the information, check the source is permissible, confirm that it meets the requirements and report it to the Electoral commission if applicable. Parties have to report loans to the Electoral Commission if they are over £7,500 to the central party or over £1,500 to separate accounting units.

    The UK Parliament has allocated £2 million to political parties as a Policy Development Grant. This gives political parties the funds to develop policies to include in their election manifestos.

    Political parties, campaigners, members associations and elected officials such as MPs have to follow rules in the Political Parties, Referendums and Elections Act (PPERA) when spending money or accepting donations and loans. If rules are broken the Electoral Commission will investigate and can take action under its enforcement policy. Where a breach involves a criminal offence it can pass investigations onto the police or prosecuting authority to take further action.

    I hope this reassures you that the funding of political parties is closely monitored and regulated in respect of both private and public donations.

    Thank you again for taking the time to contact me.

    Yours sincerely,

    Mel Stride MP

    MP for Central Devon