Labour's money woes
James Forsyth 11:56am
Peter Oborne’s column in The Daily Mail reveals just how bad Labour’s financial position is. As Peter notes, there are doubts as to whether the party can be deemed a ‘viable going concern.’
Incredibly, there is a real chance that the Labour party might actually go bankrupt and that members of the NEC could find themselves personally liable for Labour’s debts:
This crisis is going to compound Brown’s political problems. The unions are only going to bail Labour out if it moves in their direction politically. But the public finances are in such bad shape that it is hard to see how the government could agree to a string of large public sector pay rises."This threat of personal liability is now being taken very seriously indeed, so much so that the GMB trade union has already taken the extraordinary step of discussing at its last executive council meeting whether its two representatives on Labour's ruling National Executive Committee (NEC) should be indemnified against financial loss in the event Labour goes bankrupt. "
Most worryingly for Brown, Oborne reports that some private donors are indicating that they will give to Labour again but only if it dumps Brown. That old adage—follow the money—seems particularly relevant this morning.
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Comments
salieri
May 31st, 2008 12:35pmAh, Prudence, Prudence, where did it all go wrong? Quem deus vult perdere, prius dementat.
King Prawn
May 31st, 2008 12:41pmI like the way that Oborne tries to blame Tony Blair and Lord Levy for the situation.
However, who was the person who angered those donors by revealing the 'cash for honours' scandal. Jack Dromey, husband of Harriet Harman.
And it was revealed by Dromey as a means of forcing Blair to quit being PM.
He got his reward when his wife won the deputy leadership of the Labour Party.
Trouble is, without Blair most of the donors have gone!!!
The Laughing Cavalier
May 31st, 2008 1:41pmIt would take a heart of stone not to laugh.
Bob
May 31st, 2008 1:49pmDoes anyone believe that they won't find some way to bail themselves out?
The Govt already gives the Unions millions which they give straight back to the Labour party.
No doubt they will all become taxpayer funded and only parties the EU approves of.
Water
May 31st, 2008 2:00pmHow ghastly, terrible thing terrible thing.
kinglear
May 31st, 2008 2:06pmActually, though no fan of NuLabpour, Blair and especially Brown, I must say all that has happened has shown just what a political giant Blair is/was. Not only did he get them elected 3 times, he got them the money.
Brown couldn't get anyone to give the Labour party a penny nowadays. Why give money to a lost cause? It's like the people buying houses at the minute - a certainty of loss.
Ian C
May 31st, 2008 3:49pmIf an MP goes bankrupt he cannot sit in Parliament. So .... hmmm?
Interesting times. Odds just got shorter on sooner prospective timings of early election dates.
Athesius the Facilitator
May 31st, 2008 4:51pmI disagree with kinglear about Blair being a political giant. He was not. He was a snake oil salesman who produced the brand that seemed good at the time. A political giant would be Atlee, Churchill, Thatcher. He couldn't lace their boots. He achieved little and was intimidated by the people around him. Political giant; do leave orf!! you have just made me pop another rib cartlidge.
Max
May 31st, 2008 5:36pm"the GMB trade union has already taken the extraordinary step of discussing at its last executive council meeting whether its two representatives on Labour's ruling National Executive Committee (NEC) should be indemnified against financial loss in the event Labour goes bankrupt."
Interestingly a lawyer was commenting at order-order yesterday that this could enable the creditors to go after the union for ALL the debt if they chose. Some £24 million or so.
Max
http://theerrorlog.blogspot.com
TrevorH
May 31st, 2008 6:12pmThe only people with any money and recourse to any money are the Unions. Its got to be concentrating a number of minds.
"He was a snake oil salesman" ... correct. A real statesman, a real politician even, would have sacked Brown long ago. Blair believed all the 'great chancellor guff' and though he could not, thought the economy was performing well.
But he should have sacked him because Brown was opposing his policies - never mind that Blair was ignorant of economics.
Fergus Pickering
May 31st, 2008 7:18pmBut Brown is also ignorant of economics surely.
Tina
May 31st, 2008 7:29pmAfter 11 years of Brown and co there are doubts as to whether UK PLC can be deemed a ‘viable going concern', never mind the Labour party!
Tel, Spain
May 31st, 2008 7:33pmGreat stuff Brown will achieve what Thatcher could only dream about, DESTROYING THE LABOUR PARTY.
Jess
May 31st, 2008 7:45pmHow can a party that either is facing bankruptcy or actually goes bankrupt have the cheek to say they are the party to be at the helm during troubled econnomic times?
mitch
May 31st, 2008 9:27pmI'm sure some obscure EU legislation requires the funding of a left wing party from public funds.
chris
May 31st, 2008 11:19pmAgree with Trevor, surely the whole sorry state of this government comes from the fact that Brown, who didn't have the numbers in'94, wanted to be PM with such lust that he would undermine Blair. Blair should have had the courage to sack Brown or transfer him to a department where he couldn't hide away and ferment trouble. Brown is the boil the Labour Party should have lanced long ago. He is festering and poisoness to all and they've only got themselves to blame. I really can't believe Blair didn't call his bluff years ago!
Austin Barry
June 1st, 2008 11:14amTony Blair, laughing all the way to his bank, must really be appreciating the proposition that revenge is a dish best served cold.
Richard Lowe
June 1st, 2008 8:46pmHere’s an idea.
The Labour party is on the brink of bankruptcy. The Conservative party is pretty well-fixed.
The mood of the country - as voiced in local elections and the Crewe by-election - is that people aren’t happy with how they’re being governed and want to thrash a few issues out and move on.
Why don’t the Conservatives offer to fund an autumn election. Set a modest (too much money is wasted by all parties on electioneering) sum that each party can spend. Agree to foot the bill. Let the best team win. Simple, “fair” and democratic.