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Party Funding Supporting the Grassroots

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  • 8/22/2019 Party Funding Supporting the Grassroots

    1/70James Graham and Alexandra Runswick

    Party FundingSupporting the Grassroots

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    Party FundingSupporting the Grassroots

    James Graham and Alexandra Runswick

    The loans for peerages scandal has once again broughtthe debate about the funding of political parties to thefore. Part of the problem is that parties are caughtin a vicious circle: faced with declining numbers ofmembers and particularly activists, they depend uponlarge donations to fund professionally run electioncampaigns. This fuels perceptions of sleaze andreduces citizens commitment to parties still further.

    The answer has to be the revival of parties as effective,locally-funded campaigning entities, able to trulyrepresent the communities they come from. Thispamphlet brings together our most recent researchon the case for state funding to support local politicalactivity, and explores how it might be implemented.

    7.50ISBN 978-0-9555523-0-4

    New Politics NetworkCharter88

    UnlockDemocracy

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    Party Funding

    Supporting the Grassroots

    James Graham and Alexandra Runswick

    ISBN 978-0-9555523-0-4

    Design, editing & layout: Emily Robinson, Printed: CGI Europe

    Published by The New Politics Network, March 2007, 6 Cynthia Street, London, N1 9JF

    2007

    London

    New Politics NetworkCharter88

    UnlockDemocracy

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    About the Authors

    James Graham

    As Communications and Press Officer for Unlock Democracy,

    James is responsible for campaign materials, web activities

    including PartyWatch and is the main point of contact for any

    media queries.

    Prior to working for Unlock Democracy, James was a twice-elected

    sabbatical Communications Officer for the Liberal Democrat Youth

    and Students, Campaigns Officer for the Liberal Democrats in

    Leeds and Press Officer for an MEP.

    James personal interests include new media, green politics and

    alternative economics.

    Alexandra Runswick

    Alex is Parliamentary and Policy Officer at Unlock Democracy.

    She is responsible for developing links with MPs and managing

    parliamentary campaigns. Alex is currently working on the Elect

    the Lords campaign, reform of the royal prerogative and party

    funding reform.

    Whilst working towards her MA in Social Policy, Alex interned at theFawcett Society where she did research on gender and poverty and

    wrote the Womens Budget Group response to the 13th Household

    Below Average Income report.

    Alex is the author of Life Support for Local Parties - an analysis of

    the decline of local political parties and the case for state support.

    She has also worked with the British Council to produce People

    and Policy-making - a guide for Political Parties, a resource for

    local political parties on how they can involve the public in policymaking.

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    Contents

    4 Introduction

    Alexandra Runswick

    11 Party Funding: The View from the Grassroots

    James Graham

    26 Local Politics: A Case for Treatment?

    James Graham

    40 Preserving the Link, Promoting Transparency

    Alexandra Runswick

    48 Appendix A: Sample Trade Union Membership

    Form

    50 Appendix B: Sample Trade Union Renewal Letter

    51 Appendix C: Summary of Survey Results

    64 Appendix D: Glossary of Terms Used

    66 Recent Publications

    68 Join Unlock Democracy

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    Introduction

    Alexandra Runswick

    The loans for peerages scandal has once again brought thedebate about the funding of political parties to the fore. British

    politics is caught in a vicious circle whereby allegations of

    sleaze discourage people from participating in, and certainly

    from funding political parties, which combined with the

    increasing number and cost of elections - makes parties

    more dependent on large donations from wealthy individuals,

    which in turn fuels the perception of sleaze.

    Allegations of corruption are nothing new, and have tainted

    governments of all colours. They only serve to exacerbate

    the publics distaste for politics and politicians. But amid all

    the headlines we are missing the real crisis in British politics:

    the lack of activity on the ground. It is easy to get caught up

    in the millions that wealthy individuals can donate to political

    parties and not realise that many local parties have an income

    of only a few thousand pounds, even in an election year.

    The New Politics Network, now working with Charter 88

    as Unlock Democracy, first became involved in the party

    funding debate because we were concerned about the state

    of politics in the UK at a local level. Falling electoral turnouts

    were ensuring a debate about participation nationally but the

    inability of many local parties to field candidates in all wards

    at local government elections went unreported. The decline

    in party membership and income has not changed the rolesthat political parties play or their influence on society but it

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    Introduction

    has brought into question their ability to function properly as

    local campaigning entities.

    This pamphlet brings together our most recent research on

    the case for state funding to support local political activity,

    and how this might be implemented.

    The problem

    In 2006 we received funding from the Joseph Rowntree

    Reform Trust to investigate the state of local parties. Weconducted a survey of experience of local political activity

    and views on party funding reform. More than 500 people

    took part in the survey, including more than 330 local party

    activists from the three main parties Local Politics: a case for

    treatment? explores the issue of local party activity and shows

    clearly that in most constituencies the level of campaigning in

    the 2005 General Election was at a derisory level. In particular,

    Unlock Democracy found that, in the consitutiencies which

    were respresented in the survey:

    20% of Conservative Associations and 40% of Lib Dem

    Local Parties have fewer than 100 members per constituency.

    Conservative Associations in the North of England typically

    have fewer than 50 members per constituency.

    34% of Conservative Associations, 50% of Constituency

    Labour Parties and 73% of Liberal Democrat local parties

    received less than 5,000 in income in 2005. 32% of Conservative Associations, 44% of Liberal

    Democrat local parties and 50% of Constituency Labour

    Parties distributed less than one leaflet per household in the

    2005 general election

    At least 67% of survey respondents received no personal

    contact from any of the three main parties in the 2005

    general election. In solid Labour seats, this figure increased

    to 82%.

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    Introduction

    At a very basic level, a party with fewer members is less

    likely to be representative of the views of the community at

    large. One of the key roles of political parties is to aggregate

    views and present policies based on their shared values to

    the electorate. If fewer people are actively participating in

    political parties then they are exposed to a much smaller

    range of opinion. It also becomes more likely that the local

    party will be dominated by a small group of active members

    who campaign on their own priorities. This is not healthy for

    local democracy.

    For democracy to work we need healthy competitive politicalparties at a local level offering different policy platforms

    and fielding candidates. We need to accept that political

    communication between parties and the public is absolutely

    essential, and that many traditional methods of organising

    this are under-resourced and expect too much from too few

    people. But centralised campaign techniques such as the

    Conservatives use of Voter Vault at the last election, which

    get out the core vote but deliberately exclude large numbersof voters, are not the answer. Political communication and

    campaigning cannot be done with anything like the same

    effect if they are conducted only by central party headquarters

    and rely upon expensive advertising rather than personal

    contact.

    It has been apparent for some time that where there are

    active and competitive local parties, voter turnout is higher

    than where there is little competition or activity. The clearestexample of this is the relationship between the turnout and

    marginality of a constituency. In the 2005 general election

    there was a 17% difference in the turnout between the safest

    and most marginal seats.

    If politics were a business it would have gone bankrupt years

    ago, largely due to it having stopped investing in localised

    marketing campaigns and having not recruited any salespersonnel for over two decades. There are a number of ways

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    7

    Introduction

    that party funding could be reformed to bolster local party

    activism and allow new interests and parties to develop locally

    rather than simply funding the national party operations.

    Possible solutions

    In order to campaign and engage the electorate local parties

    need both people and money. State funding is in no way

    a substitute for activists, but it can be used to encourage

    political engagement at a local level.

    Local Politics: a case for treatment? outlines a range of

    policy solutions. Some, such as extending freepost to local

    elections, to help parties communicate with voters; others,

    such as matched funding, to incentivise political engagement;

    and finally some, such as caps on donations, to address the

    perception of corruption.

    Unlock Democracy has argued for targeted state funding

    to support local activity. Schemes such tax relief on small

    donations or matched funding up to an agreed limit - perhaps

    around 100 - could be used to encourage parties to seek

    out lots of small donations rather then a few large donations.

    Incentivising this low net worth fundraising would also

    encourage parties to engage with their communities outside

    of elections and to hold social events to raise money. This

    kind of state support would go some way to recognising small

    donations to political parties as being of value to society byputting them on a par with donations to charity.

    We were interested in the views of local activists because

    they have direct experience of both the finances and political

    activity of local parties, and are also the people who will be

    called on to operate any new scheme. The second part of our

    survey asked for their views on specific proposals for party

    funding reform and found:

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    Introduction

    This shows that, among activists at least, there is already a

    broad degree of consensus about how to move forward.

    Implementation

    Many of the proposals for the funding of political parties are

    not new; there are reports on this subject dating back 30

    years, but their proposals for new funding mechanisms have

    not been taken forward. The fact that Review of the Funding

    of Political Parties is seeking to build consensus between the

    political parties is a source of renewed hope. If reform is to

    succeed it has to be on the basis of what will improve British

    democracy as a whole and not just be in the interests of one

    party.

    However each party inevitably has its own culture, history

    and experience of fundraising. For the Conservatives this has

    historically been donations from wealthy individuals and bigbusiness, increasingly it is from unincorporated associations.

    A clear consensus for reducing spending limits to 15

    million, introducing a cap on individual donations at

    around 50,000 per year and tax relief on donations to

    political parties.

    Significant support for matched funding on donations

    and money-per-supporter schemes such as the Power

    Inquirys voter voucher proposal.

    Overwhelming support for restricting public funds to

    parties that are internally democratic and open to anyone

    to join (this would exclude racist parties such as the BNP

    which limit membership to those who belong to certain

    ethnic groups). Significant cross-party opposition to banning donations

    from trade unions (including nearly half of Conservative

    activists), but also strong cross-party consensus that

    individual union members should have more say over how

    their money is spent (including more than half of Labour

    activists).

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    Introduction

    The Labour Party has the historic link with the trade union

    movement, which remains its main source of income.

    The simplest mechanism for ending the perception that

    money can buy political influence is to introduce a cap on

    large donations to political parties. Unlock Democracy would

    prefer a cap set at a very low level around of 5,000 but it

    is likely that the consensual position will be 50,000. This

    received cross party support in our survey of local party

    activists.

    However while there is a broad consensus that individualsshould not be able to make very large donations, should

    donations from membership organisations on behalf of its

    members be treated in the same way? This immediately brings

    into question the Labour Partys links with the trade union

    movement and in particular the affiliation relationship. Unlock

    Democracy is concerned not just with innovative policy ideas

    but also with how our proposals could be implemented.

    In our submission to the Review on the Funding of Political

    Parties chaired by Sir Hayden Phillips, we suggested that

    trade unions should be able to act as brokers, collecting

    small donations on behalf of their members. Preserving the

    Link, Promoting Transparencyoutlines how this model could

    work in practice. These proposals aim to bring openness and

    transparency to the funding relationship but also to respect

    and maintain the link between the trade union movement and

    the Labour Party. This issue threatens to block any attemptat reforming the funding of political parties. It would be a

    travesty if by seeking to maintain the status quo the trade

    union movement allowed multi-millionaires to continue to buy

    political influence.

    It was hoped that the introduction of Political Parties Elections

    and Referendums Act in 2000 would herald a new era of trust

    in politics. But openness and transparency about donationsto political parties are not enough in themselves to end

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    Introduction

    allegations of sleaze and restore public confidence in political

    parties as institutions of civil society. We need to both support

    local political engagement through targeted funding and

    end the possibility of corruption by capping donations. It is

    essential that we seize this opportunity for reform because, as

    our survey of local party activity, shows the status quo is not

    sustainable. The price of political campaigning - both during

    and between elections is the price of democracy. We cant

    continue to expect to get democracy on the cheap.

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    11

    Party FundingThe View From the Grassroots

    James Graham

    Summary

    In the summer of 2006, the New Politics Network surveyed

    activists of political parties about their views on party funding

    and the level of activity within their local parties. On the

    matter of activists' views on party funding, we have found

    the following:

    A clear consensus for reducing spending limits to 15

    million, introducing a cap on individual donations at around50,000 per year and tax relief on donations to political

    parties.

    Significant support for matched funding on donations

    and money-per-supporter schemes such as the Power

    Inquiry's "voter voucher" proposal.

    Overwhelming support for restricting public funds to parties

    that are internally democratic and open to anyone to join

    (this would exclude racist parties such as the BNP).

    Significant cross-party opposition to banning donations

    from trade unions (including nearly half of Conservative

    activists), but also strong cross-party consensus that

    individual union members should have more say over how

    their money is spent (including more than half of Labour

    activists).

    Overall, we believe these findings suggest that a cross-party

    consensus on reforming the way political parties are funded

    is within reach.

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    Spending Limits

    Activists from all three main political parties support loweringnational spending limits. There is a clear consensus among

    Labour and Conservative activists for a cap of around 15

    million, while the Liberal Democrats would go further still.

    1: The amount each political party can spend

    nationally in a general election is currently restricted

    to approximately 20 million. Do you th ink this should

    be changed? If so, what to?

    Party (sample size) Median Figure Excludingantis*

    Labour (104) 15 million 15 million

    Conservatives (72) 15 million 15 million

    Lib Dems (153) 10 million 10 millionOther Party Members (32) 7.5 million 5 million

    Other Respondents (88) 10 million 10 million

    * This figure excludes the responses from those who were

    opposed to a limit at all.

    Cap on Donations

    There is a clear consensus for a limit on individual donations

    of some kind. There is less consensus on what that limit

    should be, however 50,000 would appear to be a best fit

    as it is favoured by Labour activists and is Conservative Party

    policy (even if the majority of Conservative activists would

    favour a higher cap).2: Some people argue that there should be a limit or

    cap on donations to political parties. Do you agree

    with this?

    Party (sample size) Yes No Dont

    Know

    Labour (104) 64.4% 32.7% 2.9%

    Conservatives (72) 60.3% 39.7% 0%

    Lib Dems (154) 90.3% 8.4% 1.3%

    Other Party Members (32) 75% 18.8% 6.2%Other Respondents (88) 81.8% 13.6% 4.5%

    The View from the Grassroots

    13

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    Principles

    Not surprisingly, there is a strong consensus that the financial

    health of parties is fundamental to parliamentary democracy.

    This is one of the main assumptions that Sir Hayden Phillips'

    Review is based on.

    Both Liberal Democrat and Labour activists feel that public

    funding is necessary, although the Conservatives dissentfrom this view. There is also broad agreement that public

    funding should be directed at a local level; a large minority

    of Conservative activists disagree with this but they do not

    constitute a majority.

    3: The financial health of our political parties is

    fundamental to the health of our parliamentary

    democracy.Party (sample size) Agree/AgreeStrongly

    Neitheragree/disagree

    Disagree/DisagreeStrongly

    Labour (107) 91% 6% 3%

    Conservatives (75) 83% 8% 10%

    Lib Dems (155) 84% 11% 3%Other Party Members (32) 69% 9% 22%

    Other Respondents (89) 53% 16% 31%

    1

    2a: If you do support a cap, how much should

    donations from individuals be capped to per year?

    Party (sample size) Median Figure Excluding

    antis*Labour (97) 50,000 10,000

    Conservatives (67) 250,000 50,000

    Lib Dems (150) 10,000 10,000Other Party Members (32) 10,000 10,000

    Other Respondents (84) 10,000 5,000

    * This figure excludes the responses from those who

    were opposed to a limit at all.

    The View from the Grassroots

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    5: Any additional public funding should go to local

    parties on the basis of local support.

    Party (sample size) Agree/AgreeStrongly

    Neitheragree/disagree

    Disagree/DisagreeStrongly

    Labour (104) 43% 21% 36%

    Conservatives (72) 39% 17% 45%

    Lib Dems (155) 60% 19% 21%

    Other Party Members (31) 42% 23% 26%

    Other Respondents (88) 45% 32% 24%

    It is not surprising that a large majority of Labour activists believe

    that funding systems should respect the existing history and

    structures of political parties. This has been one of the basic

    tenets that Labour has been pushing with regard to its roots in

    the trade union movement and system of affiliate organisations.

    Significantly however, there is broad agreement from the othertwo main parties on this issue.

    4: Increased public funding of political parties

    is necessary to help encourage democratic

    engagement.

    Party (sample size) Agree/AgreeStrongly

    Neitheragree/disagree

    Disagree/DisagreeStrongly

    Labour (163) 56% 12% 31%

    Conservatives (74) 33% 5% 61%

    Lib Dems (154) 67% 12% 19%Other Party Members (32) 53% 16% 31%

    Other Respondents (88) 41% 11% 48%

    5: Any additional public funding should go to local

    parties on the basis of local support.

    Party (sample size) Agree/AgreeStrongly

    Neitheragree/disagree

    Disagree/DisagreeStrongly

    Labour (104) 43% 21% 36%

    Conservatives (72) 39% 17% 45%

    Lib Dems (155) 60% 19% 21%Other Party Members (31) 42% 23% 26%

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    6: Any system of party funding must respect the

    history and structures of political parties.

    Party (sample size) Agree/

    AgreeStrongly

    Neither

    agree/disagree

    Disagree/

    DisagreeStrongly

    Labour (105) 79% 11% 10%

    Conservatives (73) 44% 25% 32%

    Lib Dems (152) 40% 29% 31%Other Party Members (30) 27% 37% 36%

    Other Respondents (88) 14% 41% 45%

    The idea that political parties should be able to opt out of

    the funding system - not be subject to caps but subsequently

    not be entitled to public funding - has been mooted by

    the Conservative Party nationally. There is overwhelming

    disagreement from the other parties however and Conservative

    activists themselves are split on the issue.

    7: Political parties should be allowed to opt out of

    public funding: if they dont receive any public money,

    they shouldnt have to introduce limits to how theyraise and spend their money.

    Party (sample size) Agree/AgreeStrongly

    Neitheragree/disagree

    Disagree/DisagreeStrongly

    Labour (104) 13% 13% 74%

    Conservatives (73) 39% 23% 39%

    Lib Dems (154) 13% 12% 76%Other Party Members (31) 19% 23% 58%

    Other Respondents (89) 25% 15% 61%

    We were surprised and encouraged that an overwhelming

    majority of respondents agreed that party funding should be

    restricted to parties that are internally democratic and open

    to anyone to join. This would exclude racist parties such as

    the British National Party, the constitution of which excludes

    certain ethnic groups from being able to join the party.

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    8: Political parties should only be entitled to party

    funding if they are internally democratic and open to

    anyone to join.

    Party (sample size) Agree/AgreeStrongly

    Neitheragree/disagree

    Disagree/DisagreeStrongly

    Labour (106) 86% 8% 7%

    Conservatives (74) 74% 11% 15%

    Lib Dems (155) 91% 5% 5%Other Party Members (32) 81% 6% 12%

    Other Respondents (87) 78% 8% 14%

    Proposals

    We proposed six possible options for changing the way

    in which parties are funded and can spend their money.

    Of these, one option emerged as a strong contender for

    consensus while two others enjoyed a significant degree of

    support.

    Tax relief on donations was supported by a majority of activistsfrom the three main parties; surprisingly it was most popular

    among Conservative activists who were broadly opposed to

    all other systems of state support.

    Of the other options, money-per-supporter (where voters

    could choose to allocate a small amount of public funding

    to the party of their choice to fund local campaigning) was

    broadly supported by Labour and Lib Dem activists, and

    broadly opposed by Conservatives. A majority of Lib Dem

    activists supported a matched funding system which also

    enjoyed significant support from Labour activists, but was

    opossed by a majority of Tories.

    Money-per-vote was supported by a majority of Lib Dems,

    but Labour activists were split and this option was particularly

    opposed by Conservatives (again, this is at variance to

    their party policy in support of such a system). Subsidisingcampaign expenditure and increasing local spending limits

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    The View from the Grassroots

    were both broadly opposed.

    11: Small donations should be matched with public

    money, pound for pound, to encourage parties to

    engage more with the public .

    Party (sample size) Agree/AgreeStrongly

    Neitheragree/disagree

    Disagree/DisagreeStrongly

    Labour (105) 43% 16% 40%

    Conservatives (73) 29% 18% 53%

    Lib Dems (154) 55% 24% 21%

    Other Party Members (31) 42% 29% 29%Other Respondents (84) 27% 24% 49%

    10: Individuals should be allowed to decide if they

    want a small amount of public funding to be given to

    the party of their choice to be used by that party for

    local activity.

    Party (sample size) Agree/AgreeStrongly

    Neitheragree/disagree

    Disagree/DisagreeStrongly

    Labour (104) 44% 19% 34%

    Conservatives (72) 30% 22% 48%

    Lib Dems (153) 47% 24% 30%Other Party Members (31) 32% 16% 52%

    Other Respondents (85) 45% 25% 30%

    9: Donations to political parties should be subject to

    tax relief, just like donations to charities.

    Party (sample size) Agree/AgreeStrongly

    Neitheragree/disagree

    Disagree/DisagreeStrongly

    Labour (105) 52% 11% 36%

    Conservatives (74) 77% 7% 16%

    Lib Dems (154) 62% 10% 28%Other Party Members (31) 48% 10% 42%

    Other Respondents (86) 44% 8% 48%

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    12: Political parties should get public funding

    proport ionate to the number of votes cast for them at

    the previous general election.

    Party (sample size) Agree/AgreeStrongly

    Neitheragree/disagree

    Disagree/DisagreeStrongly

    Labour (105) 43% 14% 43%

    Conservatives (72) 24% 14% 63%

    Lib Dems (154) 52% 15% 33%Other Party Members (30) 27% 13% 60%

    Other Respondents (86) 27% 10% 62%

    13: Election candidates should have 50% of their

    election expenditure paid for by the state so long as

    they got at least 10% of the vote to encourage local

    campaigning.

    Party (sample size) Agree/AgreeStrongly

    Neitheragree/disagree

    Disagree/DisagreeStrongly

    Labour (105) 40% 16% 45%

    Conservatives (72) 25% 11% 64%

    Lib Dems (154) 48% 19% 32%Other Party Members (31) 32% 16% 51%

    Other Respondents (85) 29% 24% 47%

    14: The amount of money that each candidate canspend in an election should be increased to encourage

    local campaigning.

    Party (sample size) Agree/AgreeStrongly

    Neitheragree/disagree

    Disagree/DisagreeStrongly

    Labour (105) 38% 15% 47%

    Conservatives (71) 35% 17% 48%

    Lib Dems (153) 34% 24% 43%Other Party Members (31) 19% 23% 58%

    Other Respondents (84) 23% 32% 45%

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    Trade Unions

    We decided to ask a specific set of questions concerningtrade union donations because we are particularly concerned

    that this issue threatens to derail the whole review process.

    We were therefore pleasantly surprised by the results and feel

    that, among activists at least, there is a real chance at gaining

    a consensus across the main parties.

    Unsurprisingly, an overwhelming majority of Labour activists

    oppose banning trade union donations and feel unions play

    an important role in promoting participation. Significantly

    however, a majority of Lib Dem activists also oppose a ban.

    There is no clear consensus among Conservatives.

    15: Donations to political parties by trade unions

    should be banned.

    Party (sample size) Agree/AgreeStrongly

    Neitheragree/disagree

    Disagree/DisagreeStrongly

    Labour (105) 1% 3% 96%

    Conservatives (74) 47% 11% 42%

    Lib Dems (153) 25% 19% 55%Other Party Members (31) 42% 16% 42%

    Other Respondents (86) 27% 13% 59%

    16: Trade Unions play an important role in encouraging

    participation in our democracy.

    Party (sample size) Agree/AgreeStrongly

    Neitheragree/disagree

    Disagree/DisagreeStrongly

    Labour (106) 95% 4% 1%

    Conservatives (73) 26% 18% 56%

    Lib Dems (153) 46% 28% 26%Other Party Members (32) 34% 38% 28%

    Other Respondents (86) 47% 20% 32%

    The Power Inquiry's proposal of restricting trade union

    contributions to around 100 per member enjoyed no supportfrom any party, but a much lower cap of around 5 per

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    member received broad support from both Conservative and

    Lib Dem activists.

    17: Donations to political parties by trade unions

    should be restricted to an affiliation fee of around 5

    per member and no more.

    Party (sample size) Agree/AgreeStrongly

    Neitheragree/disagree

    Disagree/DisagreeStrongly

    Labour (104) 14% 19% 66%

    Conservatives (70) 45% 19% 37%

    Lib Dems (151) 45% 23% 32%

    Other Party Members (31) 42% 16% 42%Other Respondents (84) 38% 29% 33%

    18: Donations to political parties by trade unions

    should be restricted to around 100 per member and

    no more.

    Party (sample size) Agree/AgreeStrongly

    Neitheragree/disagree

    Disagree/DisagreeStrongly

    Labour (103) 20% 22% 58%

    Conservatives (68) 15% 15% 70%

    Lib Dems (147) 18% 29% 54%Other Party Members (31) 39% 29% 32%

    Other Respondents (82) 30% 26% 44%

    The results that surprised us the most however were that a

    majority of Labour activists both supported the idea of trade

    unions acting as brokers - encouraging their members todonate to the party directly and treating such donations as

    individual contributions - and also that individual members

    should have more say over how much is donated to the party.

    Just 17% of Labour activists disagreed with the notion that

    union members should have more say.

    The objection to trade union funding has always been that

    it is undemocratic and in the hands of very few people. The

    fact that so many Labour activists agreed with the statement

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    that union members should be given more say over how their

    money is spent indicates that trade union claims that such

    criticisms are politically motivated and do not match reality

    are wide of the mark.

    19: Trade unions should be allowed to collect money

    from their members on behalf of the political party

    of their choice. Money raised in this way should be

    treated as individual donations.

    Party (sample size) Agree/AgreeStrongly

    Neitheragree/disagree

    Disagree/DisagreeStrongly

    Labour (104) 67% 16% 17%Conservatives (73) 40% 10% 50%

    Lib Dems (153) 56% 11% 33%Other Party Members (30) 60% 17% 23%

    Other Respondents (86) 48% 15% 36%

    20: Individual trade union members should have more

    say over how much money is donated to political

    parties.

    Party (sample size) Agree/AgreeStrongly

    Neitheragree/disagree

    Disagree/DisagreeStrongly

    Labour (105) 56% 27% 17%

    Conservatives (71) 80% 6% 14%

    Lib Dems (153) 88% 8% 4%Other Party Members (31) 94% 3% 3%

    Other Respondents (87) 80% 13% 8%

    Conclusions

    Unlock Democracy supports the Review of the Funding of

    Political Parties and in particular its objective that the funding

    system must contribute to greater democratic engagement.

    For some time now we have been considering how the

    funding system might be designed to do this and we have

    published a number of pamphlets on the subject including

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    Strong Parties, Clean Politics (2003) and Life Support for

    Local Parties (2004).

    We are keenly aware however that for a system to be

    introduced it must enjoy broad support amongst both political

    parties themselves and the public at large. While a number

    of opinion polls have been conducted in recent years, with

    mixed results, very little research has been conducted to look

    at what party activists think. They will after all be expected to

    make any new system work.

    Our survey of party activists suggests there is more consensusat the grassroots than the rhetoric of senior party politicians

    might suggest.

    Funding Systems

    There is a clear consensus among party activists for reducing

    spending limits to 15 million, introducing a cap on individual

    donations set at around 50,000 and introducing tax relief.

    We believe that these views are broadly in line with publicopinion and are thus realistic.

    Other options for changing the system would be more

    controversial. Given the broad support they received amongst

    both Labour and Liberal Democrat activists however, we

    believe that matched funding and money-per-supporter

    systems (including the Power Inquirys voter voucher) are

    still worthy of consideration and wider debate. The Electoral

    Commissions proposal for a hybrid system combining taxrelief with matched funding for donations from non-taxpayers

    (e.g. pensioners on a fixed income) could certainly form the

    basis of a consensus.

    The key test must always be whether the proposals would

    promote engagement. We believe that such schemes would

    achieve precisely this as they would encourage political parties

    to sign up and thus actively engage with as many members ofthe electorate as possible. However, the price that parties

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    would have to pay for any system that is more generous than

    that would be tighter spending limits and caps on donations,

    both of which enjoy substantially more support amongst the

    public than in political parties themselves.

    The Conservative Party has made a lot of running in calling

    for a money-per-vote system. We are critical of such systems

    as we believe they will do nothing to encourage engagement

    and may create a culture of dependency between the party

    and the state. It is clear from this survey that party activists

    are not keen on such proposals either - and are opposed

    by two-thirds of activists of the Conservative Party itself.We therefore believe that the Review should not seriously

    consider such a system.

    Trade Unions

    The degree of agreement on trade unions surprised and

    encouraged us. We believe the way forward is now clear and

    would enjoy the support of party activists across the political

    spectrum.

    Legislation affecting trade unions should be changed so

    that members are regularly informed about how the unions

    political fund works and are given the opportunity to opt out

    simply and without fuss (i.e. ticking a box on a form or sending

    an email, not having to phone a helpline and negotiate with a

    member of staff).

    So long as it can be demonstrated that union members havegiven their informed consent to contribute to the political

    fund, there is no need to either cap donations from unions

    or for the existing legislation requiring unions to ballot their

    members on the issue every ten years. The amount that each

    individual contributes via their union should be auditable and

    subject to the cap on personal donations.

    Eligibility for FundingFinally, we believe that the overwhelming support we found

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    for public funding to be restricted to internally democratic

    and open parties means that the Review should look into

    excluding racist parties such as the BNP.

    We are aware that this survey has not covered all issues,

    mainly for the sake of simplicity, and a number of these issues

    will be explored in our final submission to the Hayden Phillips

    Review. In addition, we received the following submissions

    from members of the following other political parties:

    Party Total

    RespondentsBritish National Party 2

    Common Good 1

    English Democrats Party 1

    Green Party / Scottish Greens 5

    Liberal Party 1

    Mebyon Kernow 1

    Plaid Cymru 9

    Scottish National Party 9

    Ulster Unionist Party 1Did not say 3

    Methodology

    We conducted this survey in association with the Joseph

    Rowntree Reform Trust as part of our submission to the

    Hayden Phillips Review on the Funding of Political Parties.

    We posted a copy of the survey to the local parties of thethree main political parties and more than 200 identified Plaid

    Cymru and Scottish National Party activists and councillors.

    In addition, the survey was accessible online.

    See the table below for a breakdown of the responses we

    received from each of the three main political parties, including

    their respective roles in their local party.

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    Respondents from the main political parties

    Party

    TotalResponden

    ts

    Role in local party

    Chair

    Secretary

    Treasurer

    Membership

    Secretary

    OtherLocalExec

    PrimaryCouncillo

    r

    Parish/TownCll

    r

    Candidate

    Agent

    Conservatives 75 40 4 2 2 9 15 2 4 6

    Labour Party 106 12 39 10 9 16 11 3 4 3

    Liberal Democrats 155 12 5 7 93 14 24 20 14 1

    Notes: Primary Councillor includes all members of County, District, Metropolitan

    and Unitary Councils. Candidate includes all approved Parliamentary and

    Assembly Candidates. Some individuals may perform multiple roles within their

    local party.

    Finally, we also received contributions from a number of non-

    party members. They expressed support for the following

    parties:

    Party TotalRespondents

    British National Party 1

    Conservatives 11

    Green Party / Scottish Greens 12

    Labour Party 11

    Liberal Democrats 17

    Plaid Cymru 1

    Respect 1

    Social Democratic and Labour Party 1

    United Kingdom Independence Party 3

    Did not say/support no party 30

    We regard the number of responses from the three main

    political parties as sufficient to provide a rough snapshot of

    grassroots opinion. However, we do not regard the survey

    results from minor political parties and other individuals as

    particularly representative and are including these results for

    the sake of completeness only.

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    Summary

    Of those parties that responded to our survey:

    3% of Constituency Labour Parties, 20% of Conservative

    Associations and 40% of Lib Dem Local Parties have

    fewer than 100 members per constituency. Conservative

    Associations in the North of England typically have fewer than

    50 members per constituency.

    34% of Conservative Associations, 50% of Constituency

    Labour Parties and 73% of Liberal Democrat Local Parties

    received less than 5,000 in income in 2005 meaning they

    had less than 7 pence to spend per elector in that year. By

    contrast, Conservative Associations in Conservative-held

    constituencies typically received more than 50,000 in 2005.

    32% of Conservative Associations, 44% of Liberal Democrat

    Local Parties and 50% of Constituency Labour Parties

    distributed less than 1 leaflet per household in the 2005

    General Election.

    At least 67% of the population received no personal contact

    from any of the three main parties in the 2005 General Election.

    In solid Labour seats, this figure increased to 82%.

    Constituency Labour Parties typically hold just 2-3 social

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    and fundraising events per year. This contrasts with at least

    12 such events per year held by Conservative Associations in

    their held seats, at least 4 per year by all other Conservative

    Associations and at least 4 per year by Liberal Democrat

    Local Parties where the party either holds the seat or is in

    contention for it.

    Constituency Labour Parties report a big drop in membership

    and activism levels compared to 5 years ago, and a slight dip

    in income levels. Conservative Associations report a slight

    improvement in membership and income. Liberal Democrat

    Local Parties report a slight dip in membership, but animprovement in activism and income.

    Activity levels during the last General Election was extremely

    low in the majority of constituencies in Great Britain. In a

    typical solid Labour-held constituency, no political party

    delivered more than 1 leaflet per elector.

    Methodology

    This project is an attempt to take a snap shot of the health

    of local constituency parties during the 2005 general election

    year. It is intended to help us to draw up a picture of the state

    of political parties across Great Britain.

    The local constituency parties of the Conservatives, Labour,

    Liberal Democrats, Plaid Cymru and the Scottish National

    Party were sent a survey asking them on their views on party

    funding as well as their local party activity. Members of all

    political parties were also free to fill in the survey online. The

    results of the first part of this survey, on opinions about party

    funding, was published in August 2006.

    We received useable data about local activity from 286 local

    constituency parties (70 Conservative, 76 Labour, 129 LibDem, 5 Plaid Cymru, 6 SNP). We have subdivided the results

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    of each party into four categories, depending on marginality:

    Solid - the party won this seat by more than 15% ahead

    of their nearest rival in both the 2001 and 2005 general

    elections.

    Held - the party won this seat in the 2001 and/or 2005

    general elections but it is not considered Solid.

    Close - the party came within 15% of the winning party of

    this seat in the 2001 and/or 2005 general elections but did not

    win in either.

    Other - all other constituencies.

    See Figures 10a-d1 for a breakdown of constituencies by

    region for each party.

    This categorisation enables us to compare like with like.

    Where a constituency changed hands in 2005, both the party

    that lost the seat and the winner are listed as a held seat

    because it is assumed that they both contested the seat

    strongly. Because of the different performances of political

    parties, each party has a different share of seats in these

    categories. For example, more than a third of Labour seatsare classified as solid, while 80% of Lib Dem count as

    other. In combination, there are numerous different types

    of constituencies, but almost two-thirds fit into three main

    types: solid Labour-held constituencies, solid Conservative-

    held constituencies and Labour held constituencies where the

    Conservative Party are close (figure 10e).

    Because the number of responses we received from the Plaid

    Cymru and Scottish National Party were so low, we havenot attempted to draw any clear conclusions about them.

    However, we have included what date we received in the

    results tables.

    Some of the sample sizes we have for the other parties are

    also quite low. However, in all cases we have had responses

    from more than 10% of the total number of constituency local

    parties. Overall, we regard these figures to be reflective of1 All Figures are available in Appendix C, below

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    the current state of local politics; if anything we would expect

    respondents to over-estimate their local constituency party's

    activity levels.

    The Results

    Membership

    It is clear from this data that while there is a clear

    correlation between membership numbers and vote share,

    it is most pronounced in the Conservative Party and least

    pronounced in the Labour Party (Figure 2). While thetypical Conservative Association in a solid constituency

    reports having a membership in excess of 500, the median

    result for Associations in other constituencies was between

    100 and 199 members, while the mode result (i.e. the

    most common single response) was less than 50. This

    contrasts with Constituency Labour Parties where safe

    constituencies typically reported having 300-399 members

    other constituencies reported having 200-299 members.

    These figures suggest that in the seats where the Conservative

    Party is out of contention, the party has literally died off

    and there is little sign of any new blood. This will severely

    restrict the partys ability to expand. Labour, at least, have

    a broader base from which to build in their moribund areas.

    The results of our survey suggest that while just 3% of

    constituencies nationwide have fewer than 100 Labour

    members, 20% have fewer than 100 Conservative members

    and 40% have fewer than 100 Liberal Democrat members.

    However, a clear majority of all Constituency Labour Parties

    reported membership going down compared to five years

    ago. Reports from the other parties were more mixed,

    with a majority of Conservative Associations in held

    and other seats reporting an improvement (Figure 10a).

    IncomeAs with membership, there is a wider variation of income levels

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    amongst Conservative Associations than there is amongst

    Constituency Labour Parties (Figure 3). Indeed, the range is

    even more pronounced, with Conservative Associations typically

    reporting income levels in excess of 50,000 and even 100,000.

    It is striking to note the difference in income levels

    between Constituency Labour Parties and Conservative

    Associations. In a contested Labour-Conservative marginal

    constituency, the local Conservatives have, on average,

    five times the spending power of their Labour opponents.

    As we will see with some of the other results, Constituency

    Labour Parties are very dependent on the central party for

    funding and campaigning. This model served Labour very wellin both the 1997 and 2001 general elections but they proved

    vulnerable to the Conservatives strict targeting approach

    in the last general election and this looks set to continue.

    These figures suggest that 73% of Lib Dem Local

    Parties, 50% of Constituency Labour Parties and 34%

    of Conservative Associations have an annual income

    of less than 5,000 a year, which itself would only givea political party around seven pence to spend on each

    constituent in a typically-sized constituency (around 70,000).

    A majority of Conservative Associations in held seats report

    an improvement in income over the past five years, while

    a majority of their close seats report that things have got

    worse (Figure 10c). This suggests that income has been

    targeted more in recent years, as we have seen with Lord

    Ashcrofts decision to fund target seats of his choice directly

    through his company Bearwood Corporate Services Ltd.

    Staff

    Given the low levels of income, it is unsurprising therefore

    that most local constituency parties cannot afford to employ

    staff (Figure 4a). Once again, it is notable that even in

    held and solid Labour seats, Constituency Labour Parties

    employ very few members of staff. However, they also report

    relatively little support from other paid staff - just 47% ofheld seats reported being supported in this way (Figure 4b).

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    The Conservative Party tends to employ staff in their target

    and held seats, and subsequently supports them less with

    staff from elsewhere. However, Conservative Associations

    in areas with relatively low voter support do report

    significantly more support than their Labour counterparts.

    The Liberal Democrats tend to both employ staff

    locally in target and held seats, and provide such seats

    with more help from elsewhere. Only 25% of other

    constituencies report receiving help from other paid staff.

    Leaflets Delivered

    Our results from the local party survey (Figure 5a) correspondfairly well with our results from the General Election Monitoring

    Project that we undertook last year (Figure 5b). Both

    surveys suggest that in their target and held constituencies,

    the Liberal Democrats produce the most election leaflets,

    followed by the Conservatives. However, as the Liberal

    Democrats have fewer seats in which they have a realistic

    chance of winning, overall the number of leaflets they

    distribute nationwide is much lower than this would imply.As suggested by our results on income levels however, a

    very large number of constituency local parties in non-target

    areas produced minimal quantities of election literature.

    According to our survey, 50% of Constituency Labour Parties,

    44% of Lib Dem Local Parties and 32% of Conservative

    Associations distributed fewer than 40,000 leaflets. A

    typical constituency has around 40,000 households. Given

    that the Royal Mail is legally obliged to deliver at least one

    leaflet to every household, this suggests that in these areasthe local parties themselves did not deliver a single leaflet.

    Canvassing

    Local constituency parties across all categories report very

    little personal contact with voters (Figure 6a), and this is borne

    out from our survey of voters themselves (Figure 6b). The

    results of the latter suggest that Labour personally contacted

    just 16% of the population, the Conservatives contacted 13%and the Lib Dems contacted 7%. Combined, this suggests that

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    approximately 67% of the population had no personal contact

    with a politician from the main parties during the general election

    campaign at all. This is almost certainly an under-estimation as

    parties will undoubtedly have concentrated their efforts in the

    same marginal areas, meaning that a high proportion of people

    contacted will have been contacted by two or more parties.

    Activism

    The proportion of members who are actively engaged

    in the party seems to be consistent between 10% and

    24% across all categories (Figure 7). Only Constituency

    Labour Parties in other constituencies reported less thanthis and Lib Dem Local Parties in close constituencies

    reported more than this, at around 25% to 49%.

    We also asked local constituency parties to estimate whether

    activism levels have improved or got worse over the past five

    years and here there is more significant difference (Figure

    10b). A clear majority of Constituency Labour Parties in

    all categories report a worsening of activism levels. Only

    Conservative Associations in close constituencies report afalling off of activism, while in held seats a majority report

    things improving. A majority of Lib Dem Local Parties in both

    close and held seats report an improvement in activism

    levels.

    Newsletters

    As we saw with election leaflets, the Liberal Democrats are the

    most keen on delivering local newsletters in their target seats,

    while Labour deliver the fewest of this kind of campaigningliterature (Figure 8).

    Extremely roughly, we can estimate that according to these

    figures, around 40% of the UK population receives at least

    two newsletters from the Conservatives, around 36% receive

    at least two per year from Labour and around 35% receive

    at least two a year from the Lib Dems. Even more roughly,

    this would suggest that around 25% of the population never

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    receive anything at all (as with the canvass estimation above,

    this is likely to be an under-estimate due to the tendency

    of parties to target the same areas). Furthermore, two

    newsletters per year is not that high and if we had asked

    about more frequent deliveries, the results would have almost

    certainly been significantly lower.

    Meetings

    Constituency Labour Parties tend to hold the most executive

    and organisational meetings, followed by the Lib Dems and

    then the Conservatives (Figures 9a & 9b).

    As implied by their relatively high levels of income, Conservative

    Associations are much better at holding frequent social and

    fundraising events (Figure 9c). Conservative Associations

    in solid and held seats typically reported holding monthly

    events of this type, compared to their Labour equivalents who

    tended to hold just two social or fundraising events per year.

    Even Conservative Associations in non-target areas typically

    reported holding twice as many meetings of this kind as theirLabour equivalents.

    Both Labour and Conservative local constituency parties

    typically hold policy discussion meetings at least quarterly in

    their target and held seats (Figure 9d). This contrasts starkly

    with Liberal Democrat Local Parties who typically hold half as

    many. This may be of surprise when we consider that Liberal

    Democrat Local Parties have more direct say in their partys

    policymaking process than their main rivals.

    North-South Divide?

    All three parties tend to have fewer members in the North

    of England (North West, North East and Yorkshire and

    Humber), than they do in the rest of England (Figure 10). The

    contrast is most stark in the Conservative Party, with a typical

    Conservative other constituency in the North reporting fewer

    than fifty members. The Conservatives also have the biggestdifference in terms of income levels and number of leaflets

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    delivered between North and South: Conservative other

    constituencies have roughly a quarter of the spending power

    of their counterparts in the rest of England.

    Conclusion

    Political parties perform important roles without which

    representative democracy could not exist. They offer alternative

    policies from which voters choose at elections, organise

    campaigns to mobilise voters and perhaps most importantly

    they field candidates for public office. Political parties maybe unpopular but there is simply no better alternative model

    for organising democracy. They are still the only effective

    mechanism by which normal people can have any personal

    contact with the body politic, but as this research shows they

    are now nearing critical condition in terms of their ability to

    perform the set of tasks we require from them.

    Activity in typical constituenciesUnder our classification, of solid, held, close and other seats

    there are three most common types of constituency: solid

    Labour (223), Labour-held seats where the Conservatives

    are close but the Liberal Democrats arent (110) and solid

    Conservative (79) seats. Combined, these types make up just

    under two thirds of all British constituencies.

    In a typical solid Labour-held constituency, all three of the

    main political parties struggle to distribute just one leaflet per

    elector; the Conservatives tended to distribute just one leaflet

    per household. In this type of constituency the three local

    parties have a combined income of less than 20,000, no staff

    between them and at least 82% of the electorate receive no

    personal contact at all from the main political parties. 59% of

    constituencies in the North of England count as solid Labour

    seats. The Conservatives are at their least active in these

    areas, typically having fewer than fifty members in this typeof constituency.

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    In Labour held seats where the Conservatives are in contention

    but did not win in 2005, the two main political parties are more

    active, but not by very much. In this type of constituency,

    Labour and the Conservatives typically distributed one or

    two leaflets per elector. Membership and income levels are

    higher, but Constituency Labour Parties typically still lack

    the resources to employ staff and even the Conservatives

    typically only have someone working part time. At least 57%

    of the electorate receives no personal contact during elections

    in this type of constituency.

    In the third most common type of constituency - solid

    Conservative constituencies - Conservative Associations are

    much better off, with incomes of more than 50,000 and more

    than 500 members. They typically have more than one full time

    member of staff working for them. But while the Conservative

    Association in this sort of constituency is actively engaged in

    holding social events for their members and supporters, they

    appear to be doing very little to actively engage with the widerelectorate. Their political rivals, not surprisingly, are even less

    active in this area. At least 80% of the electorate in this type

    of constituency received no personal contact from one of the

    three main parties in the last general election.

    According to the respondents to our survey in these three

    types of constituency, the level of political campaigning was

    so low that many people will have barely noticed the general

    election. There certainly are constituencies where the levelof political campaigning was high - indeed the seats that

    changed hands between the Lib Dems and Conservatives in

    2005 were very hotly contested. However, there are just eight

    constituencies of this type; they are very much the exception

    not the rule.

    Trends within the main parties

    The high income and membership levels of ConservativeAssociations in Conservative-held constituencies clearly

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    show that under certain circumstances, political parties can

    be self-sufficient at a local level, but this model is difficult to

    sustain in areas where the party lacks an MP. Indeed, our

    survey results suggest that at a time when the party nationally

    appears to be enjoying a bit of a renaissance, local parties

    in close constituencies are continuing to decline. These

    are constituencies where the party continues to enjoy a high

    share of the vote but has not had electoral success for some

    time. In these constituencies, a majority of Conservative

    Associations reported that membership, activism and income

    levels have all got worse in the last five years, in stark contrast

    to Associations in held seats.

    Conservative Associations in seats with an even smaller share

    of the vote seem more optimistic, but membership levels in

    this category of Association are extremely low, especially in

    the North. Overall it is clear that at a grassroots level, the

    Conservatives have not only failed to recover from the knock

    they took in the mid-90s, but they have continued to slide.

    Labour are in many ways the exact opposite. Their membership

    is much more evenly spread across the country, but

    paradoxically their local parties are much less independent.

    There is far less of a culture of fundraising and holding social

    events in Labour and significantly less local campaigning.

    In theory this would suggest that Labour constituencies are

    extremely vulnerable, but in practice they have very little

    competition in most of their strongholds.

    Liberal Democrat Local Parties tend to be more independent

    than Constituency Labour Parties, but their strongholds are

    much less self-sufficient than those of the Conservative Party.

    However, in the vast majority of constituencies, their activism

    levels are quite low, although not typically to same extent as

    Conservative Associations in constituencies where they have

    a low share of the vote.

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    National Wealth, Local Squalor

    For all the talk of the last General Election setting a record

    in terms of national campaign expenditure, it is clear that

    very little of this money ended up in most constituencies. To

    misquote J. K. Galbraiths famous phrase, our party political

    system exists in a state of national wealth and local squalor.

    Money raised nationally is spent nationally, on direct mail,

    billboard and print advertising, market research and rallies.

    Direct mail played a key role in the 2005 General Election

    campaign. The Conservative Party spent 4.5 million

    on direct mail which, according to them, was spent ontargeting just 800,000 individuals nationwide. Sophisticated

    targeting techniques such as the Conservatives Voter Vault

    database work by only targeting floating voters in marginal

    constituencies. Rather than working on the principle of

    convincing as many voters as possible of the party's argument

    through time consuming personal contact, it targets people

    who - on the basis of statistical data - are likely to support

    the party. The Conservatives were by no means alone in usingdirect mail or targeting particular voters. The Labour targeted

    specific groups of the population such as schoolgate mums.

    However the other parties did not use this tactic to the same

    extent as the Conservatives.

    It cannot be over-emphasised that targeting itself is a

    major contributing factor to increasing voter alienation and

    disengagement. Research in the US suggests that face-to-

    face contact can raise turnout by 9.8 percent, as opposed

    to a 0.6 percent increase for direct mail ('The Effects of

    Canvassing, Telephone Calls and Direct Mail on Voter Turnout:

    A Field Experiment' by AS Gerber and DP Green, American

    Political Science Review, 94:3 pp 653-663[2000]). While local

    parties across the country struggle to spend seven pence per

    elector, eighty times that amount was spent on these target

    voters in direct mail by the Conservative Party alone.

    That parties will vary the amount of attention they give any

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    particular seat depending on its relevant importance to them

    is an obvious and natural element of political campaigning

    strategy. What we need to question is whether the minimum

    level of campaigning in lesser target seats is providing a

    sufficient level of communication to the electorate to sustain

    good, informative, participatory democracy itself.

    For democracy to work, we need healthy competitive political

    parties at a local level offering different policy platforms and

    fielding candidates. In order to campaign, local parties need

    both people and money. We are caught in a vicious circle: the

    more political parties centralise their campaign operations,the more local activism dwindles, meaning that parties have

    to centralise and target resources even more. Elections are

    being determined by an ever decreasing group of people.

    Policy Solutions

    If this slide is to be stopped, or even reversed, we needto provide three things: incentives for parties to campaign

    locally, disincentives for campaigning nationally and measures

    that will act as a safety net to ensure that a basic level of

    campaigning goes on at a local level. These include:

    Incentives

    Tax relief on political donations up to, for example, 200, to

    encourage parties to pursue small donations.

    Matched funding - similar to tax relief, but pound-for-pound

    matched funding would provide even more of an incentive.

    Money-per-supporter - either through a voter voucher

    system as proposed by the Power Inquiry, or through the

    voter registration system to encourage parties to sign up

    supporters locally.

    Money-per-member to encourage recruitment.

    Increase constituency spending limits to encourage local

    campaigning (matched with a reduction in national spendinglimits).

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    Rebates on constituency campaigning to encourage parties

    to spend money locally.

    Recognise political activity as voluntary work as part of

    existing return-to-work and education schemes to reduce

    the official stigma of this kind of community-focused, skills-

    acquisitive activity.

    Involve political parties in voter registration drives - use

    parties to maximise registration and, in the process, engage

    with the electorate (this could only be done if the UK adopted

    a secure system of individual voter registration to minimise

    fraud).

    Consider engagement in planning issues - the design ofbuildings can obstruct engagement (e.g. gated communities,

    lack of external letter boxes, etc). The planning system should

    require developers to take these issues into consideration.

    Disincentives

    Caps on donations to prevent political parties from relying

    on major donors.

    Reduce national election spending limits and introduce annualnational spending limits to discourage national campaigning.

    End loopholes that enable spending in individual constituencies

    to count as national spending, thereby bypassing local

    spending limits.

    Safety nets

    Extend the freepost system - allow parties to send out

    more than one election address per elector via the Royal Mail

    during Parliamentary and Assembly elections. Extend thissystem to local elections.

    Voter information packs - more extensive information about

    the election should be included with polling cards.

    Election websites - a one-stop shop where voters can learn

    more about the election, the candidates standing and their

    policies.

    Local Politics

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    0

    Preserving the Link,Promoting Transparency

    Alexandra Runswick

    Introduction

    Allegations of sleaze are once again damaging British politics.

    one of the simplest ways of ending the perception that money

    buys influence is to cap donations to political parties. While

    there is a broad consensus that individuals should not be

    able to make very large donations, should a donation from a

    membership organisation on behalf of its members be treated

    in the same way?

    The Conservative Party argues that all donations from

    organisations and companies should be banned and that

    donations from individuals should be capped at 50,000.

    The Labour Party is concerned that a cap on donations is

    simply another mechanism to try and break the link between

    that Labour Party and the trade union movement.

    In our submission to the Review on the Funding of Political

    Parties chaired by Sir Hayden Phillips, we suggested that

    trade unions should be able to act as brokers, collecting

    small donations on behalf of their members. This paper

    outlines how we believe this model could work in practice.

    These proposals aim to bring openness and transparency to

    the funding relationship but also respect and maintain the link

    between the trade union movement and the Labour Party.

    This issue threatens to block any attempt at reforming the

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    funding of political parties. It would be a travesty if by seeking

    to maintain the status quo, the trade union movement allowed

    multi-millionaires to continue to buy political influence.

    Trade Unions and the funding of political parties

    The Labour Party grew out of the trade union movement.

    There is a shared culture, history and political philosophy that

    links the political party with the wider movement.

    Trade unions engaging in political activities are required toestablish a political fund approved by a ballot of their members,

    regardless of whether they are affiliated to a particular political

    party. Initially payment into the political fund was compulsory

    but the 1913 Trade Union Act gave members the right to opt

    out of the fund. During the 1980s and early 1990s, when the

    Thatcher governments passed a wide variety of legislation

    to restrict the activities of trade unions, the regulations on

    political funds were extended. In addition to a resolution to

    create the fund, all union members had to be balloted, by

    post, every ten years to decide whether the political fund

    should be retained. This was intended to break the funding

    link between the Labour Party and the trade unions.

    The definition of a political act, for which a political fund was

    required, was also extended to include activities such as

    the registration of voters, even where a particular party or

    candidate is not being endorsed.

    There have now been three rounds of political ballots. They

    have all been passed with significant majorities but have been

    very expensive for trade unions to run and have done little, if

    anything, to give individual trade unionists influence over the

    way the fund is operated. Trade unions are heavily regulated

    and certainly in terms of their political activities are treated

    differently from other membership organisations. No othermembership organisations running political campaigns, even

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    those that are affiliated to a political party, are regulated in

    this way.

    Trade unions and political activity have always been inextricably

    linked - campaigning for improvements in pay and conditions

    has often involved lobbying to change national government

    policy. There are two distinct issues which have become

    entwined:

    Unlock Democracy believes that trade unions should be able

    to participate fully in the political process but that any system

    of affiliation needs to be open, transparent and based on the

    active consent of the individual.

    The Issue what does afliation mean?

    Although it should be noted that not all unions are affiliated to

    the Labour Party, the largest unions are. It is this affiliation that

    complicates the issues of caps on donations. Is a donation

    from an affiliated union a collection of membership fees or

    small donations from its members or a corporate donation

    from an organisation seeking to buy influence?

    There are three levels of affiliation: a union can affiliate at a

    Labour Afliation Fees - Current Rates

    National 3 per member

    Regional 12.5p per member

    Constituency Party 6p per member (minimum 6)Source: TULO.

    Trade unions carrying out political activities to raise

    awareness of their campaigns and further their members'

    interests.

    Trade unions funding, supporting and campaigning forone particular political party.

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    national, regional and constituency level. The union pays an

    affiliation fee for each member that they affiliate at each level

    and receive rights within the Labour Party accordingly, such

    as participating in the policy making process.

    We believe that in order for this to be seen as a collection of

    small individual donations collected by the union, there has to

    be active consent on the part of the individual member and

    they should have the choice of contributing to an affiliated or

    general fund.

    We do not believe that this fundamentally challenges orchanges the relationship between the union movement and

    the Labour Party. Indeed we have heard affiliation being

    described in these terms. However for some people this

    undermines the collective nature of affiliation.

    Unlock Democracys proposal

    Unlock Democracy is not seeking to undermine the relationship

    between trade unionists and the Labour Party. Affiliation is

    unique and in many respects reflects exactly the kind of local

    grass roots political activism, which we seek to encourage.

    We recognise that trade unions are political organisations

    and have a right to lobby government and political parties to

    further their members' interests. However this must be based

    on the active consent of the individual trade union member.

    This is already the case for UNISON, one of the Labour Partyslargest donors. We recently conducted a survey of local party

    activists' views on party funding. Of the Labour respondents

    58% agreed that individual trade union members should

    have more say over how much money is donated to political

    parties.

    Our criticism of the relationship rests solely with the degree

    of control which union executives and general sectaries

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    exercise over the political fund. The decision of the RMT in

    2002 to reduce its contribution to the Labour Party from over

    90,000 to just over 20,000 is a good illustration of this

    problem. This decision was not based on a reduction in union

    members, in those paying into the political fund, or on any

    decision of individual union members. Instead, the decisions

    were based primarily on policy disagreements between the

    unions leadership and the Labour Government. The sense

    that an individual or small group of individuals can wield

    such disproportionate influence over a national political party

    or Her Majestys Government is offensive to most peoples

    sense of fair play.

    Unlock Democracy believes that trade unions should be able

    to act as brokers for their members, collecting donations and

    passing them on to the affiliated party. The union must also

    pass on the contact details of each affiliated member to the

    Certification Officer of the party so that this can be audited

    and shown to be open and transparent. Individuals should

    have the clearly stated right to opt out of affiliation but not ofcontributing to the unions political and campaigning activities

    through the political fund.

    At the moment trade unionists have the legal right to opt

    out of political funds. However to those who are not already

    aware of this right it is not always easy to exercise - the

    extent to which this is explained on the membership form

    varies widely. We believe that rather than opting out of the

    political fund entirely, a trade unionist who doesnt wish tosupport the affiliated party should be able to contribute to a

    general political fund. This is already the case for one of the

    largest unions, UNISON, and while we are aware that it was

    a particular set of circumstances that brought this about, we

    think this model could be replicated.

    For affiliated unions this would in effect mean having two

    political funds. A certain percentage of each subscription,determined by the union as at present, would be paid into the

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    political fund. The individual member would choose which

    fund to pay into when he or she joined the union. A model

    membership form is included in Appendix A to demonstrate

    how this could work. The amount of money paid into the

    political fund would remain the same regardless of which

    fund is chosen. The affiliated political fund could be given as

    a donation to the affiliated party or it could be used for third

    party campaigning activity.

    Those members who chose to be affiliated would pay a levy in

    addition to their contribution to the political fund which would

    have to cover the cost of any affiliation fees, at any level. Thelevel of the additional levy would be determined by the union

    concerned. We have suggested 50p per month as this would

    cover the national affiliation fee as well as affiliations at a

    lower level but is unlikely to act as a disincentive to affiliation

    (a female UNISON member on median earnings currently pays

    a monthly subscription of 14). The surplus raised could be

    used at the unions discretion to affiliate at other levels or as a

    donation to the Labour Party. If the union campaigned duringan election as a registered third party this activity would have

    to be funded by the affiliated political fund. We are not trying

    to hinder affiliation but to ensure that the general political

    fund is not used to subsidise affiliation fees or activities in

    any way.

    Each member should receive an annual reminder of their

    membership, as already happens with those paying by direct

    debit. This should tell them which political fund they arepaying into and how this can be changed if they wish. It could

    also include information about the union's recent activities. A

    model membership renewal letter can be found in Appendix

    B. If these changes were made we believe there would be no

    justification for keeping the political fund ballots.

    For a non-affiliated union all members would pay into a

    general political fund which would be used to promote theunions campaigns and its members' interests but not to

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    campaign on behalf of one particular party. The political

    fund would not be regulated i.e. there would be no need for

    a political ballot and how it is spent would be determined

    by the union. However if the union decided to affiliate there

    would need to be a ballot of all members to agree this and if

    the union decided to donate money to any political party then

    the cap would apply.

    How it would work in practice

    An individual decides to join a union which is affiliated to a

    political party - they have 2 choices:

    Paythe standard

    subscription rate, eg.14 per month*, which

    includes a contribution tothe General Poli tical

    Fund.

    Paythe standard

    subscription rate, eg.14* + 50p per monthto become an affiliatedmember of the political

    party

    x^of this membershipfee is given as a

    contribution to theGeneral Political Fundwhich is not alligned to

    any political party.

    x^of this membership feeis given as a contributionto theAf filiated Political

    Fund which can be used tocampaign within or on behalfof the affiliated political party.

    The extra 50pafilliation fee is given

    directly to the affiliatedparty with the contactdetails of the member.

    EITHER:

    OR:

    * 14 based on the subscription rates of a female UNISON member onmedian pay.

    ^ x would be determined by the union's own internal structures.

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    Recommendations

    Notes

    Sixteen Trade Unions are currently affiliated to the Labour Party Amicus,

    ASLEF, BECTU, BFAWU, Community, CWU, GMB, MU, NACODS,

    NUM, TGWU, TSSA, UCATT, Unison, Unity, USDAW see http://www.unionstogether.org.uk/aboutus2.html for more information

    See TULO factsheet 5 How do Trade Unions participate in the party?

    http://www.unionstogether.org.uk/

    When joining an affiliated trade union, members must begiven a clear choice on the membership form to contribute

    to the affiliated or general political fund (see Appendix A);

    If they choose the affiliated fund they should pay an

    additional affiliation fee that would be determined by the

    union but we have suggested 50p per month;

    The contact details for affiliated members must be passedto the Certification Officer of the party to which they are

    affiliated;

    All union members should receive a letter when their

    membership is due for renewal with some form of annual

    report telling them which political fund they contribute to,

    what the fund has been used for, and how to change their

    contribution if they wish (see Appendix B); and

    The requirement for a political fund ballot every ten years

    should be repealed.

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    Please ll in this form in BLOCK CAPITALS using black ink and give it to your

    rep or steward or post to the address below.

    SECTION ONE: YOUR PERSONAL DETAILS

    Please tick or ll in the boxes below

    Mrs Ms Miss Mr Other

    First name O t h e r

    initial(s)Surname/Family name Date of

    Birth

    / /

    Address

    Postcode

    National Insurance number (from your payslip)

    o

    Please tick this box if

    you require materialsin a different format (eg. large

    print or Braille) - be sure to

    supply contact details below.

    Please give a telephone

    number / voice / text / email

    address for us to contact you

    - indicate if work or home.

    How would you describe your ethnic origin?

    Bangladeshi

    Chinese

    Indian

    Pakistani

    Asian UK

    Asian other

    Black African

    B l a c k

    Caribbean

    Black UK

    Black other

    White UK

    Irish

    White other

    Contact tel / voice / text / email

    SECTION TWO: YOUR EMPLOYMENT DETAILS

    Employers name

    Your job title / occupation

    Department / section

    Workplace name and address

    Postcode Payroll number (from your payslip)

    M e m b e r s h i pForm

    Appendix A: Sample Trade Union Membership Form

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    SECTION THREE: WHAT YOU WILL PAY

    Please tick the appropriate box for your earnings before deductions.

    Tick Here Annual Pay Your monthly subscription

    Up to 2,000 1.30

    2,001 - 5,000 3.50

    5,001 - 8,000 5.30

    8,001 - 11,000 6.60

    11,001 - 14,000 7.85

    14,001 - 17,000 9.70

    17,001 - 20,000 11.50

    20,001 - 25,000 14.00

    25,001 - 30,000 17.25

    30,001 - 35,000 20.30

    over 35,000 22.50

    Please tick this box if you are a student member in full-time education (includingstudent nurses and Young Apprentices). Your subscription is 10 per year.

    SECTION FOUR:

    POLITICAL FUND

    SECTION FIVE:

    YOUR AUTHORISATION

    AnyUnion is afliated to the Labour Party.AnyUnions Afliated Political Fund (APF) isused to campaign for and promote our policiesand members interests within the LabourParty, locally and nationally, in Parliament andEurope. If you choose to join this fund youbecome an afliated member of the Labour

    Party.Afliated members pay an additional 25p

    per month as an afliation fee to the LabourParty which gives you rights within the party.

    AnyUnions General Political Fund (GPF)is used to pay for campaigning at branch,regional and national levels of the union andfor research and lobbying in Parliament andEurope. It is independent of support for anypolitical party.

    It is important that you indicate a choiceof fund by ticking one of the boxes on theright. If you do not tick a box the defaultposition is that you wish to become anafliated member.

    I wish to join AnyUnion and accept itsrules and constitution.

    I authorise deduction of AnyUnionsubscriptions from my salary/wages at therate determined by AnyUnion in accordancewith its rules to be paid over to them o