Is the Labour Party still a going concern?

A few years ago, sitting in a taxi, I received a telephone call I will never forget.

It was a colleague at Conservative Central Office ringing to tell me that he wasn't completely sure if the staff's wages would be paid on time at the end of the month. They probably will be paid, he said, but I thought I ought to warn you.

I thanked him for the information and began thinking through the consequences of not being paid for my own bank balance and that of my team.

Then he added that he wasn't really telling me because he wanted me to know about my wages. He was telling me because, he said, although I may not realise it, I was, as a Director of the Conservative Party liable for the entire sum if the party couldn't pay it.

Really, don't worry about it, he said. Bye, he said.

Well, it didn't come to that in the end. And the fact that it didn't is one of many reasons why I respect and have affection for Michael Ashcroft. But it wasn't a nice moment.

I thought about it when reading Rachel Sylvester's column this morning on Labour's financial problems.

Despite all the fuss there has been, I think the issue is being underestimated.

First, there is insufficient understanding that the long term funding problems are associated with acute short term cash problems. At the end of any given month the party will be scrambling round looking for some live cash to help them through.

Michael Ashcroft was extraordinarily good about giving - he didn't impose political condiditons of any kind. I am in a position to be certain about that because I was director of policy.

Do we think the unions will be equally self-denying?

Second, when the auditors sign off the accounts they will have to certify that with all their staff and loans, but hardly any guaranteed income, the Labour Party is still a going concern. They had big doubts about doing this for the Tories, and I believe that this (guarantees) was another area where Michael helped out.

I think the auditors are having precisely this problem with Labour's accounts now. Who will come to their rescue. Anyone?

Comments

[Chris SE9]

No conditions from Ashcroft eh? Would that be the one who is now a member of the House of Lords and has yet to clear up whether he is on any UK electoral register?

[Simon Stephenson]

So there is such a thing as a free lunch. For the Conservative Party, at least.

One little thing bothers me, however.

I'd really like to know, if the Conservative Party were not in receipt of major levels of funding from Lord Ashcroft, whether a future Conservative government would be:-

(a) more rigorous,
(b) similarly rigorous, or
(c) less rigorous

in ensuring the UK has effective legislation that prevents UK generated income/profit from being spirited out of the UK tax net into that of a tax haven.

Straight, honest opinions only, please.