News from Labour Matters

Labour coffers boosted by donations and new members

Former Deputy Leader Lord Prescott has said the party has forgotten how to organise and called for limits on party political spending, repeating claims he recently made to The Guardian that the Party is close to bankruptcy.

Calling for a membership drive, John Prescott, who is campaigning to be elected Treasurer of the Party, told the Scottish Parliament’s annual Festival of Politics:

“We want a strong treasurer who’s involved in the membership drive, putting a proper financial account into the party, and is an active political person in making that accountable to the constituencies. You can go on if you like and just have somebody doing what’s always been the way. Well, we cannot continue to finance a political party in that way.

“We have to do what I said when I was elected as deputy leader. The politics of organisation are equally as important as the politics of ideas. We forgot about the organisation bit,” the Press Association reports.

Whilst it may be helpful for Lord Prescott’s bid to be Treasurer, there is a problem with his narrative of falling membership and near bankruptcy.

28,000 new members have joined Labour since the election, and increased income from donations and tight controls on spending by politicians meant that Labour emerged from the election with more money than before Gordon Brown went to the country.

NEC member Ann Black told Labour Matters: “As the accounts will show, the loans from 2005 are still being repaid according to schedule, but at least we have not increased the debt.

“Looking forward, the surge in membership is bringing in substantial sums over budget, so there are some reasons to be cheerful.”

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