POLITICAL PARTIES

What are three ways in which political parties are funded?

-HOLDING FUNDRAISING EVENTS

-DONATIONS FROM WEALTHY INDIVIDUALS

-SHORT MONEY

What are fundraising events?

Organised activities run by political parties to raise funds for things like election campaigns

Give an example

In the 2024 general election at the conservative party annual Ball, a donor paid 25,000 pound for a dinnner with Jeremy Hunt( the then Chancellor of the Exchequer) . This can also involve lotteries , with prizes such as a 7 day luxury stay in the Bahamas . In total lotteries raised 225,000 pound in total in 2024.

What is the counter?

Fundraising events accounted for only a very small proportion of Conservative Party income in 2024—roughly 1–3% out of a 50 million total income .

Give an example of donations from wealthy individuals

In 2025 Reform UK received a donation of 9 million pound from Christopher Harborne who made his fortune in crypto currency. This was one of the largest single political donations ever reported from a living person in UK history. This pushed Reform UK’s fundraising above that of both the Conservative and Labour parties in that quarter.

What is short money?

This is money given to opposition parties to help their parliamentary work based on the number of seats they won in the general election and ensure they can effectively hold the government to account.

Give an example

In 2025/26 the conservative party were eligible for 5.5 million , the Lib Dems 2.5 million and both the Green party and Reform got 400,000 in short money. With parties receiving 22,000 per seat won at the general election.

What is the counter?

-THIS FUNDING IS RESTRICTED TO PARLIAMENTARY WORK AND IS FAR SMALLER THAN MONEY FROM PRIVATE DONATIONS , SHOWING THAT PUBLIC FUNDING ALONE CANNOT SUSTAIN PARTY CAMPAIGNING.

eg. In 2019 the Liberal Democrats’ Short Money of ~£2 million covered only a fraction of their ~£19 million election spend,

WHAT ARE THE PREMISES WE CAN USE TO DISCUSS WHETHER POLITICAL PARTIES SHOULD BE VOLUNTARILY FUNDED?

-RIGHTS PROTECTIONS

-REGULATION

WHY DO SOME SAY PRIVATE FUNDING IS NECCESSARY TO PROTECT RIGHTS?

THIS MEANS THAT IF YOU HAVE ACQUIRED YOUR MONEY BY LEGAL MEANS THEN YOU SHOULD BE ABLE TO SPEND IT FREELY HOWEVER YOU LIKE.

WHAT IS AN EXAMPLE TO DEMONSTRATE THIS?

-IN 2023 -2024 FRANK HESTER DONATED OVER 20 MILLION POUNDS TO THE CONSERVATIVE PARTY+ MULTIPLE 5 MILLION POUND DONATIONS. THIS WAS BECAUSE HE BELIEVED THE PARTY UNDERSTANDS AND VALUES THE NHS

WHY MAY THIS NOT ALWAYS BE GOOD?

IT CAN LEAD TO DISADVANTAGES FOR SMALLER PARTIES. THIS IS BECAUSE WEALTHY DONORS TEND TO DONATE TO ONLY LARGE PARTIES, WITH THE HOPE OF INFLUENCING POLICY ONCE THEY ARE IN POWER.

GIVE AN EXAMPLE OF THIS?

IN 2024 THE LABOUR PARTY’S INCOME WAS 91 MILLION IN TOTAL , WITH THE CONSERVATIVES RAISING 50 MILLION. IN CONTRAST THE GREEN PARTY WAS ONLY ABLE TO RAISE JUST UNDER 5 MILLION.

WHAT IS ANOTHER POSITIVE OF ALLOWING VOLUNTARY FUNDING?

-IT ENHANCES

WHAT DOES THIS MEAN?

BY ALLOWING CITIZENS TO DONATE BY WILL , IT ENCOURAGES PARTIES TO SEEK MEMBERS TO SECURE FUNDS.

WHAT IS THE BEST EXAMPLE TO SHOW THAT VOLUNTARY FUNDING ENSURES PARTCIPATION?