Skip to main content

The Institutional Evolution of the Party Funding Regime in Great Britain

  • Chapter
  • First Online:
Party Funding and Corruption

Part of the book series: Political Corruption and Governance ((PCG))

  • 366 Accesses

Abstract

This chapter traces the institutional development of the way in which political parties are funded in Great Britain. This evolution is separated into four distinct eras: the aristocratic era, the plutocratic era, the modern era and the ‘stop-go’ era. History has a long causal tail and developments and decisions made in the aristocratic era have fundamentally shaped legislation passed in the ‘stop-go’ era. I then unpick why further reform, inclusive of the introduction of greater levels of state subsidy, has proven so hard to implement in Great Britain. There are three institutional locks preventing this: public opinion, timing and the relationship between the two major parties and their institutional donors.

This is a preview of subscription content, log in via an institution to check access.

Access this chapter

Chapter
USD 29.95
Price excludes VAT (USA)
  • Available as PDF
  • Read on any device
  • Instant download
  • Own it forever
eBook
USD 79.99
Price excludes VAT (USA)
  • Available as EPUB and PDF
  • Read on any device
  • Instant download
  • Own it forever
Softcover Book
USD 99.99
Price excludes VAT (USA)
  • Compact, lightweight edition
  • Dispatched in 3 to 5 business days
  • Free shipping worldwide - see info
Hardcover Book
USD 99.99
Price excludes VAT (USA)
  • Durable hardcover edition
  • Dispatched in 3 to 5 business days
  • Free shipping worldwide - see info

Tax calculation will be finalised at checkout

Purchases are for personal use only

Institutional subscriptions

Notes

  1. 1.

    It should also be noted that CIPPA was passed with support from both Liberals and Conservatives. Therefore, although not involving the introduction of state funding echoing the argument of Michael Koß that an intervention as important as this (and relating to party funding regime change) requires the consent of all major parties (Koß 2011).

  2. 2.

    Non-union sponsored candidates tended to be funded by local socialist societies or local trade councils, though their expenses were often considerably lower than their union sponsored colleagues.

  3. 3.

    This situation mirrors the recent history of Canadian political finance reforms (Young 2015).

  4. 4.

    Though in 2017 the three parties had little to say about further reform. This was also largely the case in 2019, although the Liberal Democrats had a similar pledge to their 2015 manifesto to ‘introduce wider reforms to party funding along the lines of the 2011 report of the Committee on Standards in Public Life’.

  5. 5.

    For example, Phillips recommended phasing out extra state support added by 2020.

  6. 6.

    Which rather neatly encapsulates many post-Brexit discussions being held around dinner tables across the country, when you think about it.

  7. 7.

    ‘It has become a well-established custom that matters affecting the interests of rival parties should not be settled by the imposition of the will of one side over the other, but by an agreement reached either between the leaders of the main parties or by conferences under the impartial guidance of Mr Speaker’ (Churchill 1948—HC Deb, 16 February 1948, col 859).

References

  • Anechiarico, F. and Jacobs, J.B. (1996), The Pursuit of Absolute Integrity: How Corruption Control Makes Government Ineffective (Chicago: University of Chicago Press).

    Google Scholar 

  • Bale, T. (2015), Five Year Mission: The Labour Party Under Ed Miliband (Oxford: Oxford University Press).

    Google Scholar 

  • BBC News. (2013b), Italy Scraps State Funding for Political Parties. Available at http://www.bbc.co.uk/news/world-europe-25370808, accessed 22/09/2019.

  • Campbell-Hall, V. and Joyce, L. (2011), Review of Political Party Funding (London: TNS-BMRB).

    Google Scholar 

  • Capoccia, G. (2015), ‘Critical Junctures and Institutional Change’, in Mahoney, J. and Thelen, K. (eds.), Advances in Comparative-Historical Analysis (Cambridge: Cambridge University Press).

    Google Scholar 

  • Capoccia, G. and Keleman, D.R. (2007), ‘The Study of Critical Junctures: Theory, Narrative, and Counterfactuals in Historical Institutionalism’, World Politics, 59(2): 341–369.

    Article  Google Scholar 

  • Clegg, N. (2011), Speech: House of Commons Debates (col 25WS), 23 November. Available at http://www.publications.parliament.uk/pa/cm201011/cmhansrd/cm111123/wmstext/111123m0001.htm#11112377000008, accessed 22/08/2019.

  • Collins, R. (2014), Building a One Nation Labour Party: The Collins Review into Labour Party Reform (London: Labour Party).

    Google Scholar 

  • Committee on Standards in Public Life. (2011), Political Party Finance: Ending the Big Donor Culture (London: Stationery Office).

    Google Scholar 

  • Cook, A. (2008), Cash for Honours: The Story of Maundy Gregory (Stroud: The History Press).

    Google Scholar 

  • Doig, A. (2003), ‘Political Corruption in the United Kingdom’, in Bull, M.J. and Newell, J.L. (eds.), Corruption in Contemporary Politics (Basingstoke: Palgrave Macmillan).

    Google Scholar 

  • Dorey, P. and Denham, D. (2016), ‘“The Longest Suicide Vote in History”: The Labour Party Leadership Election of 2015’, British Politics, 11(3): 259–282.

    Article  Google Scholar 

  • Dunleavy, P. (1995), ‘Policy Disasters: Explaining the U.K.’s Record’, Public Policy and Administration, 10(2): 52–70.

    Article  Google Scholar 

  • Duverger, M. (1954), Political Parties (London: Methuen).

    Google Scholar 

  • Electoral Commission. (2003), Attitudes Towards Voting and the Political Process in 2003. Available at https://www.ipsos-mori.com/Assets/Docs/Archive/Polls/electoralcommission2.pdf, accessed 22/08/2019.

  • Electoral Commission. (2004), The Funding of Political Parties: The Way Forward. Available at http://www.electoralcommission.org.uk/__data/assets/pdf_file/0005/163238/The-funding-of-political-parties-report-and-recommendations-December-2004.pdf, accessed 22/08/2019.

  • Electoral Commission. (2013), A Regulatory Review of the UKs Party and Election Finance Laws: Recommendations for Change. Available at http://www.electoralcommission.org.uk/__data/assets/pdf_file/0008/157499/PEF-Regulatory-Review-2013.pdf, accessed 22/08/2019.

  • Epstein, L.D. (1967), Political Parties in Western Democracies (New York: Praeger).

    Google Scholar 

  • Ewing, K.D. (2016), Evidence to the Select Committee on Trade Union Political Funds and Political Party Funding Inquiry, 11 February. Available at http://www.parliament.uk/documents/lords-committees/Trade-Union-and-Party-Funding/Trade-Union-Party-Funding-Committee-evidence-volume.pdf, accessed 22/08/2019.

  • Fisher, J.T. (2000), ‘Party Finance and Corruption: Britain’, in Williams, R. (ed.), Party Finance and Political Corruption (Basingstoke: Macmillan).

    Google Scholar 

  • Fisher, J.T. (2003), ‘Regulating Politics: The Committee on Standards in Public Life’, in Fisher, J., Denver, D. and Benyon, J. (eds.), Central Debates in British Politics (London: Routledge).

    Google Scholar 

  • Fisher, J.T. (2009), ‘Hayden Phillips and Jack Straw: The Continuation of British Exceptionalism in Party Finance’, Parliamentary Affairs, 62(2): 298–317.

    Article  Google Scholar 

  • Fisher, J.T. (2011), ‘State Funding and Political Parties: Truths, Myths and Legends’, in Young, L. and Jansen, H.J. (eds.), Money, Politics and Democracy: Canada’s Party Finance Reforms (Vancouver: University of British Colombia Press).

    Google Scholar 

  • Fisher, J.T. (2015a), ‘Britain’s “Stop-Go” Approach to Party Finance Reform’, in Boatright, R.G. (ed.), The Deregulatory Moment? A Comparative Perspective on Changing Campaign Finance Law (Ann Arbor: University of Michigan Press).

    Google Scholar 

  • Fisher, J.T. (2015b), ‘Party Finance: The Death of the National Campaign’, in Geddes, A. and Tonge, J. (eds.), Britain Votes 2015 (Oxford: Oxford University Press)

    Google Scholar 

  • Flinders, M. (2012), ‘The Demonization of Politicians: Moral Panics, Folk Devils and MPs’ Expenses’, Contemporary Politics, 18(1): 1–17.

    Article  Google Scholar 

  • Garland, J. (2016), ‘A Wider Range of Friends: Multi-speed Organising during the 2015 Labour Leadership Contest’, The Political Quarterly, 87(1): 23–30.

    Article  Google Scholar 

  • Ghaleigh, N.S. (2012), ‘The Regulator: The First Decade of the Electoral Commission’, in Ewing, K.D., Rowbottom, J. and Tham, J-C. (eds.), The Funding of Political Parties: Where Now? (London: Routledge).

    Google Scholar 

  • Gwyn, W.B. (1962), Democracy and the Cost of Politics in Britain (London: Athlone Press).

    Google Scholar 

  • Hardman, I. (2013), Interview on Sunday Politics, First Broadcast BBC One, 14 July.

    Google Scholar 

  • Hough, D. (2013), Corruption and Governance (Basingstoke: Palgrave Macmillan).

    Book  Google Scholar 

  • Kirchheimer, O. (1966), ‘The Transformation of the Western European Party Systems’, in LaPalombra, J. and Weiner, M. (eds.), Political Parties and Political Development (Princeton: Princeton University Press).

    Google Scholar 

  • Koß, M. (2011), The Politics of Party Funding: State Funding to Political Parties and Party Competition in Western Europe (Oxford: Oxford University Press).

    Google Scholar 

  • Levi, M. (1997), ‘A Model, a Method, and a Map: Rational Choice in Comparative Historical Analysis’, in Lichbach, M. and Zuckerman, A.S. (eds.), Comparative Politics: Rationality, Culture, and Structure (Cambridge: Cambridge University Press).

    Google Scholar 

  • Levy, L.M. (2008), A Question of Honour: Inside New Labour and the True Story of the Cash for Peerages Scandal (London: Simon and Schuster).

    Google Scholar 

  • Lodge, M. and Hood, C. (2002), ‘Pavlovian Policy Responses to Media Feeding Frenzies? Dangerous Dogs Regulation in Comparative Perspective’, Journal of Contingencies and Crisis Management, 10(1): 1–13.

    Article  Google Scholar 

  • Morgan, K.O. (1979), Consensus and Disunity: The Lloyd George Coalition Government, 1918–1922 (Oxford: Clarendon Press).

    Google Scholar 

  • Neumann, S. (1956), ‘Towards a Comparative Study of Political Parties’, in Neumann, S. (ed.), Modern Political Parties: Approaches to Comparative Politics (Chicago: University of Chicago Press).

    Google Scholar 

  • Oliver, D. (1997), ‘Regulating the Conduct of MPs: The British Experience of Combating Corruption’, in Heywood, P. (ed.), Political Corruption (Oxford: Blackwell).

    Google Scholar 

  • Phillips, H. (2010), Evidence to the Committee on Standards in Public Life, 8 July. Available at http://web.archive.org/web/20120120153240/http://www.public-standards.org.uk/Library/All_public_hearing_transcripts_for_report_publication_21_11_11.pdf, accessed 22/08/2019.

  • Phillips, H. (2014), ‘Party Funding’, in Clarke, C. (ed.), The ‘Too Difficult’ Box: The Big Issues Politicians Can’t Crack (London: Biteback).

    Google Scholar 

  • Piccio, D.R. and van Biezen, I. (2015), ‘More and More Inclusive Regulation: The Legal Parameters of Public Funding in Europe’, in Boatright, R.G. (ed.), The Deregulatory Moment? A Comparative Perspective on Changing Campaign Finance Laws (Ann Arbor: University of Michigan Press).

    Google Scholar 

  • Pierson, P. (1993), ‘When Effect Becomes Cause: Policy Feedback and Political Change’, World Politics, 45(4): 595–628.

    Article  Google Scholar 

  • Pierson, P. (2000), ‘Increasing Returns, Path Dependence, and the Study of Politics’, The American Political Science Review, 94(2): 251–267.

    Article  Google Scholar 

  • Pinto-Duschinsky, M. (1981), British Political Finance 1830–1980 (Washington, DC: American Enterprise Institute for Public Policy Research).

    Google Scholar 

  • Power, S. (2017), ‘The British Party Funding Regime at a Critical Juncture? Applying New Institutional Analysis’, Politics, 37(2): 134–150.

    Article  Google Scholar 

  • Scarrow, S.E. (2004), ‘Explaining Political Finance Reforms: Competition and Context’, Party Politics, 10(6): 653–675.

    Article  Google Scholar 

  • Seaward, P. (2010), ‘Sleaze, Old Corruption and Parliamentary Reform: An Historical Perspective on the Current Crisis’, The Political Quarterly, 81(1): 39–48.

    Article  Google Scholar 

  • Stratton, A. and Allen, P. (2010), Election 2010: Nick Clegg’s Negotiating List. Available at https://www.theguardian.com/politics/interactive/2010/may/11/election-2010-coalition-nick-clegg, accessed 22/08/2019.

  • van Biezen, I. and Kopecký, P. (2014), ‘The Cartel Party and the State: Party State Linkages in European Democracies’, Party Politics, 20(2): 170–182.

    Article  Google Scholar 

  • vanHeerde-Hudson, J. (2011), ‘Newspaper Reporting and Public Perceptions of Party Finance in Britain: Knows Little, Learns Something?’, Journal of Elections, Public Opinion and Parties, 21(4): 473–495.

    Article  Google Scholar 

  • vanHeerde-Hudson, J. and Fisher, J. (2013), ‘Parties Heed (with Caution): Public Knowledge of and Attitudes Towards Party Finance in Britain’, Party Politics, 19(1): 41–60.

    Article  Google Scholar 

  • Webb, P.D., Poguntke, T. and Scarrow, S. (2017), ‘Conclusion: Assessing the Impact of Party Organization’, in Scarrow, S., Webb, P. and Poguntke, T. (eds.), Organizing Political Parties: Representation, Participation and Power (Oxford: Oxford University Press).

    Google Scholar 

  • Young, L. (2015), ‘Shaping the Battlefield: Partisan Self-Interest and Election Finance Reform in Canada, 2003–2014’, in Boatright, R.G. (ed.), The Deregulatory Moment? A Comparative Perspective on Changing Campaign Finance Laws (Ann Arbor: University of Michigan Press).

    Google Scholar 

Download references

Author information

Authors and Affiliations

Authors

Corresponding author

Correspondence to Sam Power .

Rights and permissions

Reprints and permissions

Copyright information

© 2020 The Author(s)

About this chapter

Check for updates. Verify currency and authenticity via CrossMark

Cite this chapter

Power, S. (2020). The Institutional Evolution of the Party Funding Regime in Great Britain. In: Party Funding and Corruption. Political Corruption and Governance. Palgrave Macmillan, Cham. https://doi.org/10.1007/978-3-030-37580-5_6

Download citation

Publish with us

Policies and ethics