Labour cash crisis as Keir Starmer diverts funds after ‘demanding’ financial period for the party
- Keir Starmer has demanded his shadow cabinet divert donations to Labour HQ
- Labour was £5.3 million in deficit last year as 91,000 members left the party
- Redundancies and legal battles with ex-staff made up most of the rest of the loss
Keir Starmer has demanded his shadow cabinet divert donations made to their personal offices to Labour HQ amid concerns about the party’s financial affairs.
Labour was £5.2million in deficit at the end of last year amid what treasurers described as a ‘demanding’ period. More than half the deficit came from 91,000 members leaving the party.
Redundancies and legal battles with ex-staff made up most of the rest of the loss, while higher donations and investment income limited the damage.
Keir Starmer has demanded his shadow cabinet divert donations made to their personal offices to Labour HQ amid concerns about the party’s financial affairs
Sources told the i newspaper that the ruling from Sir Keir was not an attempt to shore up the party’s finances – but to prepare for a possible election.
Labour’s fraught relationship with trade unions has also been mooted as a reason for Sir Keir wanting more money funnelled into the party’s HQ. The value of their donations is said to have dropped from £12.5million in 2020 to £7million in 2021.
The donations are thought to equate to around 58 per cent of Labour’s income. A party spokesman said: ‘Labour is the only party offering solutions to the cost of living emergency, with our fully-funded plan to freeze energy bills this winter.’
According to i news, before Sir Keir became leader, 88 per cent of Labour’s donations came from the Trade Union movement, compared to 58 per cent now.
Both the Unite and GMB unions have pledged to review their donations to the Labour party after tens of thousands of members who joined under Jeremy Corbyn’s leadership left after becoming disillusioned with Sir Keir’s more moderate outlook.
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