read the news // live the culture

Laid bare: how the Conservatives are financed

  Saturday 1st October 2011

New research by the Bureau of Investigative Journalism shows that 27% of Conservative Party funding came from hedge funds, financiers and private equity firms.

David Cameron's party has received more than 50% of its funding from the financial services sector.

David Cameron's party has received more than 50% of its funding from the financial services sector. Photo: The PM Office.

The proportion of donations to the Party from the entire financial sector reached 51.4% this year, an increase of 0.6%. This means that financial influence over the Tories has increased in the last 12 months.

This raises concerns as some of these financial parties would profit from financial instability and could influence government policy.

Although there is no evidence to suggest that any donor has made personal appeals to the Party, the Conservatives have introduced several measures that could benefit its backers:

  • They promised to reduce corporation tax from 28% to 23% by April 2014 for companies who exceed annual profits of £1.5m.
  • They made foreign branches of UK resident companies exempt from corporation tax.
  • They allowed large companies in tax havens  to pay a reduced tax rate of 5.75%
  • They also oppose a Europe-wide financial transaction tax.

Dr. Stuart Wilks-Heeg, executive director of Democratic Audit, said that the situation was a troubling one:

“The coalition agreement included clear undertakings to take big money out of politics, but there appears to be no sign of this happening. What this study tellingly reveals is the scale of the Conservative Party’s reliance on a variety of City interests at a time when the Conservative-led government is attempting to kick banking reform into the long grass.”

 

Tom Chapman

.

  Log in  

More about the author

avatar

Read more from...

Share this story


  • Pin It
  • Share on Google+
  • Reddit
  • Stumble
  • LinkedIn

Latest articles

Teachers’ unions meet to discuss calls for strike action over pay and pensions
Teachers’ unions meet to discuss calls for strike action over pay and pensions

Britain’s two biggest teachers’ unions are meeting today, for their annual Easter conference, to hear calls for [read more]

First arrest made in Heartbleed hack case
First arrest made in Heartbleed hack case

A 19-year-old man from Canada has been arrested in relation to the computer security breach Heartbleed. Stephen Arthuro [read more]

Shocking 163% rise in food bank use‏
Shocking 163% rise in food bank use‏

Almost a million people received emergency ration supplies from food banks in the past year – a shocking rise of 163% [read more]

UK beaches top charts with excellent water quality
UK beaches top charts with excellent water quality

The Good Beach Guide, compiled by the Marine Conservation Society (MSC), has rated 73 per cent of the UK beaches with [read more]

Liverpool marks 25th anniversary of Hillsborough victims
Liverpool marks 25th anniversary of Hillsborough victims

The city of Liverpool paid its tribute to the 96 football fans who died in Hillsborough tragedy 25 years ago at the [read more]

Archives