Monday, August 21, 2006

Labour Party: financial crisis

They sold all those peerages. But somehow New Labour still can’t make ends meet. This from the Daily Telegraph this morning:

Jobs, pay fears as Labour's debts pile up
By Katherine Griffiths and Christopher Hope

Labour insiders fear that the party is facing a cash crisis so serious that it may not be able to pay its 230 employees next month.

In addition, the high-value fund-raising department at the heart of the loans for peerages scandal is to be disbanded and several of its key employees will be made redundant.

The party is also understood to be looking for voluntary redundancies among staff at its northern regional office in Newcastle to cut costs.

Some sources suggested that the party was considering a £1,000-a-head whip-round among its MPs or leaning on unions such as Unison to provide more money.

The party is now 'woefully insolvent', a chartered accountant tells the Torygraph.

As an expert commentator on Labour Party finances, I’ll hopefully have thought of something clever to say about all this after returning from a ‘working lunch’. Check back about four. In the meantime … any thoughts, kids?

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