Rajeev Syal
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Labour has resumed a secret courtship of influential donors before new funding rules are introduced to cover the party from future sleaze allegations, The Times has learnt.
Labour fears being left behind by the Tories in building up their war chest to fund the next general election. Labour, now £20 million in debt, generated only £580,000 from individual donors in the last quarter of last year, while Tory fundraisers brought in £9.8 million over the same period.
Jon Mendelsohn, Mr Brown’s leading fundraiser, is inviting small businessmen as potential donors to a series of private dinners to mingle with Cabinet ministers. They have been told that they could help to shape the next Labour manifesto.
Mr Mendelsohn is one of a number of people who face police questions over donations totalling £600,000 by a property developer that were made through third parties in apparent breach of the law.
Some Labour backbenchers have expressed concern to The Times that the dinners could leave the party open to more sleaze allegations.
Mr Brown has yet to announce what safeguards he will introduce to cover the party against future allegations. He asked Lord McCluskey, a retired judge, and the former Bishop of Oxford, Lord Harries, to advise him on internal changes for declaring party donations to avoid a repeat of controversies such as the Abrahams “Donorgate” affair.
One such fundraising event took place at a London hotel last Tuesday. The Times was at the hotel.
Ed Balls, Mr Brown’s close aide and Shaun Woodward, the millionaire minister, met at least nine backers. Guests were sent invitations to the second of such events from Mr Mendelsohn two months ago.
The reason for the meetings, he wrote, was because “the Government is mid-term and in the process of preparing and planning for the next general election” and would appreciate an opportunity to “discuss ideas and campaign proposals”.
One backbencher, Ian Gibson, MP for Norwich North, said: “I find it strange that we are still trying to get money from these sources without any discussion or proposals through the Party’s proper channels. It has led to problems before and here we are following the same route again.”
Last Tuesday’s dinner for 16 was held in a private room at Royal Horse-guards Hotel 150 yards from Downing Street. The Labour Party officials included Chris Lennie, the acting general secretary of the party, who hosted the event, and Mr Mendelsohn. Lord Sainsbury, the Party’s most generous ever donor, and Jon Aisbitt, the City hedge fund executive who gave £250,000 last year, were also present.
Less wealthy guests included Sonny Leong, who donated £2,000 to Alan Johnson’s deputy leader campaign, MT Rainey, an advertising executive, and Simon Fanshawe, the writer and comedian. Most of the guests had given less than £50,000 to Labour.
The first dinner was held at The Dorchester earlier this year. The guest of honour was David Miliband, the Foreign Secretary. One Labour insider said that the party had no choice but to try and attract smaller backers, having lost the interest of a number of big donors since Tony Blair left Government. “We are trying to bag these provincial businessmen while Cam-eron has the City bankers,” he said.
Donations to Labour fell to £581,000 between October and December last year – just a fifth of the £2.8million raised in the previous three months, according to the Electoral Commission. Blame has fallen upon the donorgate affair and Mr Brown’s failure to call the General Election in September.
The Tories generated £9.8million in the last three months of 2007 in donations. Their debts fell to £12.9million. Labour appears to be struggling to copy the Tories’ fundraising model. The party has wiped out £16 million worth of debt since 2006.

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Politics that is all about money means that the vested interest has control. Those who loan or donate the funds to support political parties do it to gain power of the political institutions. Its time to change the political system to one that is corruption free and not just about money.
Jim Wills, Brisbane, Australia
I have some really good advice. LOWER TAXATION and stop wasting public money.
steve tea, manchester, cheshire
Politicians, the world over, just can't seem to grasp the concept, "when contributions begin to dry up - YOU are out of touch".
DanO, Mount Vernon, USA
To Gordon Brown: As a small business, you will not get one single penny from me for your campaign. Do not think you can bleed us to death and then expect our support.
Chantel, Wales,
Labour and socialism (Marxism in NuLabour's case) should be wound up and scrapped as obsolete political artifacts.
We need a non-Political Class party to be elected to aggressively undo the damage to this country. To free up critical funds, we must halt all fees, subsidies and 'charity' (bribes) outside this country and exit the EU. All illegal and unnecessary EU and non-EU immigrants must be ejected to relieve the unsustainable extra strain on the welfare state and our infrastructure.
Sage, Bucks, England
The 'Prudence' of the Labour Party's own finances is merely a reflection of their 'Prudence' with our money and our economy.
Anton Muller, Wakefield,
Well, this Labour government is run by incompetents why should the party be seen as any different ?
Maybe, just maybe, people are now thinking they're not worth a contribution !
Stan(expat), US, USA
So many aspects of the country - finance, health, education, taxation, transport, defence to name a few - are now in such a mess I am not convinced that Labour actually want to win the next election.
Ubi, Edinburgh, UK
I will pay them to move north across the border.
wayne, huntingdon, cambridgeshire
I pity whoever has to form the next government. So much of the country has been reduced to such a mess it will be impossible to rescue it in one term. The state of public finances has been rendered unimaginably bad by our previous Chancellor, now Prime Minister. Prudence with what purpose?
After ten years of the highest burden of taxation in memory public services are on their knees, way beyond any short term resuscitation. Health, education, immigration, taxation, transport, defence to name some. None remotely fit for purpose.
The country has been dumbed down to the point where we are not fit to compete even with what were once our colonies.
What did they do with all the money they taxed and borrowed?
Ubi, Edinburgh, UK
When UKIP were found to have received funds for someone temporally not on the electoral runs, those funds, some £14000 were confiscated, exactly the same should happen to this money. Otherwise one rule for a small party, one rule for Labour.
K W, Bognor Regis, England
Here is a funding option they might try:
"Give us all your money and you will get nothing in return"
Oops! sorry! they already do that with tax.
Peter, London,
Anyone giving money to the Labour Party must be sick.
Frank , Bournemouth, England
Any small business runnning a debt of 20m would be declared bankrupt and shut down. Sorry - I forgot, this is a political party, so the wage and allowance bill for their MPs is funded by the taxpayer, not their sales. So what do they sell? Supposedly management skills for the nation, so how about subjecting party political campaigning to the same rules as any other advertising. Party funding is about generating income from business, so play the game our way and see if you are still around for the next election!
KR, Stockport,
most people fail to see the connection between Labour's policy of increased public sector spending and the its Trade Unions policy of financing the Labour Party.
Most public sector workers are members of trades unions. Union members pay subs to their respective unions. These members are paid wages by the taxpayer. In effect the taxpayer his financing the activities of unions in this country. This is totally unaccpetable and I resent that.
Brown knows this and since 97 has been pumping the public sector which cash he hasn't got. Of course a percentage of this finds its way into the coffers of the unions through members subs which then find its way back into labour party coffers. It stinks.
both entities feed of the state and Brown has been buying union compliance with your money since 97.
with 8 million public sector workers on the payroll you can see how this all adds up and its all paid for from you and me.
they create no wealth but spend yours quite easily
BD MATHERS, birmingham,
Many of the boroughs under Labour administration have or are facing bankruptcy, so why shouldnât the central government face the same dilemma. They have managed to ruin the financial status of individuals, now they are after small businesses and next it will be the turn of the larger businesses. If they think they will be let off, they better think twice. GB is on a war path to get money, which ever way he can and he will ensure that he does, whether you like it or not!!. Well people of this country voted for him (oops - he was given to us without choice - almost forgot, time fly's) and similarly time would have flown by and we would all have forgotten what he has done when he provides election sweeteners!! So NuLab will continue to destroy the country, thus for us all it is 'which ever way but loose'!!!
YT, London, UK
Hello Mr Brown, I've got one pound that hasn't been swallowed by the Council Tax, do you want it? Oh, sorry my local Post Office has closed so I can't get it out. But at least I've still got my health, which is just as well as my local A&E is closed as well, or perhaps someone stole it, but I can't report it because my local Police Station has closed as well, which is better than burning down I suppose because my local Fire Brigade is short of crews. Sorry must rush, I have to put my rubbish out because if I miss it it will another 2 weeks before it's collected.
Roger, Surrey,
Wait for the new "fairer" policy of state funding of political parties to be floated.
Welfare for the party of welfare, tax and control.
Gavin, London, UK
Perhaps Norhern Rock can lend them some money?
Matthew, Espoo,
So Labour can't find any donors - no surprise there! - we can't trust this pack of sleazy parasitic thieves with the country's finances either.
Peter, London,
What would happen if all those who have been lending money to Labour want their money back,could Labour be bankrupted.They are bankrupt of any worthwhile ideas of how to run the country,so why not.
Nigel, wimbledon,
A bankrupt party full of bankrupt ideas.
Cromwell, Leeds, England
Will Gordon Brown now introduce short term honours for these new donors? Say 1 month in the Lords for every £10k!!!
AWilliams, Cradley Heath,
They aren't serious expecting small businesses - the main target of their punitive tax changes - to prop them up? I sincerely hope they are decisively slapped in the face by whoever they ask.
CA, Macclesfield, UK
Gordon Brown hates small business and anyone with an ounce of aspiration to be different with a vengence. He has pursued small businesses to extinction tax wise - and now he thinks they will dig deep to keep Labour afloat???
CA, Macclesfield, UK
Looks like labours finances are in the same state as the countries. Who is the common denominator here? That's right Gordon Brown.
Edward, London,
One can only hope that Labour fail and also fail to have the chance to do anything about it.
Edwin, Bucharest,