The Labour Party still owes almost £19 million to creditors, despite a series of cuts and attempts to impose greater financial discipline.

The party managed to reduce its debts from £24.5 million last year but Jack Dromey, the party’s treasurer, admitted yesterday: “Significant problems remain.” According to its accounts, the cash-strapped party finished last year with debts of £18.9 million, although it had a surplus of £7.5 million and £5.8 million in cash.

Labour paid off an £854,000 loan from Sir Christopher Evans – the biotech tycoon who was arrested, but not charged, during the cash-for-peerages” police inquiry – and partially repaid a loan from Gordon Crawford, the software millionaire.

The party still owes £15 million to other businessmen, including Sir Gulam Noon, the curry magnate, and Rod Aldridge, the former boss of Capita, the outsourcing firm, who resigned after it emerged that he had given cash to Tony Blair. On top of that is a loan from Sir David Sainsbury.

The Prime Minister recently announced that the party would have no spring conference next year in a cash-saving measure. Donations from wealthy businessmen have slowly dried up, forcing Labour to rely on trade unions for funding.

According to the Electoral Commission, the unions, including Unite and the GMB, contributed between them 92.6 per cent of the party’s total funds in the first three months of this year.

Meanwhile, David Cameron slashed the Conservatives’ debts and boosted staff numbers as he readied the party for a general election. Tory accounts showed a reduction in debt from £9 million to £7.75 million during 2007 and a surplus of £1.57 million.

Times Recommends

• Tree stump 'shows image of Virgin Mary'
• BBC drops Strictly judge for younger model
• Trafalgar Square 'reduced to a spectacle'