State funding of political parties?

Any limitation on the rights of parties to accept funds, disclosed or undisclosed, increases the arguments in favour of state funding of political parties. State funding in Europe is an accepted commonplace. Austria, Denmark, France, Germany, Greece, Italy, Portugal and Spain all have publicly funded political parties. This issue is, however, contentious in the United Kingdom on a number of grounds. First, it is argued that state funding potentially undermines the cohesiveness of the party, and introduces the possibility of politically inspired changes to the bases of funding. Moreover, it is argued that state funding would encourage the formation and growth of extremist parties. Opposition is also voiced on the constitutional basis that, to compel citizens to finance political parties, through taxation, especially those with which they have no sympathy, would cause dissent. Set against these objections, however, are the benefits which would accrue from public funding. First, depending on the method used to calculate entitlement, greater equality and fairness would be achieved among the political parties. Secondly, party political finances would become most clearly a matter of open public record. Thirdly, the elimination of contributions from individuals and organisations would eradicate the public’s suspicions about the integrity of party political finance and thus enhance confidence in the political process. Fourthly, the ability of parties to conduct their official duties would be enhanced by improving the level of contributions made. The Houghton Committee commented in its 1976 report that, at a local level, party organisation was weak and ‘generally exists on a pitifully inadequate scale of accommodation, equipment, trained staff and resources’. Thus, improved funding would facilitate an enhanced level of efficiency at the grass roots level of democracy.