Labour must

Labour must ‘reform or die’

Labour must ‘reform or die’

Labour is being told to reform or die after a survey was released showing most Tory MPs expect to see its links with the unions destroyed in the first term of a Conservative government.

The survey, carried out by democratisation thinktank Unlock Democracy on behalf of the Joseph Rowntree Reform Trust showed 84 per cent Conservative back-benchers support the “nuclear option” on party funding, by capping trade union contributions to Labour at £50,000 per year.

Given the reliance Labour has on union funding, such a move would decimate the party.

“These figures show that there is a real hunger amongst Conservative backbenchers for the nuclear option of party funding reform, smashing the existing relationship between the trade union movement from the Labour party,” said Unlock Democracy director Peter Facey.

“Labour faces a stark choice: reform now, on its own terms, or have draconian measures forced upon it by a future Conservative government.”

The survey showed a strong desire for funding reform on the Tory benches with 78 per cent of Conservative MPs saying the party would legislate on the subject in its first term.

There may be a solution for Labour, however. Labour backbenchers supported a system of ‘individualisation’ – where individual union members donations are given to the party through a system of informed consent – by three to one.

“The dynamic relationship between individuals and the party has been lost in recent years as the bigger unions have merged,” Mr Facey said.

“Individualisation would thus help Labour get back to its roots. But this option has been rejected at every stage by the Labour government.”

Cross-party efforts to make progress on party funding hit a brick wall when the main parties refused to budge on their source of capital.

Labour has historically relied on the unions, and even more so now that private donations have dried up in the wake of the cash-for-honours controversy.

The Conservatives have tended to rely on big individual donors such as British-born tycoon Michael Ashcroft.