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Democratise party funding

“Party leader are forced to lap dance for corporate elites to win elections. Ban big donations and let citizens allocate public funding to parties.

2. How does it fit with Compass’ core beliefs of equality, solidarity, democracy, freedom, sustainability and well being?

More democracy is the best cure for the ills of democracy. Citizen allocated funding could diminish the main parties domination of the ballot box and reduce parties dependency on wealthy patrons. Under this proposal (taken from the Power Inquiry) donations from individuals would be capped at 10K with increased state funding for parties allocated by citizens. At a general election voters would be able to tick a box allocating a £3 donation to party of their choice used by that party for local activity.
Unallocated funds would be reabsorbed back in to mainstream public funding.

3. How does it build the institutions of social democracy, like social groups and collective and cooperative forms of ownership and control?

The proposal would help build a more outward facing labour party, give greater control to ordinary members and force it into healthy competition for funds with greens, the radical left and other non-aligned but progressive forces. It would also strengthen local democracy by ring fencing funds for use at the local rather than national level.

4. How much will it cost or raise and where will any cost come from?

If a voucher was a set at £3 per voter, assuming all 30 million eligible to vote did so, it would raise a pot of £90 million. Funds would come from increased state funding for parties.

5. Which groups in the electorate are likely to support or oppose this measure? Is there any polling evidence you have on this?

Support: those in safe seats, those unaligned to the main parties,
Oppose: the tax payers alliance, those opposed to state funding of parties

6. Is there a place or country where it’s worked? Please provide some information.

Hasn’t been tried

7. What are the three main arguments in favour/against it?

For
1) Allows citizens to use vote to support small/new parties
2) Creates strong incentive for parties/candidates to engage with voters if a party secured 10,000 votes locally they’d raise 30K to spend locally.
3) Overcomes some objections to state funding of parties - voters can choose not allocate vouchers & have it reabsorbed in to mainstream spending

Against
1)Could end up putting money in pockets of extremist parties
2)It’s a diversion if it’s insn’t combined with PR
3) Alienates those that oppose state funding of political parties

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