Fairness encouraged through political party donation cap

Trade union affiliation fees could be regarded as a collection of individual donations providing the members individually opt-in to the fee.

The cap would have a significant impact on the income of the major parties, making campaigning much less dependent on a small number of wealthy supporters.

Inevitably a compensating increase in support for parties from public funds would be required.

The public funding should depend on the number of votes secured in the previous election, at the rate of £3.00 a vote in Westminster elections and £1.50 a vote in devolved and European elections. This proposal would result in an annual support of some £23 million, equivalent to about 50p per elector per year.

Income tax relief, similar to Gift Aid, should be available on donations of up to £1000 and on membership fees to political parties.

Another key recommendation, among 24 made in the report, is that the existing limits on campaign spending in the period before an election should be cut by the order of 15%.

The proposals will create challenges for the Electoral Commission, and the Committee suggests the recommendations are implemented in time for the start of the next Parliament in 2015. Two members representing political parties dissented from some of the recommendations.

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