Funding of Political Parties (Edexcel A Level Politics): Revision Note

How are UK political parties funded?

• Political parties need money to function, campaign and compete in elections

• The UK has a mixed funding model involving private donations, membership fees and limited public funding

• This has created ongoing debates about fairness, influence and transparency

Funding sources

Membership subscriptions

• Members pay annual fees

• Important for Labour, which gained over £18 million from membership in 2024

Large private donations

• Wealthy individuals and companies can donate significant sums

  • E.g., Businessman Frank Hester and his company TPP gave the Conservatives £15 million for the 2024 general election

Trade union donations

• Especially important for Labour

• Major unions (Unite, GMB, Unison) each donate around £1 million annually

Public funding

• No public money for general election campaigning

• But opposition parties receive:

  • Short Money, to support parliamentary work

  • Policy Development Grants, for research and policy work

• This funding is distributed by the Electoral Commission

Debates on state funding

• State funding refers to political parties receiving money from the public purse to support their operations, policy development and election activity

  • The UK currently uses a limited model called short money

• This has created debate about whether expanding state funding would make politics fairer and more transparent, or whether it would waste public money and distance parties from voters