Liberal Democrat ministers asked for &#39;tithe&#39; as party faces financial crisis

Sunday, February 27, 2011

Liberal Democrat ministers asked for 'tithe' as party faces financial crisis

�40,000 voluntary payment from Lib Dem ministers to help close �1.25m gap left in party finances by move into coalition

Nick Clegg is asking Liberal Democrat ministers to pay 10% of their government salaries to the party as a "tithe" to help it face a financial crisis.

The party hopes to raise �40,000 from the voluntary charge, which would affect only ministerial income, according to new Lib Dem accounts.

Details of the "tithe", requested of all 19 Lib Dem ministers, emerged in submissions to the party's spring conference in Sheffield next month, which show the party ran up a deficit of �1.25m in 2010, having had a surplus of �174,000 in 2009.

A Lib Dem spokesman said: "Our ministers receive support from party staff and with their agreement it was decided that it is appropriate they contribute to the party's funds."

The deficit occurred as a result of the loss of �1.75m of "Short money", the government grant that helps opposition parties fund their administrations. This was withdrawn as soon as the Lib Dems entered the coalition in May last year. Some of the party's MPs have argued that retaining the money should have been part of the coalition agreement.

Last year the Lib Dems had to lay off 20 staff after the election, having spent �100,000 on an emergency conference to rubber-stamp the coalition deal.

The accounts show that the party is planning to increase fundraising by �679,000 this year ? a task that could prove difficult given the decline in its popularity since entering coalition.

The accounts show it has set aside no campaigning funds for this year, despite facing a crucial test in May's council election and elections to the Scottish and Welsh Assemblies.

"We have launched an ambitious but achievable fundraising programme and we are confident of our ability to raise funds from other sources and expect to be in surplus by the end of the year," the party spokesman said.

Toby Helm

guardian.co.uk © Guardian News & Media Limited 2011 | Use of this content is subject to our Terms & Conditions | More Feeds