Wednesday, June 10, 2026

Events | 2010.08.21

The difficulties of political donations

From David Lloyd George to the Trade Union Baron, a brief history of party political donors

David Lloyd George

After the first world war the Lib-Con coalition PM ruthlessly exploited lax rules which allowed rich men to buy honours. He used political fixer Arthur Maundy Gregory to make deals, worth at least £30m at today\'s prices for the Liberals and Tories, plus £3m a year for himself. In 1933 Gregory became the only person jailed for selling peerages.

The Lavender List

Harold Wilson\'s resignation honours list in 1976, written on lavender notepaper by his political secretary, Marcia Williams (who became Lady Falkender on the list), caused a scandal because it contained names of shady business associates who had made donations. Lord Kagan was later jailed for corruption while Sir Eric Miller took his own life. Wilson was forced to take this money, aides said later, because the unions did not stump up.

Margaret Thatcher

The Tory leader was lucky to have the goodwill of industry during Britain\'s economic decay and the fundraising talent and amiability of Alistair McAlpine, later Lord McAlpine of West Green. A scion of the building firm, he wined and dined wealthy friends, later luring them to write large cheques. In an unregulated era both Thatcher and John Major solicited financial support from wealthy foreigners, including Hong Kong tycoons.

The Lib Dems\' big donor

Reg Clark, then party treasurer, introduced Charles Kennedy to Michael Brown, an apparently rich entrepreneur, before the 2005 election. Brown eventually gave £2.4m, the largest donation to cash-strapped Lib Dems in the postwar era. Clark faced accusations of conflict of interest, while Brown, the legality of whose donation was also challenged, was jailed for fraud. The money was never repaid.

Lord Cashpoint

Tony Blair was determined not to be outspent by the Tories. He persuaded his tennis partner, Michael Levy, now Lord Levy, to use his skills as a charity fundraiser to help Labour. By 2005 Levy wanted to quit, but Blair persuaded him against his better judgment to follow the Tories through a loophole in Labour\'s own anti-sleaze laws by raising undeclared loans, not donations. It led to the loans-for-honours scandal.

The Trade Union Baron

Throughout Labour\'s century of struggle against well-funded Tories with many rich backers, its fundraisers of last resort have always been the big trade unions, often as reluctant to give as Labour leaders were to ask for fear of being "in the unions\' pockets".

Michael White

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http://www.guardian.co.uk/politics/2010/aug/20/political-donations-donors

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