"Labour chiefs have until the end of this month to plug a £4 million hole in the party’s finances and avert the possibility of a formal declaration of bankruptcy....
Auditors are due to sign off the party’s accounts soon after the end of May, but there are fears that they will refuse to do so and instead declare the party insolvent.
Arrangements have been made to account for most of the party’s £21 million debt, through negotiations with the Co-op Bank and rescheduling deals done with the donors of the controversial loans which led to the “cash-for-honours” affair.
But officers have identified a gap in the balance sheet of around £4 million which must be closed in order to satisfy the auditors, either by cash in the bank or certifiable promissory notes."
Oh dear, oh dear, oh dear.
As I said yesterday:
"Now look out for the Labour Party suggesting that the state funding of political parties is the best solution to the "democratic deficit" in this country. They could use their large majority to get this into place before the next election and will choose to base the calculations for the funding on an average of the votes received at the last three elections so as to avoid the full impact of the coming election."
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