Monday, 21 July 2008

The Labour party have more financial problems

I have blogged many times about the Labour party's financial problems. Now I read in the Independent that
"Labour is to delay repaying its "cash for honours" loans for up to a decade as it attempts to plug a £16m black hole in its finances.

Senior officials are holding urgent talks with wealthy backers about restructuring the debts as the party struggles to stave off a financial crisis. Loans worth millions of pounds are due for review by the end of October – several of them from men who became embroiled in the honours police investigation after they were nominated for peerages.

Party bosses say their wealthy lenders will agree to put loan repayments on hold for a year to allow the debts to be restructured so they can be paid back over between seven and 10 years."

Some questions... Is the Labour party actually insolvent? How long before the Labour government try to introduce state funding for political parties as a way of rescuing their finances?

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