Britain’s Prime Minister Keir Starmer (Image: POOL/AFP via Getty Images)
The Electoral Commission, the body responsible for oversees party funding in the UK, is reviewing a £30,000 donation to a Labour-affiliated organisation as a “potential regulatory concern”.
The matter relates to a cash payment from the European Parliament-funded Foundation for European Progressive Studies (FEPS), which is linked to the Party of European Socialists, to the Labour-aligned think tank the Fabian Society. FEPS denies “directly or indirectly funded the UK Labour Party or any other political party”.
Last week, the EU sanctioned FEPS, which describes itself as the “think tank of the progressive political family at EU level”, for making the donation in 2023, describing it as an “indirect funding of the UK Labour Party”.
The Authority for European Political Parties and European Political Foundations subsequently slapped the Foundation with the hefty fine.
The UK Electoral Commission has now raised concerns about the donation, although it has not launched a formal investigation.
Nigel Huddleston described the donation as ‘simply scandalous’ (Image: PA)
A spokesman explained: “We are considering this information in line with our regulatory remit.” Express.co.uk understands the regulatory concerns in question have not been raised with the Labour Party.
Nigel Huddleston, co-chairman of the Conservative Party, criticised the donation, telling The Telegraph: “Brexit was a liberating moment for this country, and to see Labour groups taking wads of cash from EU groups is simply scandalous.
“The British public demanded we no longer kowtow to Brussels diktats, and will rightly be shocked.
“If Labour are serious about Brexit, and are not planning to undo the progress made to further our country’s independence from Brussels, they must commit to taking no further funding from this group.”
UK law places restrictions on donations to party members’ associations for political activities, including policy development.
In accordance with Electoral Commission rules, donations of more than £500 must come from “permissible sources” and those exceeding £11,180 must be declared.
The Fabian Society used the funds for a conference and book launch in January 2023, which was attended by Labour politicians.
A statement on its website says: “We are affiliated to the Labour Party and work very closely with Labour politicians.”
FEPS is largely funded by the European Parliament (Image: Getty)
“Every Labour prime minister has been a Fabian”, it adds.
The EU’s watchdog said FEPS was fined “because of indirect funding of the UK Labour Party and because of exceeding the task limitations set for European political foundations”.
Such foundations are barred from contributing to party election funds.
A FEPS spokesman said: “FEPS neither directly nor indirectly funded the UK Labour Party or any other political party. We have no such intentions or capacities and do not engage in party financing either inside or outside the EU. We regret that our arguments did not convince the APPF.
“The Authority pointed out an event which was organised with the Fabian Society, two years before the final deadline to have a general election in the UK, and 18 months before it was actually held. It was attended by both EU and UK politicians, among others. Our preoccupation was to promote a European debate in London with EU experts and politicians. The Fabian Society is older than the Labour Party and it is not controlled by it. We believe it is a European interest to use our channels to keep British partners engaged in EU matters and close to the EU.
“The APPF decision refers to indirect funding, as they stressed that the UK Labour has benefitted from a book and a conference led by FEPS in collaboration with the Fabian Society. FEPS fully recognises the APPF’s purpose and mission and respects its decision. FEPS pays utmost attention to the full respect of the provisions enshrined in the Regulation 1141/2014. Our robust internal procedures, already in place, are aimed at ensuring that our activities are fully compliant.
“As a political foundation, FEPS cannot be expected to be non-political, and it is certainly within the remit of FEPS’ mission to provide advice, guidance and input for social-democratic policymakers and organisations. All our books and conferences produced and implemented with our members are intended to benefit the progressive movement and promote a healthy European democracy. Our advice and political talks involve politicians and attempt to give an edge to progressive values. Our book “Leading the Way – Lessons for Labour from Europe”, as well as the conference were produced outside the electoral campaign period. The book is analytical, not campaign material.
“Since the APPF is responsible for registering, controlling, and imposing sanctions on European Political Parties and European Political Foundations, on the basis of its own interpretation of the Regulation, and without the possibility of appeal, FEPS will continue engaging with the APPF whenever clarification is needed, ideally ex ante rather than ex post. If needed, we will further review our activities and practice to eliminate the risk of non-compliance and avoid the wrong perception.”
A Fabian Society spokesperson said: “The Fabian Society is an independent think tank affiliated to the Labour Party.
“The Fabian Society and FEPS jointly organised a conference and published a research report in early 2023. No funding was provided to the Labour Party.
“We have not been contacted by the Electoral Commission regarding our work with FEPS.
“All of our research findings and the content of our events are independent from the Labour Party.
“We have always and will always act with full transparency around the partners we work with. That is why we received an A rating from Open Democracy.”
