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Summary Party Funding Scandals in the UK Political System

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This document covers party funding scandals which have shaped UK politics, perfect examples to be used in A Level examinations. The document also includes subsequent legislation changes.

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Scandals

●​ Cash for Questions 1990s (Conservatives)
●​ Cash for Honours 2006
●​ MP Expenses Scandal 2009
●​ In 2018, Leave.EU fined £20,000 for Overspending during the 2016 EU Referendum
●​ COVID Contracts 2020
●​ Keir Starmer Freebiegate 2024
●​ Nigel Farage £5,000,000 2024

Cash for Questions 1990s
In the 1990s, the Conservatives accepted cash payments from the owner of Harrods, to ask
specific questions at PMQs. This was highly undemocratic, and contributed to the significant
Conservative loss in 1997.
This scandal also contributed to the establishment of the Political Parties, Elections, and
Referendums Act 2000.

Cash for Honours 2006
Under Tony Blair, the Labour Party bestowed peerages onto wealthy individuals in exchange
for donations. This is highly undemocratic, as it bestows power based on wealth, rather than
political legitimacy. This undermines the democratic system.
This scandal exposed a loophole in the PPERA 2000, where loans to parties didn’t have to
be declared, unlike direct donations.
This was also the first time a standing PM was questioned by the police. He was also
questioned by the Electoral Commission. Lord Levy was arrested for involvement.

MP Expenses Scandal 2009
MPs had been claiming expenses for unrelated purchases - like a duck house - over the
years leading up to 2009. A Freedom of Information request revealed this.
This invoked widespread public anger, as public taxes were funding unnecessary claims. A
number of MPs resigned, and expenses were repaid.

Leave.EU Funding
In 2016, Leave.EU overspent on campaigning for the ‘Leave’ cause during the Brexit
referendum, violating the Political Parties, Referendums, and Elections Act 2000. They were
caught after the referendum was already completed by the Electoral Commission (a good
argument for why the Electoral Commission is NOT effective).
They were subsequently fined £20,000 for overspending, but the damage was potentially
already done, as their campaign had been successful.

COVID Contracts 2020
A Conservative Party donor received a contract to supply the government with PPE during
the COVID pandemic. This contract was ultimately determined to be undemocratically
bestowed, as it had been secured thanks to financing the party.


Keir Starmer Freebiegate 2024

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August 14, 2026
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