Labour’s financial woes exposed as shadow cabinet ministers told to stop fundraising for themselves

The Labour Party has found itself in a perilous financial position after membership plunged under Sir Keir Starmer.

According to i News reports, Starmer has been forced to suspend shadow Cabinet ministers from fundraising for themselves in a bid to centralise the party’s finances.

Reports that trade unions could be clawing back their donations will also be a source of concern for the party, with job cuts on the cards.

Before Sir Keir became leader, 88 per cent of Labour’s donations came from the Trade Union movement, according to an analysis from the New Statesman.

However, now union donations only account for 58 per cent of the party’s receipts.

According to the Electoral Commission, Labour received £38 million in donations across 2020 and 2021, with Starmer as the new leader of the party.

Between 2017 and 2018, Labour had received £44.5 million from donors under Jeremy Corbyn’s leadership, including £23 million from trade unions.

Donations from Trade Unions have steadily declined during Starmer’s period as Labour leader, with the party accepting £7 million in donations last year, and £12.5 million the year previously.

So far this year, the party has received £3.5 million from unions and £1.5 million from individuals. Labour raised more from individuals in 2021 than they had done in any year since 2017.

Jack Peat

Jack is a business and economics journalist and the founder of The London Economic (TLE). He has contributed articles to VICE, Huffington Post and Independent and is a published author. Jack read History at the University of Wales, Bangor and has a Masters in Journalism from the University of Newcastle-upon-Tyne.