Labour’s Credit Crunch

The FT this morning reports that the Labour Party can’t pay back loans made to the party under the Blair / Levy Loans for Lordships scheme. The party

is in emergency talks to renegotiate more than £10m of loans from wealthy businessmen to prevent itself running out of money.

Most of the millionaires who secretly lent money to Labour in the run-up to the 2005 election ought to be repaid in the coming months but the party – which is £20m in the red – is in no position to do this.

The rolling re-scheduling has been going on for three years, unless a billionaire steps in the party will never be in a position to re-pay the £20m or so it owes. Lakshmi Mittal has given over £5 million, Sainsbury has given some £15 million (more than Ashcroft has given the Tories). You have to ask why, if they can’t manage their own party finances, should they be trusted with the national finances? Labour is a sub-prime credit risk, led by a sub-priminister…




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Quote of the Day

Dominic Raab wrote in his letter of resignation…

“This is, at its heart, a matter of public trust,” he told the PM, concluding: “I cannot reconcile the terms of the proposed deal with the promises we made to the country in our manifesto at the last election… I believe that the regulatory regime proposed for Northern Ireland presents a very real threat to the integrity of the United Kingdom. I cannot support an indefinite backstop arrangement, where the EU holds a veto over our ability to exit…”

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