Analysis

Labour finances about to fall off even bigger cliff, new analysis shows

New analysis by finance maven and left activist Esther Giles (The Forensic Socialist/@VoteEsther) shows that the Labour party’s finances are about to take an even bigger hit than has so far been seen under the disastrous regime of Keir Starmer and David Evans.

The party has been flirting with bankruptcy since not long after the pair took over, laying off hardworking staff and even failing to mount a campaign worth the name in the recent North Shropshire by-election – with the party’s catastrophic fall allowing the LibDems to leapfrog it and take the seat from the Tories – despite sending begging letters to members and even expelled members asking for funds.

But Ms Giles’s analysis of Labour’s financial reports shows that so far the ‘big hit’ from the exodus of hundreds of thousands of members has not even been reflected – and that this will bite in 2022.

Ms Giles’s chart of Labour’s income shows that, so far, the party has continued to report an increase in membership fees received:

As the chart makes clear, the big loss shown so far in Labour’s woeful financial position is in donations from members and unions, not in membership fees.

However, with membership numbers having fallen by around 200,000 or more since Starmer became leader, the party is set to take a hit of around £6 million when its membership dues are properly reflected – a situation already reflected in the party’s persistent emails pleading for cash.

This will land in the middle of an unfolding financial disaster for the party: its total income fell from the 2019 high under Jeremy Corbyn of almost £60 million to just over £40 in its first year under Starmer. The £6m fall in membership income will reduce that to just £35m – more than £20m down on 2019.

Meanwhile, the party has continued to haemorrhage cash in needless settlements and the legal costs incurred in its hounding of members and its (anything-but-)independent complaints process designed to hound out even more.

Labour’s widely-condemned sacking of staff to try to reduce its losses, meanwhile, has at best broken even with its profligacy on legal costs – the three waves of redundancies have just about balanced out the £2m a year legal expenses admitted by a right-wing National Executive Committee member.

On top of this comes a reduction in union funding. The Bakers’ Union has withdrawn all funding and has disaffiliated from the party after Labour’s foolhardy treatment of the union’s president, while Unite intends to reduce donations to the minimum consistent with affiliation, a CWU special conference has voted to do the same and the GMB is reviewing all its funding of the party. The party could also see huge fines as a result of its latest massive data breach.

As a result of political foolishness and the prioritisation of a factional war over real opposition, the party’s reserves are now at their lowest level since 2014 – while it faces a likelihood of an early general election as soon as the collapsing Boris Johnson is replaced and a new Tory leader seeks to capitalise on the usual popularity ‘bounce’ and ‘honeymoon period’.

Ms Giles told Skwawkbox:

I find it shocking that NEC members appear to be oblivious or deliberately ignorant to what’s going and that the treasurer, who took a lot of credit for restoring party finances under Jeremy Corbyn, won’t do the reverse.

However, it’s clear from the areas in which Labour has seen such falls in its funding and such increases in its costs that the fundamental responsibility for its financial situation, which is already disastrous and about to get worse, lies with its political and administrative ‘leadership’.

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20 comments

    1. If Labour does go bankrupt can us ex members fund a hostile takeover bid?

      1. HEAR! HEAR! All The UK Labour Party Exiles!
        If not we will use Hostile Tactical Deep Clean of ALL Neo-Labour Party Parasite TORIES with our voting dusters!

      2. Hehehe, knowing how the crony-capitalism of the Trilateral Commission works, Starmer would transfer ownership the “Labour Party/People’s Party” brand to a group of venture capitalists (like the shitters that own the biggest chunk of the current NHS, “HCRG Care Group”) and sell it for a tidy profit to EDL/CIA or a pro-authoritarian tech giant like Yoogle or FarceBook.

        Do you remember when we used to say about Conservatives that they ‘knew the price of everything and the value of nothing? Well, Keir Starmer and his cohorts made it true for some labourites too.

  1. my new years resolution is to start a hope donation jar which will capture any money that will be an investment in a new socialist party. better than spitting.

  2. It should be noted that the “donations” always drop off after a GE (well obviously because members/unions have donated during the GE). Also I’m not sure what they put “supporters” under as that would have created peaks during leadership election years (which the party now has scrapped so they wont be getting those boosts any longer). Honestly stuff em. They didn’t want me as a “leftie” (I quit after they refused to give back the whip to Corbyn and because they now spend all their time attacking the left not the tories – so much for all the “we should spend less time doing infighting and partisanship”) so why should they get my money.

  3. Accounts go to end 2020, and these show the membership fees of the temp members that joined to vote for Starmer. 2021 will exclude these as the temp members have left. Member donations went down from £13.8m to £800k in 2020, a huge reduction of £13m !!!

    Labour ran an overall deficit of over £1m for 2020, so expect it to be much worse for 2021.

    They have killed the Labour Party.

  4. “The contrast between the Tory and Labour grassroots may not have bothered everyone at the top of the Conservative Party, but CCHQ (Conservative Campaign Headquarters) had clearly begun to take it seriously. It was not just the difference in raw numbers; the massive expansion of Labour’s dues-paying membership meant that, for the first time in years, there was a realistic prospect of the Conservatives being outspent by their main rival.” (1)

    (My own thoughts: First time ever probably).

    Still, the Conservatives need not worry about that now!

    (1) The British General Election of 2019 by Robert Ford etc., page 73.

  5. Makes me wonder about the finances of the local CLP’s.

    Personally, I couldn’t give a damn if they all went down the tubes.

    It would, at least, give Southside Labour the opportunity to flog off the real estate, to keep the wolf from the door, a little longer.

    Not permanently, just, to keep the illusion going.

    Two short years! That’s how long it took. Two short years!

    The basta*ds!!

  6. Are these figures accurate? I find it implausible that Starmer received more in membership dues in 2020 than Corbyn ever did. That makes him sound more popular, whereas the fall in donations implies he is LESS popular…

    1. We’ll probably see some legal loophole equivalent figure juggling March/April when the phantom members never come forward to pay their dues.

    2. Probably correct. Don’t forget thousands of new temporary members joined to vote for Starmer in the Leadership election, their subs would be in these 2020 accounts, but probably not in the 2021 accounts unless they are remaining members. A good indication is the virtual evaporation of the membership donations, down by £13m to £800k. I suppose they might prop up things by selling off the buildings, but that will only last a few months after all the court cases arising out of the Data Breach.

      Asset Stripper Starmer is at work.

      1. The push for the general election as started…funding for the fight against the neo liberal alliance is on and the moneys flowing in slowly but steadily.The opinion polls are with us and especially the young who have seen property and rents soar beyond their wages.One last push and it will mean that the stain of poverty will vanish from the streets.Britain….No but it could have been and now we see and learn from the sabotage of a country by the neo liberal alliance and establishment.
        Ireland stands ready to see the first democratic socialist government in its history and sweep away the parasites infesting the Republic for too long..The oldest party in Ireland Sinn Fein is on course for government….
        .And back in the United kingdom of great Britain a knight of the realm will save this appalling archaic system of government by more of the same colonialist attitude and plenty of neoliberal medicine..The British like fairy tales and storys but reality is a economic downward spiral and massive inflation with little left to asset strip because the vultures have feasted upon the country and the people for decades.The only way for a revival will be the hard way shouldered once again by yes The Working class “and next time the media and the criminals that stripped the country don’t get to choose the government.Unfortunately this is for the future and much pain will be necessary before the people wake up to what has been done to them.in the name of government.

      2. All things considered the Footage, the MSM, the EHRC Report, the Forde Report, the Remoaner/Brexiteer Bandwagons, the…, the…, the…, it is blatantly obvious that The PEOPLE were Robbed in 2019. The 3 Stooges, USA, Israel and UK made it quite clear that Jeremy Corbyn was not going to be our PM. If we consider it from their perspective, rightly so! A Peaceful, War Defusing, Rich Taxing, Nationalising, Non Nuclear, Anti Arms Supply, Britain that builds Bridges not Walls would cause their miserable ends, in a jiffy!
        Democratic Socialism did not Loose GE2019, Democratic Socialists were Robbed. One thing that caused is for Socialists across the world to wake up and protect their Rights to Choose, If our misery of NO CHOICE leads to more Socialism abroad, then BRAVO! When USA looked away to make War with China, Russia, Iran and creating ME Terrorism, The Socialists won Elections and they are taking back The USA’s Back Garden. Socialists Nations are drawing together internationally and it is wonderful to see them bypass the Western Greedmongers and Warmongers, with their evil Neoliberal Capitalism, bit it’s fast drawing to its end!
        I love it when a political underdog stands up and says no to their bullies, becomes self sufficient and independent, and don’t the Neoliberal Capitalists just hate it!

  7. Esther Giles hits the nail on the head, why are the NEC not doing their job, if the party does go bankrupt who does the Receiver pursue for Trading insolvently

    1. Then we also have to remember the Stifling Grip that Blue Keef, Mr Blobby and The Starmerstruppen have on The NEC, CLP, etc. A Reminder, from the Ban on Homeless Funds.
      https://ibb.co/ZH6TG3p
      So I guess the buck should stop with Blue Keef and Mr Blobby, but they will worm their loopholed arses out of anything and everything!

  8. The billionaires will be able to buy the party cheap. The “moderates” will be happy enough, they will still have their cushy jobs as those they have abandoned suffer evermore.

    Eventually the vacuum will be filled.

    The country is crying out for someone, anyone, to speak for ordinary people…

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