Donations to Political Parties Analysis

2nd Quarter, 2012

Donation Trends
Over the last 11 years, we have seen a repeating trend of a dip in funding after each election year (2001, 2005, 2010), followed by gradually increasing levels of donations. This effect was also echoed in 2007, due to speculation that an election would be called by the then Prime Minister, Gordon Brown. However, 2012 donations are down by more than a quarter compared to this time last year, with donations to the Conservatives down over 10%, Labour and Lib Dems over 30% and donations to SNP down a massive 85%. It is looking likely that, for the first time since records began, donations for the year 2 years after an election will be less than the year immediately following an election. Specifically in the second quarter of 2012, we saw: The total donations in the quarter fall from 8,858,790.36 down to 7,873,477.67 A decrease in donations to the Conservative Party to 3,785,579.36 down from 4,086,097.19 the previous quarter, though up from 3,220,562 and 2,744,618 the 2 before that Labour Party donations fall to 2,964,471.05 from 3,452,441.05 the previous quarter, though up from 2,315,038 in the last quarter of 2011 A slight increase in Liberal Democrats donations to 717,797.26 from 606,724.32 the first quarter of 12, but still lower than any of the totals for any last 3 quarters of 2011, which were each around the 1m mark
Total Donations by Year - Party Breakdown
70,000,000 60,000,000
Co-operative Party Other British National Party

Total Donations

50,000,000 40,000,000 30,000,000 20,000,000 10,000,000 0

Green Party Plaid Cymru - The Party of Wales UK Independence Party (UK I P) Scottish National Party (SNP) Liberal Democrats Labour Party Conservative and Unionist Party

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We have also broken down the annual donation totals by parties, and these trends are examined more closely in the party sections. Page 1

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Total Donations by Year - Type Breakdown

70,000,000 60,000,000
Other Impermissible Donor Limited Liability Partnership Registered Political Party

Total Donations

50,000,000 40,000,000 30,000,000 20,000,000 10,000,000 0

Friendly Society Trust Unincorporated Association Company Trade Union Individual

Top Ten Donors to Political Parties

Since 2001 1. Unite the Union (Labour, 42,224,915.79, 279 donations) 2. UNISON (Labour, 19,863,201.39, 145 donations) 3. GMB (Labour, 16,015,996.31, 124 donations) 4. David Sainsbury (Labour, 15,486,637.55, 61 donations) 5. Union of Shop Distributive and Allied Workers (ASDAW) (Labour, 12,703,253.28, 67 donations) 6. Communication Workers Union (CWU) (Labour, 7,726,247.50, 82 donations) 7. Co-operative Group (CWS) Ltd (Co-operative Party, 5,422,319.06, 51 donations) 8. Joseph Rowntree Reform Trust Ltd (Lib Dems, 5,391,345, 42 donations) 9. Lakshmi Mittal (Labour, 5,125,000, 4 donations) 10. Paul Getty (Conservatives, 5,000,000, 1 donation) Quarter 2, 2012 1. Unite the Union (Trade Union, Labour, 798,025 over 2 donations) 2. Michael S Farmer (Individual, Conservatives, 512,450) 3. ASDAW (Trade Union, Labour, 407,558.19 over 2 donations) 4. GMB (Trade Union, Labour, 302,310 over 2 donations) 5. Brompton Capital Ltd, (Company, Lib Dems, 250,000) 5. Peter Beak (Individual, Conservatives, 250,000 over 2 donations) 7. National Conservative Draws Society (Unincorporated Association, Conservatives, 200,000) 8. UNISON (Trade Union, Labour, 197,696 over 3 donations) 9. Alexander A Fraser (Individual, Conservatives, 150,000) 9. Andrew Rosenfeld (Individual, Labour, 150,000) 9. Heather Hunt (Individual, Green Party, 150,000 over 2 donations)

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Conservative Donors Q2, 2012 Total Donations 3,785,579.36

1. Michael S Farmer (Individual, 512,450) 2. Peter Beak (Individual, 250,000 over 2 donations) 3. National Conservative Draws Society (Unincorporated Association, 200,000) 4. Alexander A Fraser (Individual, 150,000) 5. Norbrook Laboratories GB Ltd (Company, 100,000) Michael Farmer is a hedge fund manager who was appointed as the Conservative Partys Co-Treasurer along with Stanely Fink after Peter Cruddass resignation following the Cash-for-Access scandal. He has given the Party and associated groups 4,319,546 since 2001

Long Term Donor Alert: David Rowland (Donated 19,300 this quarter) Mr Rowland is a self-made property tycoon, who was appointed as Conservative Treasurer in 2010 by David Cameron, though he stood down six weeks before he was due to take over the role. This donation, his first in over a year, takes his total given the Party to 4,465,206.52, made over 19 donations since 2009 Conservative Donation Trends Over the last 11 years, the Conservatives have been dependent on donations from individuals for the majority of their funding, with companies and unincorporated associations also playing a significant role There was an increasing overall trend for total donations after the 2001 election year until the election year of 2010, which saw the Conservatives form a government with the Liberal Democrats Q2 2012 saw a decrease in the Conservatives share of donations from companies, from 26% in 2011 and 34% in Q1, to 20%
Conservative Annual Donations
40,000,000 35,000,000 30,000,000
Other Impermissible Donor Limited Liability Partnership Registered Political Party Friendly Society

Donations Value

25,000,000 20,000,000 15,000,000 10,000,000 5,000,000 0

Trust Unincorporated Association Company Trade Union Individual

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Labour Donors Q2, 2012 Total Donations 2,964,471.05

1. Unite the Union (Trade Union, 798,025, over 2 donations) 2. Union of Shop Distributive and Allied Workers (Trade Union, 407,558.19 over 2 donations) 3. GMB (Trade Union, 302,310 over 2 donations) 4. UNISON (Trade Union, 197,696, over 3 donations) 5. Andrew Rosenfeld (Individual, 150,000) Unite the Union is Britains largest trade union with 1.5 million members and have donated more to a political party since 2001 than anyone else, having given a total of 42,224,915.79 over 279 donations Andrew Rosenfeld is a property investor with an estimated wealth of over 100m. He was appointed as a senior advisor to the Labour Party in October 2011 and has given the party 471,440

Long Term Donor Alert: William Haughey (Donated 53,700 this quarter) Mr Haughey is a Scottish businessman, with an estimated worth of 50m. He is the owner and chairman of City Refrigeration Holdings Ltd, a facilities management company. This donation brought his total donated to Labour to 1,304,000 spread over 14 donations, the first occurring in 2001. Labour Donation Trends Labour have been reliant on Trade Union funding each year since 2001, but in 2011 the Unions share of Labour donations rose to 84%, the highest trade union share yet, as their donations have remained largely consistent but individual donations have dipped to less than a seventh of 2010 levels This reliance eased in both Q1 2012, dropping to 74%, and Q2, dropping 70%, helped by individuals donating more to Labour in the first 6 months of 2012 than in the whole of 2011
Labour Annual Donations
30,000,000 25,000,000
Other Impermissible Donor Limited Liability Partnership

Donations Value

20,000,000 15,000,000 10,000,000 5,000,000

Registered Political Party Friendly Society Trust Unincorporated Association Company Trade Union

Individual

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Lib Dem Donors Q2, 2012 Total Donations 717,797.26

1. Brompton Capital Ltd (Company, 250,000) 2. Rajinder Loomba (Individual, 100,000) 3. Ministry of Sound Ltd (Company, 40,568 over 2 donations) 4. PricewaterhouseCoopers LLP (Company, 28,417) 5. Joan & Robin Alvarez (Individuals, 25,000 over 2 donations) Brompton Capital Limited is a property development company based in London, owned by entrepreneur Rumi Verjee. They have donated 775,000 to the Party since 2010, made over 4 donations Rajinder Loomba is the founder of the Rinku Group, a clothing company. He was made a Lib Dem member of the House of Lords in January 2011, and in the last 2 quarters he has donated 250,000 Ministry of Sound Ltd is an entertainment business specialising on recorded music, night clubs and consumer electronics. This quarters donations brought their total to 424,637.66, spread over 20 donations

Liberal Democrats Donation Trends The Lib Dems have relied more on company donations than either of the other main parties for all but 2 of the last 11 years, though much of this is due to the grants issued by the Joseph Rowntree Reform Trust Ltd With the exception of 2005, which included 2.4m of donations from convicted fraudster Michael Brown, donations largely tended to increase until 2010, when the party formed part of the government Donations in the first two quarters of 2012 from individuals and companies are broadly around half of the 12 month total for 2011 Donations from Trusts, however, are substantially down, mostly due to a lack of donations from Lib Dem pension fund the Methuen Liberal Trust Fund
Liberal Democrats Annual Donations
7,000,000 6,000,000
Other Impermissible Donor Limited Liability Partnership

Donations Value

5,000,000
Registered Political Party

4,000,000 3,000,000 2,000,000 1,000,000 0

Friendly Society Trust Unincorporated Association Company Trade Union Individual

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SNP Donors Q2, 2012 Total Donations 2,500

The SNP did not receive any private donations over 10,000 this quarter. Scottish National Party Donation Trends Donation levels to the SNP prove to be increasingly volatile, with the Party heavily dependent on inconsistent donations from individuals, though their peak levels of donations do correspond with the Scottish Parliament elections in 2003, 2007 and 2011 2 donations of around 1m in 2011 dwarf the single donation of 2,500 from Richard Lyle that they received this quarter, and as a result the Party has had to be more reliant on public funds
SNP Annual Donations
3,500,000
Other

3,000,000 2,500,000 2,000,000 1,500,000 1,000,000 500,000 0

Impermissible Donor Limited Liability Partnership Registered Political Party Friendly Society Trust Unincorporated Association Company Trade Union Individual

Donations Value

Footnotes: 1. Source: Electoral Commission. 2. Analysis of individual donors refers to donations of 10,000 and over only and includes donations to regulated donees such as party MPs and associated organisations. Donor names include slight variations, such as Michael Farmer and Michael S Farmer 3. Analysis of total donations to parties refers to donations of all value, though not to regulated donees. This includes total party donations per quarter. 4. Trade Union totals include donations from predecessor organisations. 5. Annual donation totals are adjusted according to CPI inflation.

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