Political Parties: Funding

My Lords, the Government intend to move amendments to the Electoral Administration Bill, currently before this House, to make it compulsory for political parties to disclose any loans they receive. This issue affects all political parties and I hope that the Government, political parties and the Electoral Commission will be able to work constructively together to find a solution which allows for transparency and fairness. My intention is to achieve as great a transparency for loans made to political parties as applies to donations under the regime in the Political Parties, Elections and Referendums Act 2000. I have today written to the leaders of all political parties represented at Westminster, and to the Electoral Commission, seeking their views on the elements of a reporting regime, including whether it should be retrospective. I have placed a copy of my letter in the Library. The Prime Minister has announced that Sir Hayden Phillips will conduct a review of the funding of the political parties. The terms of reference of the review were announced earlier today. I have placed a copy in the Library.