Electoral Commission Reviews £30,000 Payment from EU-Funded Foundation

A Regulatory Concern

The Electoral Commission, the UK's party funding watchdog, is reviewing a £30,000 donation to the Labour-affiliated Fabian Society. This donation, made by the European Parliament-funded Foundation for European Progressive Studies (FEPS), has raised concerns about potential regulatory breaches.

FEPS, linked to the Party of European Socialists, denies directly or indirectly funding the UK Labour Party. However, the EU sanctioned FEPS in 2023 for the donation, describing it as an "indirect funding of the UK Labour Party." This resulted in a hefty fine from the Authority for European Political Parties and European Political Foundations.

The Electoral Commission is now considering the information related to the donation, though a formal investigation has not been launched. Concerns have also been raised by the Conservative Party, with co-chairman Nigel Huddleston criticizing the donation as "scandalous" and calling for Labour to commit to not accepting further funding from FEPS.

UK law restricts donations to party members' associations for political activities, including policy development. Donations exceeding £500 must come from "permissible sources" and those exceeding £11,180 must be declared. The Fabian Society used the funds for a conference and book launch in January 2023, attended by Labour politicians.

The Fabian Society maintains its independence from the Labour Party, despite its affiliation and close working relationship. However, the EU watchdog's decision highlights concerns about indirect funding and exceeding limitations set for European political foundations.

Both FEPS and the Fabian Society have defended their actions, emphasizing the non-partisan nature of the book and conference and their commitment to transparency. The Electoral Commission's review will determine whether any regulatory breaches occurred.