Short Money reforms, announced at last year’s Spending Review, aimed to cut taxpayer funding for non-government parties
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| Short Money is to help opposition parties with their costs |
The Government is to roll back on controversial funding cuts for opposition parties after what is being called the "shortest consultation in the history of the universe", Sky News understands.
The Short Money reforms, announced by the Chancellor at last year’s Spending Review, aimed to cut 19% of taxpayer funding for non-government parties at Westminster.
Short Money, named after Edward Short, is the common name given to the annual payment to opposition parties in the House of Commons to help pay their costs.
In a joint response to the consultation, opposition parties vowed to refuse changes to the existing formula for Short Money and the "policy development grant".
Labour would face an immediate cut of £1.3m if the measures are enacted in full, leading to 20 parliamentary staff losing their jobs.
The opposition parties have offered to discuss a reduction in the rate of increase in Short Money, by indexation to the CPI inflation measure rather than RPI.
This would save £2.32m over the course of the Parliament, they have claimed.
The memo also offered further transparency in how the Short Money is spent, through the publication of pay bands for opposition staff, saying: "We do not believe there is any compelling case for change to this mechanism or formula".
Labour sources suggest that Number 10 has been made aware that a prospective £1.3m cut to Labour Party funding would be frowned upon.
It also comes at a time when the Prime Minister is anxious to ensure the party mobilises its canvassers to campaign for the UK to stay in the European Union.
Labour frontbenchers have threatened to withdraw ordinary crossbench cooperation if the cuts go through.
A number of backbench Conservative MPs have also expressed disquiet about the cuts, raising fears in the Government that it might lose a required vote on the issue in the House of Commons.
Labour has also made a similar argument for the Government to pause its Trade Union Reform Bill.
A series of other controversial reforms are being put on hold as Westminster prepares for the EU referendum on 23 June.
The Queen’s Speech is also expected to be delayed until after the vote.
Source : Here