A quick guide to short money, for the benefit of the Conservative Party

Avatar

CashBy Thomas Williams / @thomaswilliams

According to the Conservatives, Labour has received a 21% increase in short money since May, and one Tory MP has written to Ed Miliband calling on him to forfeit this.

At first glance, the figures might back this up. On an annualised basis, the Tories received £4,203,340.61 before May, and now Labour receives £5,079,633.79, an increase of 20.8%*. But to imply this is somehow Labour grabbing money they’re not entitled is simply wrong.

Given that the Tories spent the last 13 years in opposition, you’d think they might understand how the short money system works, but apparently not. Either that or they’re misrepresenting the situation in order to mislead the electorate. Since I’d never believe that of them, I’ll give them the benefit of the doubt and quickly explain what’s going on (it can be a little free education for them).

Short money is money given to opposition parties in the commons to help them do their job of holding the government (with all its civil servants, special advisors and, until yesterday, taxpayer-funded photographers, at its disposal) to account. It’s allocated by a fairly complicated formula, details of which can be found on the parliament website.

Money is given to the opposition parties on the basis of the seats won (at £14,351 a seat) and votes won (at £28.66 per 200). On top of that, they get travel allowances (a total of £157,651) apportioned between all the opposition parties in the same way as the other allocation.The leader of the opposition gets a further £668,606.

But these allowances have increased by just 2.4% since last year, a little below inflation. So how come Labour is getting 21% more than the Tories were before May? Simple: there are 23% more Labour MPs now than there were Tory MPs before May.

In fact, Labour’s total of MPs is 95% of the pre-May total of Tory and Lib Dem MPs – but they get just 86% of the funding. And the total amount being allocated in short money has also fallen, by over £800,000 a year.

So claiming that Labour is being unfairly treated, or grabbing extra cash, is absurd. Less is being spent overall, the formula has increased by less than inflation, and Labour – now doing the job of opposition almost entirely by itself – is receiving significantly less than the Tories and Lib Dems did before May. It seems the coalition government wants to weaken the official opposition and prevent it from properly scrutinising its proposals. Not a surprise, but so much for the ‘new politics’.

*This doesn’t include the allocation for the leader of the opposition, which would bring the percentage down a little. This is the only way I can get to the Tories’ claimed figure of a 21% rise.

More from LabourList

DONATE HERE

We provide our content free, but providing daily Labour news, comment and analysis costs money. Small monthly donations from readers like you keep us going. To those already donating: thank you.

If you can afford it, can you join our supporters giving £10 a month?

And if you’re not already reading the best daily round-up of Labour news, analysis and comment…

SUBSCRIBE TO OUR DAILY EMAIL