Labour Party has £27m debt

11.39.50am UTC (GMT +0000) Wed 2nd Aug 2006

Labour Party in the red

Figures submitted to the Electoral Commission last month show that the Labour Party is in debt to the tune of £27 million. They are having to make spending cuts of 20% which will to lead to job losses. At the same time there is a police investigation after four Labour backers at the last general election were nominated for peerages. This investigation could lead to the Prime Minister himself being required to answer their questions. He has said no-one in the Labour Party has sold honours in return for financial backing to his knowledge.

The Conservatives reported debts of £18m whereas the Liberal Democrats are solvent.