Tories fined £10,000 by elections watchdog for failing to accurately declare donations
The Conservatives have been fined over £10,000 by the elections watchdog for failing to accurately declare donations.
The party under-reported non-cash donations in the form of a member of staff seconded to the party by donor Richard Harpin between April 2020 and December 2023, the Electoral Commission said.
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Mr Harpin, founder of home repairs company HomeServe and review website Checkatrade, has been a long-time donor to the Conservatives, providing the party with almost £3 million in cash and non-cash donations since 2008.
The non-cash donations were under-reported by more than £200,000 when the employee went from part-time to full-time work at the party.
The Tories also reported late a single non-cash donation relating to the same seconded employee, in December 2023.
The party paid two fines totalling £10,750 on 6 March, saying it was the result of an “administrative error” and “not deliberate”.
The fine is the largest paid by the Conservatives since December 2021, when the party was fined £17,800 for failing to deliver an accurate quarterly donation report and failing to keep accurate accounting records.
Louise Edwards, Director of Regulation and Digital Transformation, said: “Our investigation into the Conservative and Unionist Party found a number of donations inaccurately reported or reported late.
“The political finance laws we enforce are there to ensure transparency in how parties are funded and to increase public confidence in our system, so it’s important donations are fully and clearly reported.
“Where we find offences, we carefully consider the circumstances before deciding whether to impose a sanction. We take into account a range of factors before making our final decision, including proportionality.”
Hester controversy
It comes as the Conservatives attempt to draw a line under a donations row that has been dominating headlines for days – plunging the mood in the party to new lows.
The row concerns remarks made by businessman and Tory donor Frank Hester, who reportedly said in 2019 that Diane Abbott, Britain’s longest-serving black MP, made him “want to hate all black women” and that she “should be shot”.
Electoral records show Mr Hester donated £10m to the Conservatives last year.
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Rishi Sunak, who called the comments “racist and wrong”, was already under pressure to hand that cash back when it was reported that he has given the party a further £5m that has yet to be declared, as the Electoral Commission only publishes lists of donations every three months.
The government has repeatedly refused to confirm whether the money has been received.
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Sky News understands the party is still “in talks” over the additional cash.
The prime minister attempted to put the story to bed on Monday as he launched a fightback against rumours of a plot to oust him.
Asked why his party would take £5m from someone whom he had said had made racist comments, he said: “He’s already apologised for these comments.
“And my point of view is when someone apologises genuinely, expresses remorse – that should be accepted. And that’s that.”
A spokesperson for the Conservative Party said: “After becoming aware of an administrative error, the party self-reported to the Electoral Commission.
“We accept its findings and appreciate that the Electoral Commission accepts that this was not deliberate.”
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Politics
Row over how many farms will be affected by inheritance tax policy – as PM doubles down ahead of farmers protest
Sir Keir Starmer has insisted the “vast majority of farmers” will not be affected by changes to Inheritance Tax (IHT) ahead of a protest outside parliament on Tuesday.
It follows Chancellor Rachel Reeves announcing a 20% inheritance tax that will apply to farms worth more than £1m from April 2026, where they were previously exempt.
But the prime minister looked to quell fears as he resisted calls to change course.
Speaking from the G20 summit in Brazil, he said: “If you take a typical case of a couple wanting to pass a family farm down to one of their children, which would be a very typical example, with all of the thresholds in place, that’s £3m before any inheritance tax is paid.”
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The comments come as thousands of farmers, including celebrity farmer Jeremy Clarkson, are due to descend on Whitehall on Tuesday to protest the change.
And 1,800 more will take part in a “mass lobby” where members of the National Farmers’ Union (NFU) will meet their MPs in parliament to urge them to ask Ms Reeves to reconsider the policy.
Speaking to broadcasters, Sir Keir insisted the government is supportive of farmers, pointing to a £5bn investment announced for them in the budget.
He said: “I’m confident that the vast majority of farms and farmers will not be affected at all by that aspect of the budget.
“They will be affected by the £5bn that we’re putting into farming. And I’m very happy to work with farmers on that.”
Sir Keir’s spokesman made a similar argument earlier on Monday, saying the government expects 73% of farms to not be affected by the change.
Environment, Farming and Rural Affairs Secretary Steve Reed said only about 500 out of the UK’s 209,000 farms would be affected, according to Treasury calculations.
However, that number has been questioned by several farming groups and the Conservatives.
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The NFU said the real number is about two-thirds, with its president Tom Bradshaw calling the government’s figures “misleading” and accusing it of not understanding the sector.
The Country Land and Business Association (CLA) said the policy could affect 70,000 farms.
Conservative shadow farming minister Robbie Moore accused the government last week of “regurgitating” figures that represent “past claimants of agricultural property relief, not combined with business property relief” because he said the Treasury does not have that data.
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Agricultural property relief (APR) currently provides farmers 100% relief from paying inheritance tax on agricultural land or pasture used for rearing livestock or fish, and can include woodland and buildings, such as farmhouses, if they are necessary for that land to function.
Farmers can also claim business property relief (BPR), providing 50% or 100% relief on assets used by a trading business, which for farmers could include land, buildings, plant or machinery used by the business, farm shops and holiday cottages.
APR and BPR can often apply to the same asset, especially farmed land, but APR should be the priority, however BPR can be claimed in addition if APR does not cover the full value (e.g. if the land has development value above its agricultural value).
APR and BPR can apply to farmland, which the Conservatives say has been overlooked by the Treasury in compiling its impact figures. File pic: iStock
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Mr Moore said the Department for the Environment, Farming and Rural Affairs (DEFRA) and the Treasury have disagreed on how many farms will be impacted “by as much as 40%” due to the lack of data on farmers using BPR.
Lib Dem MP Tim Farron said last week1,400 farmers in Cumbria, where he is an MP, will be affected and will not be able to afford to pay the tax as many are on less than the minimum wage despite being asset rich.
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Cabinet split over assisted dying as Education Secretary Bridget Phillipson latest to reveal she will vote against bill
A split is emerging in the cabinet, with Education Secretary Bridget Phillipson revealing she will join several of her colleagues and vote against the bill to legalise assisted dying.
Ms Phillipson told Sky News she will vote against the proposed legislation at the end of this month, which would give terminally ill people with six months to live the option to end their lives.
She voted against assisted dying in 2015 and said: “I haven’t changed my mind.
“I continue to think about this deeply. But my position hasn’t changed since 2015.”
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Details of end of life bill released
MPs will be given a free vote on the bill, so they will not be told how to vote by their party.
The topic has seen a split in the cabinet – however, Prime Minister Sir Keir Starmer has yet to reveal how he will vote on 29 November.
Ms Phillipson joins some other big names who have publicly said they are voting against the bill
These include Deputy PM Angela Rayner, Health Secretary Wes Streeting, Justice Secretary Shabana Mahmood and Business Secretary Jonathan Reynolds.
Border security minister Angela Eagle is also voting against the bill.
Senior cabinet members voting in favour of assisted dying include Energy Secretary Ed Miliband, Science Secretary Peter Kyle, Work and Pensions Secretary Liz Kendall, Culture Secretary Lisa Nandy, Northern Ireland Secretary Hilary Benn, Transport Secretary Louise Haigh and Welsh Secretary Jo Stevens.
The split over the issue is said to be causing friction within government, with Sir Keir rebuking the health secretary for repeatedly saying he is against the bill and for ordering officials to review the costs of implementing any changes in the law.
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Health Secretary Wes Streeting has called for a cost report into assisted dying. Pic: PA
Sky News’ deputy political editor Sam Coates has been told Morgan McSweeney, the PM’s chief of staff, is concerned about the politics of the bill passing.
He is understood to be worried the issue will dominate the agenda next year and, while he is not taking a view on the bill, he can see it taking over the national conversation and distracting from core government priorities like the economy and borders.
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Details of the bill were published last week and include people wanting to end their life having to self-administer the medicine.
It would only be allowed for terminally ill people who have been given six months to live.
Two independent doctors would have to confirm a patient is eligible for assisted dying and a High Court judge would have to give their approval before it could go ahead.
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