An amendment proposed by Labour back-bencher Gordon Prentice has gained the support of 163 MPs in the wake of growing concern at the huge sums being donated by wealthy Tory donors, such as Lord Ashcroft and Lord Laidlaw.
While Lord Ashcroft's ta
x status remains a mystery, Lord Laidlaw was last week at the centre of demands from the Liberal Democrats for an investigation by HM Revenue and Customs into whether he owed at least £50 million in unpaid tax.
Mr Prentice, the Edinburgh-born MP for Pendle, has tabled an amendment to the Political Parties and Elections Bill that would restrict "permissible donors" to people resident in the UK for tax purposes.
At present, valid donors only have to be on the electoral roll or have any company they use to make donations registered at Companies House.
His restrictions, if passed by the Commons and Lords, would have a cross-party impact. Last week it emerged that Lord Laidlaw, who lives in Monaco, had ceased providing funding to the Conservative Party until he resolved unspecified "tax issues". But one of Labour's biggest donors, the Indian businessman Lord Paul, is also a "non-dom".
Mr Prentice said: "I want the government to accept my amendments and then we're on the home straight. It would be very difficult for Jack (Straw, the Justice Secretary] to resist them. There is huge support – I have got 163 MPs supporting the amendment."
Mr Prentice, who has long campaigned to tighten the funding of political parties, has previously told the Commons that the ability of tax exiles to make donations and sit in the House of Lords is an "absolute disgrace and a scandal".
He told The Scotsman: "This is not just about peers. This is a bill that applies to anyone who is in the House of Lords or not. If the amendment is accepted, you will not be able to give money to a political party unless you are a UK resident for tax purposes. The procedures in the House of Lords belong in another age.
"The idea that you can sit and sip a gin and tonic in Monaco and give millions to a party, but not pay a penny to the Revenue and Customs in taxes is simply unacceptable."
MPs have tabled a number of amendments to the Political Parties and Elections Bill, and it is up to Commons Speaker Michael Martin to decide which should be put to the vote. Another possible problem is legal red tape – the government is thought to fear Mr Prentice's clause may not be legally watertight.
The Political Parties and Elections Bill is primarily designed to give additional investigatory powers to the Electoral Commission, which monitors donations, and to introduce new limits on the amounts candidates can spend at a general election.
A spokesman for the Ministry of Justice said yesterday: "The government is aware that the amendment has the support of a large number of MPs. The amendment will be given active consideration and is likely to be debated in a few weeks' time."
Mr Prentice also hopes to increase pressure on Lord Ashcroft to come clean about his tax status. A ruling is expected within weeks from the Information Commissioner into who at 10 Downing Street received a "clear and unequivocal assurance" from Lord Ashcroft that he would take up permanent residence in the UK before the end of 2000.
The full article contains 607 words and appears in The Scotsman newspaper.
