The Electoral Commission, the body responsible for oversees party funding in the UK, is reviewing a £30,000 donation to a Labour-affiliated organisation as a “potential regulatory concern”.
The matter relates to a cash payment from the European Parliament-funded Foundation for European Progressive Studies (FEPS), linked to the Party of European Socialists, to Labour-aligned think tank the Fabian Society.
Last week, the EU sanctioned FEPS, which describes itself as the “think tank of the progressive political family at EU level”, for making the donation in 2023, describing it as an “indirect funding of the UK Labour Party”.
The Authority for European Political Parties and European Political Foundations subsequently slapped the Foundation with the hefty fine.
The UK Electoral Commission has now raised concerns about the donation, although it has not launched a formal investigation.
A spokesman explained: ““We are considering this information in line with our regulatory remit.”
Nigel Huddleston, co-chairman of the Conservative Party, criticised the donation, telling The Telegraph: “Brexit was a liberating moment for this country, and to see Labour groups taking wads of cash from EU groups is simply scandalous.
“The British public demanded we no longer kowtow to Brussels diktats, and will rightly be shocked.
“If Labour are serious about Brexit, and are not planning to undo the progress made to further our country’s independence from Brussels, they must commit to taking no further funding from this group.”
UK law places restrictions on donations to party members’ associations for political activities, including policy development.
In accordance with Electoral Commission rules, donations of more than £500 must come from “permissible sources” and those exceeding £11,180 must be declared.
The Fabian Society used the funds for a conference and book launch in January 2023, which was attended by Labour politicians.
A statement on its website says: “We are affiliated to the Labour Party and work very closely with Labour politicians.”
“Every Labour prime minister has been a Fabian”, it adds.
The EU’s watchdog said FEPS was fined “because of indirect funding of the UK Labour Party and because of exceeding the task limitations set for European political foundations”.
Such foundations are barred from contributing to party election funds.
FEPS has accepted the fine but also defended its actions, arguing they were within its remit.
A spokesman said: “As a political foundation, FEPS cannot be expected to be non-political, and it is certainly within the remit of FEPS’s mission to provide advice, guidance and input for social-democratic policymakers and organisations.”
Express.co.uk has contacted the Labour Party for comment.