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NuLab 'bankrupt' 13/01/07

Will NuLab party be able to afford to fight the next election as repayment days loom on £10m in loans due to be repaid this year.

NuLab also have a massive legal bill for advice to party officials caught up in the police investigation into cash for honours.

The loans include £2.3m owed to Sir David Garrard on 28 April this year; £1.5m owed to Dr Chai Patel in August and £250,000 to Sir Gulam Noon in October.

Party insiders say the party does not have enough money to pay back the loans and will have to beg the lenders to give them more time, or convert them into donations.

In 2008, the party will have to make millions of pounds more in loan repayments, including £1m it owes to Barry Townsley who was proposed for a peerage by Tony Blair.

Bob Marshall-Andrews, the Labour MP for the Medway, said: “One of the consequences of the loans debacle is that Gordon is going to inherit a completely bankrupt party. The political implications are enormous.”

Angela Eagle, the Labour MP for Wallasey and a member of its National Executive Committee, said:-

“Our funding is at a complete halt, partly because of the police investigation,” she said. “We are well aware that unless something happens we are likely to be facing the election with no money.”


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