Thread by @VoteEsther

In the narrative to follow, I will set out the 2023 Labour Party Finances reported in the Annual Report of Labour Party 2024. This report has been sent to members and will be presented and endorsement sought at the Annual conference of @UKLabour in September 2024.

In 2023 the Labour Party reported a deficit of £0.85m compared with a surplus of £2.7m in 2022. Behind this figure is a dramatic increase to (mainly individual) donations, of £10.5m and an increase to running costs of £6m.

The balance sheet value (net assets) is healthy but has deteriorated compared with the previous year due to
the reported £0.85m deficit and liabilities due to the pension fund. Net assets stand at £8.5m.

The Balance Sheet values from 2010 to 2023 are shown here.

Total Income was £58.6m; the highest ever reported. Membership income is £16.9m, almost matched by donation income of£16.5m (the highest level recorded, despite it not being an election year) Commercial activity has also improved by £2.3m to its highest level ever of £7.5m.

Membership income increased materially from 2015 onwards, reaching its peak of £19.3m in 2020. It now appears to have stabilised around £17m.

In 2022 @UKLabour showed an increase in its dependence on donations from individuals to secure its financial position* and this has continued into 2023. This is a more precarious way of sustaining healthy finances (because donations are, by their nature, non-recurrent).

@UKLabour Based on electoral commission data, the proportion of individual donated income (excluding government grants) was 61%, the highest proportion ever reported.
*This chart is based on Electoral Commission donation date using reported date of the calendar year & excludes govt. grants

@UKLabour This chart shows the absolute value of individual donations recorded on the electoral commission database & demonstrates that individual donations, @ £12m (cash donations) are higher than ever previously reported. In 2024, individual donations already (at Q2) match the 2023 total

@UKLabour David Sainsbury and Garry Lubner deserve special mention.

Sainsbury has donated a total of £38m to political parties since 2010. £11.2m of this was to Labour and £12.3m to the Conservatives.

@UKLabour In 2023 Sainsbury donated to both parties (£10.2m to the Conservatives and £5m to Labour). In 2024 so far he has donated only to Labour.

Gary Lubner has stated that he wants Labour in power for a long time, and has donated £7m to Labour groups and the Party up to Q2 in 2024.

@UKLabour Overall expenditure was £59.3m- its highest ever- compared with £44.5m in the previous year. It is likely that 2024 expenditure will be even higher, given it is an election year.

@UKLabour •Staff related costs increased by £4.3m, having decreased by £6.1m in the previous year, and remain lower than 2019 and 2021. Finance, IT and comms costs increased by a further £1.5m having increased by £2.4m in the previous year.

@UKLabour •The number of staff employed in December 2023 was 57 above the average for the year, and139 above December in the previous year, suggesting that staff related costs will increase further in 2024;

@UKLabour •Building and premises costs increased by a further £1.8m, having increase by £1m in the previous year- presumably to house all the extra staff?
•Admin costs total £3.2m- the same as the previous year. What is included in this figure?

@UKLabour •Senior management costs increased to £1.3m. In 2020, Senior management costs were £0.5m. The ratio of Senior Management to Staff related costs increased from 2.3% to 5.3%

@UKLabour The overall movements in the financial position in 2023 compared with 2022 are shown in this chart.

@UKLabour The Party is expanding its staffing and focusing on income generation from donors to build its revenue income. Together with the stabilisation of membership income, the Party’s finances now seem secure.

@UKLabour Members should ask how legal costs are reported in the accounts and what the Party’s approach is to the recording of contingent liabilities.