Labour is facing a possible probe by the UK’s elections watchdog over claims of ‘indirect funding’ from the EU.
The Electoral Commission said it was considering concerns over a contribution to The Fabian Society, a Labour-linked think tank.
It comes after EU officials sanctioned the Foundation for European Progressive Studies (FEPS), which is the think tank of the Party of European Socialists.
The Party of European Socialists is among the European political parties who receive funding from the EU budget.
FEPS was hit with a 36,000 euro (£30,000) fine for funding a joint conference with the Fabian Society in London in 2023, as well as a subsequent book publication.
This was found to be in breach of EU rules as it ‘provided indirect funding to a party at national level’.
The fine totalled the same amount FEPS contributed to the event co-organised with The Fabian Society, which is affiliated with Labour.
It was held to discuss Labour’s ‘pathway to power’ ahead of the 2024 general election in Britain.
The Electoral Commmission said it was now looking into the matter in relation to its own rules on political donations.
Sir Keir Starmer’s Labour is facing a possible probe by the UK’s elections watchdog over claims of ‘indirect funding’ by the EU
It comes after EU officials sanctioned the Foundation for European Progressive Studies (FEPS), which is the think tank of the Party of European Socialists
An Electoral Commission spokesman said: ‘We considering this information in line with our regulatory remit.’
In a ruling last week, the EU’s Authority for European Political Parties and European Political Foundations found against FEPS.
It said: ‘FEPS granted an advantage specifically to the UK Labour Party which benefited… from cost-free advice and support for its ‘pathway to power’ across a range of policy areas that were relevant in UK politics at the time.’
FEPS said it respected the decision but disagreed with it.
The think tank said in a statement: ‘FEPS neither directly nor indirectly funded the UK Labour Party or any other political party.
‘We have no such intentions or capacities and do not engage in party financing either inside or outside the EU. We regret that our arguments did not convince the APPF.’
It added: ‘As a political foundation, FEPS cannot be expected to be non-political, and it is certainly within the remit of FEPS’ mission to provide advice, guidance and input for social-democratic policymakers and organisations.’
FEPS also highlighted how The Fabian Society ‘is older than the Labour Party and it is not controlled by it’.
‘We believe it is a European interest to use our channels to keep British partners engaged in EU matters and close to the EU,’ the think tank said.
The Fabian Society states on its website that it works ‘very closely with Labour politicians, as well as influencing debate across the political spectrum’.
It also boasts that ‘every Labour prime minister has been a Fabian and today 100s of Labour politicians are members of the society, including Labour leader Keir Starmer and more than half his shadow cabinet’.
Tory co-chairman Nigel Huddleston said: ‘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.’
A Fabian Society spokesperson said: ‘The Fabian Society is an independent think tank affiliated to the Labour Party.
‘The funding from FEPS was in support of a conference and a research report in early 2023. None of this money was given to the Labour Party.
‘We have not been contacted by the Electoral Commission regarding FEPS support of our work.
‘All of our research findings and the content of our events are independent from the Labour Party.
‘We accept funding from a range of ethical sources – all of which are published in our annual report.
‘We have always and will always act with full transparency around our funding which is why we received an A rating from Open Democracy.’
The Labour Party has been contacted for comment.
