Straw seeks to limit funding 'arms race'

Justice secretary Jack Straw has published a white paper on party funding aimed at curbing the "spending arms race".

In a Commons statement, Straw said the paper proposed immediate legislation to reform the Electoral Commission and introduce more effective controls on candidates' spending.

He said the government intended to introduce a Bill capping donations before the summer recess, which will be carried over for debate in the next session of Parliament, but did not indicate what the maximum limit would be.

The move is likely to be seen as directed at wealthy Conservative backers such as Lord Ashcroft.

Straw told MPs: "How our politics is funded is vital for the health of any democratic system."

But Tory spokesman Francis Maude said: "A partisan bill now can't provide the basis for a long-term and sustainable settlement."

The proposals follow 18 months of cross-party talks under the chairmanship of Sir Hayden Phillips.

The talks stalled in October with the parties unable to come to agreement.

The Tories insisted union donations should be included in any limit, while Labour sought to end the use of Lord Ashcroft's money in marginal seats.