Labour could face probe over EU funding

The party could be investigated by regulator the Electoral Commission over a donation to the Labour-linked Fabian Society as a ‘potential regulatory concern’

Labour is facing a potential probe over “indirect funding” from the EU while the party was in opposition, it has emerged.

The party could be investigated by regulator the Electoral Commission over a donation to the Labour-linked Fabian Society as a “potential regulatory concern”, according to reports.

The concern relates to a donation from the Foundation for European Progressive Studies (FEPS), a branch of the Party of European Socialists, to the Fabian Society in 2023.

Keir Starmer is a Fabian (PA)

It comes after the EU sanctioned the FEPS last week for making the £30,000 donation, describing it as “indirect funding” for Labour.

Now, the UK Electoral Commission has expressed “potential regulatory concern” about the donation, The Sunday Telegraph reported, although the regulator has not launched an investigation.

An Electoral Commission spokesman said: “We are considering this information in line with our regulatory remit.”

But Tory co-chairman Nigel Huddleston said the donation was “simply scandalous” and that the British public “will rightly be shocked”.

He told the Sunday Telegraph: “Brexit was a liberating moment for this country, and to see Labour groups taking wads of cash from EU groups is simply scandalous.

“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.”

The Fabian Society, a Labour-linked think tank founded in 1884, used the thousands of pounds for a conference and book launch event in 2023, at which Labour politicians were present.

Electoral rules state donations of more than £500 to associations such as the Fabians must come from “permissible sources”, while they must report those worth more than £11,180.

The EU’s regulator said it had fined the FEPS for indirectly funding Labour and because it breached limits on European political foundations.

Political foundations with EU funding are prohibited from donating to any party’s election-winning funds.

The FEPS reportedly accepted the fine but argued it did not break any rules, adding that it “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”.

A Fabian Society spokesperson said:“The Fabian Society is an independent think tank affiliated to the Labour Party.

“The Fabian Society and FEPS jointly organised a conference and published a research report in early 2023. No funding was provided to the Labour Party.

“We have not been contacted by the Electoral Commission regarding our work with FEPS.

“All of our research findings and the content of our events are independent from the Labour Party.

“We have always and will always act with full transparency around the partners we work with. That is why we received an A rating from Open Democracy.”

The Independent understands the Electoral Commission has not raised any concerns with the Labour Party.

George Bernard Shaw, Emmeline Pankhurst, Oscar Wilde and all Labour prime ministers have been members of the Fabian Society, which first advocated the NHS, minimum wage and the independence of the Bank of England.