Labour & Conservatives in the red

4.03.00am UTC (GMT +0000) Sun 6th Aug 2006

Figures submitted to the Electoral Commission last month show that both the Labour and Conservative Parties are in debt. The debt for both of them is sufficiently large for them both to be declared bankrupt if they were a business.

Labour's debt is biggest to the tune of £27 million and they are having to make spending cuts of 20% which will to lead to job losses. At the same time there is a police investigation after four Labour backers at the last general election were nominated for peerages. This investigation could lead to the Prime Minister himself being required to answer their questions. He has said no-one in the Labour Party has sold honours in return for financial backing to his knowledge.

The Conservatives reported debts of £18m although this is masked by several loans from as yet unnamed sources. The Liberal Democrats are the only major political party who are solvent.