Tories reject state funding of parties

The new chairman of the Conservative Party has made clear the Tories will not agree to proposals to introduce state funding of political parties.

Her remarks yesterday will undermine plans by the Government to press ahead with reform of political funding in ressponse to "sleaze" revelations about donors to the Labour Party.

Theresa May, in her first comments on the subject since being appointed chairman, reiterated her opposition to tax-payers' funds being used to pay for political campaigns.

In a thinly veiled reference to Labour's funding problems, Ms May said: "If political parties find it difficult to raise cash, then that is a matter for them. We have consistently said we don't believe in the concept of state funding," she said on BBC Radio 4's Westminster Hour. "What we need to raise is the real value of individuals being able to voluntarily donate money if they wish to do so."

Proposals to end private donations to parties are gaining ground in the Labour ranks and have the support of backbenchers and cabinet ministers. But Tony Blair has said he will not press ahead without a consensus among all the parties.