the indefinite retention of local parties moneys is in breach of the constitution

The Green Party of England and Wales is an association where all membership fees are collected centrally in the first instance as supporters join online. Membership fees belong to Local Parties which are autonomous legal entities. Unlike Trade Union branches or Labour Party’s Consitutency Parties, Local Green Parties are not “agents” of the GPEW.

As per the GPEW’s constitution, the arrangement is that an agreed percentage of the sum accrued from members fees is retained by the Executive to cover central running costs and the rest is divided up beween Local Parties and Regional Parties. The amount retained by GPEW at present is 82% and Local and Regional Parties receive 18% of the fees.

At the 2023 Spring Conference, the membership subscription was increased to £5 per month. There was no mention of any proposed change to moneys or “capitations” to be returned to Local Parties and Regional Parties.

At a meeting of the Executive held on 12th September 2023 however, a decision was made by its elected members that the payment of the 2022 and 2023 capitations already suspended “indefinitely”, would be cancelled altogether. The decision was conveyed to Local Party chairs and treasurers in an email from the Chair of the Executive Jon Nott sent on 5th October.

Our investigation has revealed that such decison was then the objet of a request for a ruling from the Standing Orders Committee by a member as to whether GPEX had the authority to suspend and/or cancel capitations to local parties without being ratified by Conference.

It now would appear that as GPEX did not seek permission from Conference to have the cancellation of capitations ratified, the indefinite retention of Local Parties’ moneys is in breach of the constitution.

According to The Green Party (England & Wales) Reports and Financial Statements Year ended 31 December 2022, Local and Regional Parties’ capitations accrued during that year was £360,226.

Due to the agreed rise in the membership fee to £5 and an increase in the number of members in 2023, capitations for 2023 should be a larger amount than at the year end of 2022.

When this will large sum of money unconstitutionalluy retained by GPEX be paid back to Local Parties – who are in effect creditors – has not been announced yet.

So, how confident should Local Parties’ treasurers be that they will ever get their capitations back at all ?

According to the Electoral Commission data from  24^th August 2024, The Green Party’s income at the year end 31^st December 2023 was £3,819,156 and the expenditure amounted to £3,724,134.  In other words, the party had then a grand total of £95,022 in the bank.

Regular visitors to The Green Light will also be aware that due to the loss of Dr Shahrar Ali versus Liz Reason and Jon Nott from the GPEW civil court case, the sum of £99,100 has had to be paid to the former Deputy Leader. It has since been estimated that the total cost of this court case could rise to £500,000, but members will not know the exact overall costs until the balance sheet for the year 2024 is published. This will not be available until the 2025 treasurer’s report is presented at the AGM.

Greens in Exile posted  that the party has spent £1m in legal fees over the last four years.

In his report to the AGM 2024, Jon Nott, Chair of the GPEW’s Executive stated that whilst the membership has reached 58,000, a reassuring £850,000 was also raised during the 6 weeks of the General Election campaign.

How much will be left in the bank when all the legal costs have been paid remains unclear, but meanwhile, questions can be put directly to the Finance Officer Julian Cusack and Jon Nott, Chair of the Executive Committee.

julian@suffolkcoastal.greenparty.org.uk

jon.nott@greenparty.org.uk.

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