Presents the Government's proposals on party funding, which follow the approach outlined by Sir Hayden Phillips in "Strengthening Democracy: Fair and Sustainable Funding of Political Parties - The Review of the Funding of Political Parties (March 2007)". This work reviews the case for a donation cap and public funding of political parties.

The Government agrees with the CSPL recommendation that responsibility for setting electoral boundaries should be removed from the Commission and the Boundary Committee for England should become an independent body. It is also widely agreed that perceived 'excessive' spending by political parties is a cause of public concern. The Government will update and broaden the definition of campaign spending and will aim for the agreement of all parties based on Sir Hayden's package of proposals for comprehensive spending limits.The paper also reviews the case for a donation cap and public funding of political parties. Sir Hayden had suggested a cap of GBP 50,000 but the Government believes a lower limit would be appropriate. Greater transparency on donations is essential. On public funding, the Government acknowledges the wide differences of opinion on how best to achieve reform and does not intend to legislate until some consensus is reached with all parties.