Millions of members of the Co-operative Group will vote next year on whether to withdraw £1m in annual funding from the Co-operative party, as a public survey cast doubt over the financial link.
The vote will formally test a relationship that has been in place for almost a century and is likely to take place just after the general election on 7 May.
The Co-op party is allied with the Labour party and has 32 MPs in parliament, including shadow chancellor Ed Balls, and it relies on the Co-op chain of supermarkets and funeral parlours for around 70% of its funding.
The Co-op Group confirmed its decision to hold a vote on political donations as it published the long-awaited results of a survey of the public conducted in February.
The survey asked: “To what extent do you think it is appropriate or inappropriate for big businesses to donate money to political parties?” Some 74% replied that it was inappropriate. Some 63% of respondents also said they were not aware that the Co-op was a financial supporter of the Co-op party.
Gareth Thomas, MP and chair of the Co-op party, said the outcome of the poll should not be surprising given the way the question was asked. “At a time when trust in big business and politics is at an all time low it’s not surprising that people don’t like the idea of ‘big business’ donating to political parties. But a Populus poll undertaken at the same time as ‘have your say’ shows that in fact only 11% of the public think it is inappropriate for the Co-operative Group to make financial contributions to the Co-operative party and more than double the number of people think it is appropriate for them to do so.”
As well as asking about political donations, the Co-op Group’s survey had also asked about the importance of dividend payments to members - 60% of respondents said it was an important part of being a member of the Co-op Group, although such payments are suspended at the loss-making group. Lower prices and locally sourced food were regarded as reasons to shop in the supermarkets.
Political donations will now be put to a vote the next annual meeting in May, by which time changes to the way the business is run will mean that a “one member one vote” system is in operation. This replaces the previous arrangement where around 100 delegates represented the views of up to seven million members of the Co-op Group and the independent societies which own the business.
It is not immediately clear how they will vote at the annual meeting. In the past, donations have been voted on at half yearly meetings attended by delegates representing the wider members. The last time a vote was held was November 2013, when it was agreed that £1m could be used for political donations. Of that £625,000 had been handed the Co-op party for the 12 month period which is just ending.
