On the verge of ...

John Prescott today warns the Labour party that it is £20m in debt, "on the verge of bankruptcy"

John Prescott is, by the way, hoping to become Labour party Treasurer. The introductory piece in the Guardian is here, the main article here.

Mr Prescott seems to blame Gordon Brown for the Labour Party's problems, although he doesn't seem to condemn him for the state of the country's economy. He says,... the so-called "election that never was", in 2007, cost the party £1.5m in preparation costs ...

Prescott also thanks the various backers who are, currently, keeping the party afloat, namely,

... party staff and volunteers, trade union contributions, high value donations and the goodwill of the Co-op bank ...

Iain Dale highlights Unite's cost-cutting efforts, which somehow managed to increase the Union's 'surplus' by more than £9million in a mere twelve months - a truly astonishing sum of money in these cash-strapped times. And Bob Crow's salary has been increased by 12%. So it would seem that, at the moment at least, the Unions are flush with funds.

When an organisation is deep in debt it's easy for it to be pressurised by those with a bit of cash to push their way and because of this Mrs R thinks the next few months in the life of the Labour Party will be more than a little interesting. She thinks it's not only on the verge of bankruptcy, time will tell.

Mrs R hasn't the time to write more, so suggests you read what other bloggers have to say about this - John Ward in Medway "Labour almost Bankrupt" and Raedwald "Thieves operate in this area".

Edit : And Iain Dale has an idea that might help save Labour from bankruptcy.

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