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The Labour party proxy and undeclared donations was a political scandal involving the British Labour Party in November and December 2007, when it was discovered that, contrary to legislation passed during the Blair Government, the Party had been receiving significant financial donations made anonymously via third parties.
The Conservative Party relies on donations mostly from individuals and companies; as well as these sources the Labour Party receives a significant portion of its donations from trade unions. For example, in the third quarter of 2009, eighteen political parties reported donations totalling £9,532,598 (excluding public funds).
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Khand was revealed of being the main funder of "Muslim Friends of Labour" which was reported by The Times newspaper as making a donation to the Labour Party of £300,000 in late 2007. Khand remained an active member of the Labour Party until his passing away.
As recently as 2004 the issue of large donations to a political party being linked to the award of a peerage arose when Paul Drayson donated £500,000 to the Labour Party. His company, Powderject (now part of Novartis), had also received a valuable government contract to make vaccines. [83]
Elon Musk is reported to be plotting the £79m donation, which would be by far the largest in British electoral history, via the British arm of his social media firm X