Conservative Party facing cash crisis as political uncertainty continues, say insiders Donors said to be unwilling to commit while party in turmoil

Theresa May’s leadership of the Conservative Party is costing it dearly, according to reports from party insiders.

The party is facing uncertainty both politically and financially and Sir Mick Davis, the party’s chief executive, is reported to have told supporters in recent meetings it urgently needs more donations to keep afloat.

One Tory fundraiser told the Financial Times: “It apparently has just £1.5m left in the bank, an incredibly low financial buffer, and no donors want to give any money because of the total chaos.”

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Donations needed

There are conflicting reports of why donors are reluctant to open their wallets.

A senior figure at Tory headquarters told the FT it was down to frustration at “the parliamentary party’s failure to get behind the prime minister”.

It apparently has just £1.5m left in the bank, an incredibly low financial buffer, and no donors want to give any money because of the total chaos. Tory fundraiser

While a party donor said they were frustrated by a “lack of consistency” and it had become obvious donors “have lost confidence in Number 10”.

Frustration

Claims the Conservative Campaign Headquarters (CCHQ) have not commented on.

Minutes of a recent meeting of party donors revealed the party’s income last year was £26m and its expenses were £25m, leaving an operating income of £1m, the FT reported.

Concerns have been raised by insiders about how the party would fund an election campaign given its current financial situation.

Election campaign

A Conservative MP told the paper: “It is true that we should be doing much better on fundraising. But it is far from dire, the donors just want clarity.”

Sir Mick, former chief of mining company Xstrata, is said to be planning to raise £32m in 2019 from donations.

But it is claimed many donors are refusing to increase funding to the party while Mrs May remains leader and it may be this situation which “will ultimately push May out”.

Calls for clarity

Some donors are alleged to have put their cash behind potential leadership campaign candidates such as former Brexit Secretary Dominic Raab.

The Daily Telegraph said City of London asset manager Jeremy Hosking was contemplating putting money behind other Eurosceptic causes.

A Tory party spokesperson told the FT: “CCHQ’s campaigning and fundraising work continues as usual.”