Corbyn activists in election probe

Group raised £120,000 but declared £38,000 spend

THE Jeremy Corbyn-backing Momentum group faced an official investigation into its election spending last night after it declared only £38,000 of expenditure – while raising more than £120,000.

The hard-Left grassroots organisation was credited with helping the Labour leader deprive Theresa May of a majority in June.

But yesterday the Electoral Commission said it had ‘reasonable grounds’ to suspect it may have broken spending limits – and therefore the law – by not properly declaring its donations.

Despite its pivotal role during the election campaign, Momentum claimed in its official return that it spent just £38,742. But documents uncovered by the Daily Mail show it raised more than £120,000 in the four weeks before polling day.

In a video posted on Momentum’s crowd-funding page and social media platforms a month ahead of the election, former broadcaster Paul Mason told supporters: ‘At Momentum, we’ve got a plan to use technology, mobilisation and the hundreds of thousands of people who support Jeremy Corbyn ... to deliver victory for the most radical Labour programme you have ever seen. ‘But we need money. A lot of it.’ More than £40,000 was raised on the crowd-funding page on the first day alone, with more than £120,000 raised online during the final four weeks up to polling day.

Momentum is credited with helping Labour gain 30 seats. It organised mass campaign weekends in around a dozen constituencies that turned red, including Croydon Central, Derby North and Brighton Kemptown.

As a non-party campaign that told voters to back a specific party, Momentum was permitted to spend £39,000 during the election.

It could have spent above the limit if Labour had granted it permission to use part of its expenditure allowance, but the party did not recognise the group as part of its official campaign.

Electoral Commission records show that Momentum reported total spending of £38,742.54 across the UK during the campaign, only £257.46 below the £39,000 limit.

The Political Parties, Elections and Referendums Act 2000 (PPERA) states any membership political group, such as Momentum, must declare any donations above £7,500. No such donations to Momentum have been registered with the Commission.

The Commission said that after examining Momentum’s return it had decided to investigate whether it spent in excess of the spending limits, submitted a return that did not include accurate donation information or submitted a return that did not include all invoices for payments of more than £200.

The watchdog added: ‘It is possible that during the course of the investigation, the Commission will identify potential contraventions and/or offences under PPERA other than those set out above.’ Its director of political finance and regulation and legal counsel, Bob Posner, said: ‘There is significant public interest in us investigating Momentum.’

Last night Momentum said it had delivered a ‘low budget’ campaign thanks to the ‘energy’ of its volunteers. A spokesman said: ‘Much of the Electoral Commission investigation refers to a series of administrative errors that can be easily rectified. Momentum put a lot of effort and resources into detailed budgeting and financial procedures during the election to ensure full compliance.

‘We will fully comply with the investigation going forward.’

‘We need money. A lot of it’