abour misplaced some 91,000 members in 2021 and ended the 12 months with a monetary deficit of greater than £5 million, the celebration’s newest accounts present.
The accounts, printed by the Electoral Fee, stated Labour’s membership fell from 523,332 on the finish of 2020 to 432,213 in a 12 months.
The figures had been described by Momentum as “alarming”, because the left-wing stress group pointed the finger of blame at Sir Keir Starmer’s management.
Revenue from membership charges dropped from £19.3 million to £16.2 million in 2021, although final 12 months’s charges had been comparable with 2017 and 2018 ranges – when membership boomed throughout Jeremy Corbyn’s management.
The celebration is on observe to returning to a agency monetary footing – with industrial earnings and donations rising considerably
The celebration treasurer’s report described 2021 as a “troublesome and demanding 12 months”, with redundancy pay-offs to chop prices in the long run contributing to the loss.
“Occasion funds do stay difficult with stress on earnings coinciding with growing prices,” the report stated.
The scale of Labour’s deficit went up from £1 million to £5.2 million.
The report continued: “The one-off price of the voluntary severance scheme contributed to the deficit outcome which required the allocation of money reserves to fund. For the avoidance of doubt, the Occasion stays debt free.”
However the report additionally stated there had been a return to extra regular operations after Covid, and a Labour spokesman stated the celebration was “on observe to returning to a agency monetary footing”.
In 2021, the celebration raised practically £10 million in donations, together with from members, supporters, main donors and unions, up from £5.7 million a 12 months earlier.
Industrial earnings elevated by £2.5 million in 2021.
Labour’s earnings was additionally considerably larger than the Conservative Occasion’s final 12 months, elevating practically £46 million in contrast with the Tories’ £32 million.
A Labour spokesman stated: “Because of Keir Starmer’s agency management and clear dedication to taking Labour again into energy, the celebration is on observe to returning to a agency monetary footing – with industrial earnings and donations rising considerably.”
However Momentum blamed Sir Keir’s failure to face by the ten coverage pledges made in the course of the 2019 management marketing campaign and his stance in the direction of commerce unions for the exodus of members.
The group tweeted: “These figures are alarming.
“Keir Starmer’s pledge-breaking & factional method have prompted an exodus of members and a monetary disaster for the Occasion.
“But the Management has welcomed these departures whereas alienating Labour’s affiliated commerce unions.”