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Labour Party risks bankruptcy over antisemitism investigation, executive members fear
https://www.independent.co.uk/news/uk/politics/labour-party-bankruptcy-antisemitism-investigation-corbyn-executive-a9153561.htmlMembers of Labour’s ruling executive have privately voiced fears that the party could be bankrupted as a result of an official inquiry into antisemitism, The Independent has learnt.
Members of the National Executive Committee (NEC) have expressed concerns that a damning verdict from the equalities watchdog about Labour’s handling of antisemitic abuse could open the party up to a slew of lawsuits from Jewish members and former members, possibly resulting in hefty damages having to be paid.
It is understood that the issue was discussed at a recent NEC meeting, with members of the committee voicing major concerns about the fallout from the probe and who would be financially responsible. Party bosses were asked what protections are in place for a scenario in which Labour has to cover the cost of multiple legal battles and potential payouts. Two sources said the discussion was quickly “shut down” by party officials and allies of Jeremy Corbyn, and that the committee remains in the dark about the potential financial implications.
Some NEC members are worried that the financial situation could become unmanageable if the Equality and Human Rights Commission (EHRC) finds that the party has failed to protect Jewish members. Amid growing concern about the outcome of the inquiry, several NEC members are understood to have asked officials what indemnity Labour has, following fears that members of the committee may have to personally foot the bill if the party runs out of money. They believe that, like trustees of a charity, they are legally and financially responsible for the party.
Members of the National Executive Committee (NEC) have expressed concerns that a damning verdict from the equalities watchdog about Labour’s handling of antisemitic abuse could open the party up to a slew of lawsuits from Jewish members and former members, possibly resulting in hefty damages having to be paid.
It is understood that the issue was discussed at a recent NEC meeting, with members of the committee voicing major concerns about the fallout from the probe and who would be financially responsible. Party bosses were asked what protections are in place for a scenario in which Labour has to cover the cost of multiple legal battles and potential payouts. Two sources said the discussion was quickly “shut down” by party officials and allies of Jeremy Corbyn, and that the committee remains in the dark about the potential financial implications.
Some NEC members are worried that the financial situation could become unmanageable if the Equality and Human Rights Commission (EHRC) finds that the party has failed to protect Jewish members. Amid growing concern about the outcome of the inquiry, several NEC members are understood to have asked officials what indemnity Labour has, following fears that members of the committee may have to personally foot the bill if the party runs out of money. They believe that, like trustees of a charity, they are legally and financially responsible for the party.
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