Yesterday, the Labour Party submitted its accounts to the Electoral Commission for 2024.
The Labour Party’s finances are not very rosy but they aren’t very troubling either. The party registered a €1 million in deficit spending for last year, compared to a €400,000 surplus for 2023. Overall, the Labour Party increased its expenditure from €1.46 million in 2023 to €3 million in 2024 and this is obviously attributed to the European parliament elections last year.
It registered up to €1.44 million in donations up from €1.32 million in 2023. It registered only €102,000 from membership fees (down from €115,000 in the previous year) and just up to €11,683 from commercial activities. The party however registered up to €400,000 in other income, €304,000 from rent and €103,000 from services. The cost for its election campaign at a staggering €1.76 million after already spending up to €235,000 in the previous year. Staff costs increased from €482,000 to €591,000.
It says it has up to €25 million in company and commercial assets which is surely inflated apart from a valuating its properties up to €13 million. This stuff looks good on paper, especially for banking reasons but it may not necessarily reflect reality. The Labour Party is also registering up to €3 million in debt with up to €7.2 million in liabilities. Up to €1.2 million of this debt is with banks. The Labour Party also has a spending tax bill of up to €1 million. The party also burned through its cash-reserve which was at €210,000 by the end of 2023 and was down to €3,000 by the end of 2024.
The Labour Party does have assets and that can cover its €3 million in debt, but it will struggle to keep achieving the same political results of the recent past, so pressure on expenditure will keep increasing. It also paid up to €159,893 in interest payments last year, up from €121,331 in the previous year.
The more you win in Maltese politics, the more you need to spend to maintain those victories. It is a vicious cycle that Labour is now experiencing — one the PN has already been through. The Labour Party will keep experiencing rising pressures in expenditure.
You can find the document here.
The Labour Party is hiding the source of origin of many big donations by breaking them in sell donations.
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