The idea is to set-up a giant trust called the UK Democracy Trust that is funded my philanthropists and any other UK or foreign individuals or companies.
The trust would then set-up a payout structure to all political parties, in order that taxpayers or party donators would no longer have to do so.
The structure could be say £15mln per election to each major political party, £5mln a year to medium size parties, and £1mln a year to fledgeling parties. A total payout of say £75-100 million if there are only 3 parties per size class.
(there would be fair eligibility requirements to be classes in a particular funding segment)
The funding would come out of the accrued earnings of the trust, which would have to be approximately £1-1.5bln in size.
Donors would be encourage to donate in support of a true democracy where political parties are not funded directly so as to reduce conflicts of interest, etc. etc. Hence the reason it would be called the Democracy Trust. As such large donors could be publicly recognised for their donations.
All donations would also be tax deductible, as the trust would be a registered charity.
Why is this idea important?
The idea is important, as it removes the issue of political parties being directly financed by individuals, companies and unions, which in the past has lead to conflicts of interest which have been to the detriment of good government and to democracy in general.
The idea also plays on the patriotism of the donators and does not force the taxpayer to finance the scheme. For example if wealthy individuals are indeed appreciative of the democracy that enabled them to accrue their wealth they should be encouraged to support that democracy in an unbiased political manner.
The way the trust funds parties, may also support some smaller parties giving them an additional voice.