Labour's credit card slated for sky-high interest

Published on Wednesday 24 September 2008 22:30

THE cash-strapped Labour Party is urging members to sign up for a credit card that could seriously damage their wealth.

Delegates at the party's conference in Manchester are being offered the Visa card in exchange for a 15 donation.

But financial experts have warned that the 18.9 per cent APR interest rate is cripplingly high and that much better deals are available.

Labour has three credit cards, but only the most expensive was offered to delegates at Manchester.

Financial experts said consumers should shop around.

David Kuo, head of personal finance at money website Fool.co.uk, said: "We should never allow emotions to cloud our financial judgment. In the case of political affinity cards, politics and money just do not mix."

Other high street credit cards offer interest rates up to 10.4 per cent lower.

A Labour spokesman said all the main political parties in the UK offered affinity cards and that the deal was "comparable" with others.

"We offer a range of services to our members, as do almost all large membership organisations," he added.

The Labour Party still has debts of 16 million, despite a 1 million donation from JK Rowling, the Harry Potter author, which cheered delegates at the start of conference week.

Total debts have fallen by 11 million since 2005, and Jack Dromey, the party's treasurer, has said Labour is making "real progress" with its finances.

He said the party made a 7.5 million surplus last year and was no longer relying on overdrafts.

Glenrothes election date

THE Glenrothes by-election is set to be held on 6 November, it emerged yesterday.

No official announcement has been made,

but it is understood Labour activists have been told to gear up for an election on that date.

The party will face a tough battle to retain the seat, with recent opinion polls showing strong support for the SNP.

Lindsay Roy, the rector at Gordon Brown's old school in Kirkcaldy, is Labour's candidate. Activists yesterday said they feared a backlash from the proposed Lloyds TSB takeover of HBOS, which has many employees in the seat.