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Labour Party faces bankruptcy amid antisemitism allegations


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NEC members are worried that they might have to personally pick up the bill for these hypothetical legal battles if and when the EHRC hands down a negative decision next year.

Zachary Keyser

October 13, 2019

Members of the National Executive Committee (NEC), the governing body of the UK Labour Party, have privately expressed concern that the Equality and Human Rights Commission's (EHRC) antisemitism probe could effectively bankrupt the party if the watchdog hands down a negative ruling, according to a report by The Independent.

The report states that the main point of contention was discussed during a recent NEC meeting. Members of the executive are worried that a bleak determination by the commission proclaiming improper handling of antisemitic abuses within the Labour Party could open them up to a financially crippling amount of lawsuits from former members of their party, ending in considerable damages going to the plaintiffs of many these cases, according to the report.

Many members of the NEC are worried about who will be held financially responsible for the hypothetical scenario. "Party officials and allies of Jeremy Corbyn"  promptly "shut down" the discussion at the meeting after some wondered if the committee had a strategy in play for handling the legal fees for litigation proceedings and possible settlements awaiting them on the other side of the commission's verdict, according to the report.

Labour has already struggled financially this year, reporting losses of nearly 655,000 pounds sterling this year as opposed to a 1.7 million pounds sterling gain in party sponsorship the year before, mainly due to the loss of recent membership. The party's finances could be further damaged if it is forced to enter into a general election later on in the year, according The Independent.

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