Following last night's report on More4 and Channel 4 News, Cathy Newman's phone hasn't stopped ringing. She explains what happened after her report was aired last night.
Reaction was swift after we revealed the true extent of labour's financial woes. Fifteen per cent of the party's backroom staff could be sacked in their latest manoeuvre to drum up funds for party campaigns.
"My phone was sizzling red hot last night after my report about labour's funding crisis. The extent of the party's indebtedness clearly doesn't make comfortable viewing for the people at the top.
"And it's not a very pleasant situation either for the 230 people who work for the party. Labour may have to lose up to 15 per cent of its staff to save money so it can pay back the £22m it now owes wealthy individuals and the banks.
"The unions are hopping mad and what's made them really see red is why the party is in this dire financial situation in the first place.
"Well, just to recap, here's why.
"Rich people no longer want to donate to political parties and labour in particular because they don’t want the press to sling mud at them. The mud slinging really began in earnest when Fleet Street started to suspect that the wealthy were being rewarded with peerages or positions in return for keeping the parties afloat.
"That’s a central question in the police investigation into whether Lord Levy, the prime minister's chief fundraiser, offered peerages to people who've leant or donated money to the party.
"Tony Blair's already said he's going to bring in new laws which will probably end up limiting the overall expenditure of political parties. But it's still unclear whether there will be a cap on the amount individuals can donate.
"What is clear is that the unions, which now contribute three quarters of labour's cash, can expect to be passed the prime ministerial begging bowl very soon. Even if the rich and famous don't want to bail Labour out, the unions might.
Cathy spoke to Channel 4 Radio's Morning Report