Green Party plans to increase membership fees amid legal woes

A bitter legal battle could blow a hole in the Green Party of England Wales's general election campaign funds.

The BBC understands courts could force the party to pay between £200,000 and £400,000 if it loses a case against former deputy leader Dr Shahrar Ali.

The party's financial auditors note the case has left "uncertainty" about its ability to keep running normally.

The Greens are proposing a 50% increase in membership fees to build funds.

If voted through at the Green Party Conference next week, the cost of being a member will rise from £3.33 a month to £5 a month, with a £6 a year fee for concessions.

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Dr Ali, an academic who was joint deputy leader of the party between 2014 and 2016, was at the centre of an internal row about the Green Party's approach to trans people.

He has stood unsuccessfully for the leadership three times, but claims senior Green Party figures "collaborated" to force him out of his post as policing spokesman for the party, due to his "gender critical" views.

The Green Party claim he was removed because he had become a "divisive force" in the party.

A spokesperson for the party declined to give a figure on how much the court case is expected to cost. But the court documents say the party has said it will take every action available to recover the legal costs it has and will continue to incur from Dr Ali.

The BBC understands several other Green Party activists who hold similar views are planning legal action against the party off the back of Dr Ali's case.

Dr Shahrar Ali claims he was forced out of his party role over his views

The UK's political parties are in full fund raising mode, with a general election expected as early as next spring.

The Green Party made big gains at this year's local elections and has ambitions to return two or three MPs to Westminster, an increase on its single representative in the Commons at present.

But it has told members it needs the resources to match its ambitions.

According to its latest accounts the party was left with cash shortfall last year, having spent £80,000 more than the £3.15m it raised.

As the party has increased its income - up from £366,000 in 2007 - it has steadily taken on debt, currently holding more liabilities than assets.

The Green Party may have to fund fewer electoral candidates if it is hit with a large legal bill

Major parties having no savings and "spending more than they generate" in any one year is "actually very common" according to party finance expert Prof Justin Fisher, Director of Policy Unit at Brunel University.

There is a risk, however, the party will progress in a diminished form, creating a vicious circle of a lower-profile leading to less income.

Less income means the party "would be less likely they could put up as many candidates," Dr Fisher said.

All general election candidates require a deposit of £500, which they get back if they win more than 5% of the total votes in the constituency.

The Green Party of England and Wales has strict rules around "ethical business fundraising" - refusing money from donors involved in polluting industries, the arms trade or pornography.

This means "it is always a challenge to keep us going" according to Baroness Jenny Jones, a Green Party peer in the House of Lords.

"We don't get money from big business or anywhere like that," she said.

"We've been offered a lot of money in the past and we've turned it down."

Legal challenges

Other parties have faced legal challenges in recent years, but the Greens do not have a large pool of institutional donors that other national parties can rely on.

Labour is fighting a legal battle with former employees from the Corbyn-era, which the BBC understands could cost between £3m to around £4m. At the last election, Labour was able to raise £5.4m in donations - 25 times more than the Green Party managed.

A Green Party spokesperson said: "Like many organisations, the Green Party is facing some challenging financial times, however it is wrong to suggest that the party has anything other than a very bright future and strong public support.

"We are confident that we will be in a better position than ever before as we go into the next general election.

"We have seen an increase in significant donations in recent months from people backing our work to get the next generation of Green MPs elected to build a fairer, greener future.

"We hugely value the work of our local parties and all our activists who are the face and voice of the Green Party in their communities and we continue to support them through our staff team and central party resources.

"On the case we are currently defending in court, we are confident of our position and will not be commenting further while proceedings are ongoing."

Commenting on the legal case brought by Dr Ali, the party said it "remains proud of its focus on equality and human rights for all and our support for the trans community".

CORRECTION: This article was amended on 30 September to correct a reference in headlines to the proposed increase in Green Party membership fees as a doubling.