These are troubled economic times. For the country. For the individual.

And, it would appear, for the Labour Party.

Much has been written about their financial woes. According to Electoral Commission figures, they are in hock to the tune of £17.8 million.

Small potatoes when compared to the national debt, but sizeable enough to give senior Labour figures something of a headache.

Not least because they will be asked to stump up the cash if the party defaults on the loans.

It's not widely advertised, but Labour's constitution is framed in such a way that members of the party's executive committee, including the Prime Minister, are personally liable for Labour's debts.

Something for them to mull over when planning their traditional summer trip to Tuscany.

Which, presumably, is what David Pitt-Watson did. The equity fund chairman was widely touted as the party's next general secretary, drafted in to replace the disgraced Peter Watt.

Despite being given Gordon Brown's blessing, Mr Pitt-Watson, a man of some wealth, turned the job down.

No matter how deep your pockets, the prospect of shelling out eighteen million quid would give anyone cause to think twice.

Still, the prospect of Mr Brown dipping into his retirement fund is pretty remote, not least because of the property portfolio the party holds at a local level.

And donors would be found to plug any shortfall in the short term.

Labour say that some in the Press Gallery have mistaken the review date of these loans for the repayment date, and, whilst none would say the coffers are overflowing, there is no financial meltdown imminent.

"We're living within our means", one insider told me.

With no general election looming, that would appear to be the case.

But as we approach polling day, Labour's headache may become a migraine.

After all, without a turnaround in their popularity it will be very difficult indeed to encourage donations.

If no way is found to limit their liability, Labour bosses may find their trip to Tuscany cancelled - and perhaps replaced by a permanent vacation to the Costa Del Sol.


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