The BBC reports:

Talks have begun between Labour, the Tories and the Lib Dems to try to reach agreement on how parties are funded.

Sir Hayden Phillips, who published his review of party funding in March and is chairing the meeting, said there was “broad agreement” about most issues.

But recommendations on capping spending on campaigns and individual donations remained “obstacles”, he said.

… Labour is concerned that a cap on individual donations would threaten its historic link with the trade unions, while the Tories are likely to oppose tough limits on spending at local constituency level.