Labour has admitted facing "acute cash flow problems" as Electoral Commission figures revealed the main political parties owe a total of £60m in loans.

The figures show the Tories owe £35.3m, Labour £23.4m and the Lib Dems £1.1m. The Scottish National Party owes £525,393 and Plaid Cymru £352,000.

It is the first time parties have had to declare all loans above £5,000.
While the Tories owe more, Labour loans need to be repaid sooner - £1.5m is due now, £17m by the end of 2007.
In a statement Labour said it was in the midst of a "difficult financial year" and was restructuring to cut costs and to extend the repayment date of most of its loans.

But biotechnology entrepreneur Sir Christopher Evans, who gave a £1m commercial loan, and computer tycoon Gordon Crawford, who lent £500,000, want their money back imminently.

Labour said it was holding discussions with them, as "any organisation that is seeking to manage its cash flow in difficult circumstances" would do.

Law change
Sir Christopher has said repayment is expected "within a matter of months" and a further £17m from Labour lenders is due to be repaid by the end of 2007.

The Conservatives owe more than Labour, but say almost £16m was spent on buying the freehold of the party's former headquarters in Smith Square - which it now hopes to sell.

A change in the law in September means all loans of £5,000 and above to main political party offices have to be declared, bringing rules for loans into line with those for donations.

Previously any loans made with a commercial rate of interest did not have to be declared.

Former Labour Party treasurer Lady Prosser told the BBC that the debt was a result of new legislation.

She said some major donors were "rather shy" about being named - for fear of being accused of "giving money to buy something".

The figures showed that in the third quarter of 2006, the Conservatives received donations worth £4m, Labour £3.2m and the Lib Dems £1.1m.

'More influence'

Electoral Commission chief executive Peter Wardle said the parties had made "good progress" in reporting loans but some had struggled to report donations on time.

Labour declared £207,155 of donations late, the Tories £168,259 and the Lib Dems £23,181.

Lib Dem chief executive Lord Rennard said the size of the amounts owed by Labour and the Conservatives could have an impact on the health of democracy.