The Week: Advertising news - Labour faces agency probe

The Labour Party is facing new claims about undeclared donations after it was revealed that Saatchi & Saatchi was only paid a "token amount" for the work it did for last year's aborted election campaign.

According to a report in The Sunday Times, Labour pays Saatchis a monthly retainer of about £8,000, a figure described as "ridiculously low" by one source. Services offered to political parties at a discounted rate must be registered as "non-cash donations", but Labour has not declared the deal to the Electoral Commission. A Saatchis spokeswoman told The Sunday Times that the rate was "heavily discounted", but then called back to say the rate did not, in fact, represent a discount at all.