Tax relief for all small donations to political parties would encourage more people to become involved in the political process, the Conservatives have said.

Tory chairman Theresa May told BBC radio last night that while her party is against full state funding for political parties, "what we need to raise is the real value of individuals being able to voluntarily donate money if they wish to do so".

The prime minister is believed to be considering using his speech to the TUC next month to announce changes to the system of funding.