The Labour Party is implementing a new ERP system from Microsoft to help get its finances in order.

The opposition party has chosen Azzure IT as its implementation partner in switching ERP software to the Microsoft Dynamics NAV finance system, and is seeking "significant long-term efficiency gains and cost savings" as a result.

Labour said its existing system was "inefficient and expensive to run". The new finance system will go live this month.

Dynamics NAV records all the financial information of the National Labour Party, controls costs through the purchase order system, and delivers real time reporting to the senior management team, the executive board and the National Executive Committee.

Cost savings and improved efficiency are the key benefits expected from the new 50 user system, which is accessible at all offices across the UK, including its HQs in London and Newcastle and 11 other regional and national offices.

A Labour Party spokesperson said: "Previously, budget holders and department executives who wanted to see the detail of their spending had to make a request by email. Now they are able to login to the system directly, access information in real time and drill down to see the detail of individual transactions."

They added: "It makes life a great deal easier for them and saves the finance team a lot of time too, which is particularly significant in the run up to an election, when it can amount to several days' work."

The annual license fees of the Microsoft Dynamics NAV system are said to be "substantially lower".