Labour MPs Advocate for Political Donation Cap
Labour MPs are proposing a cap on UK-based donations to political parties, a measure they believe Andy Burnham will support if he becomes the next prime minister.
Labour MP Alex Sobel is advancing a plan to cap political donations at £1 million through an amendment to a bill returning to Parliament this month.
Currently, there are no restrictions on the amount UK-based donors can contribute to political parties and politicians.
Labour MPs are confident that the donations cap will receive backing from dozens of MPs, including Burnham, who is widely expected to succeed Prime Minister Sir Keir Starmer later this month.
However, Sir Keir has not supported such a cap, and the bill that could introduce it is scheduled to complete its remaining stages in the House of Commons before Burnham is expected to assume office on 20 July.
The Starmer government may withdraw the bill and wait until the next prime minister takes office. Alternatively, if Burnham becomes prime minister, he could attempt to introduce a donations cap once the bill progresses to the House of Lords.
Burnham has expressed support for a cap on political donations in an email seen by the BBC.
Burnham's Position on Donation Caps
In an email exchange in May, while campaigning as Labour's candidate in the Makerfield by-election, Burnham responded to questions about his stance on capping donations from Shaun Bowler, founder of the grassroots campaign WakeUpGB.
"There should be a cap on political donations," Burnham wrote.
Regarding the level, he added, "I think that would have to be subject to wider review of political funding but my gut feeling would suggest somewhere in the region of £500k."
He also stated that a donations cap "would guard against the perception of any one party being unduly influenced or swayed by one person or organisation."
Political Donations Data and Donor Influence
According to the Electoral Commission, UK political parties reported accepting £20.7 million in donations during the first quarter of 2026.
Reform UK received the largest share, £9.2 million, much of which came from two wealthy backers, Christopher Harborne and Ben Delo.
Last year, Harborne donated £9 million to Reform UK, marking the largest single donation to a UK political party by a living individual.
The Electoral Reform Society, a campaign group, has criticized the absence of a cap on UK donations, stating it "means that a handful of very wealthy individuals can continue to assert undue influence over our politics."
Details of Sobel's Proposed Amendment
Sobel's £1 million cap is proposed as an amendment to the Representation of the People Bill, currently progressing through the House of Commons.
Under his amendment, the government could reduce the cap following a transitional period ending in 2029.
The proposed cap applies only to individual donors; collective organizations such as trade unions, traditionally Labour's largest donors, are excluded.
Additional Amendments and Perspectives
Another amendment proposing a cap on political donations has been tabled by the Liberal Democrats and signed by several Labour MPs, including Dr Simon Opher.
Opher suggested a cap of £50,000, subject to review, along with "some sort of public funding for political parties."
He stated, "There's no way that politicians or parties ought to be able to take bungs of hundreds of thousands of pounds, either publicly or privately. It's the 21st century and we are better than that."
Transparency International, an anti-corruption organization, advocates for more comprehensive reforms.
Duncan Hames, senior director of policy and programmes at Transparency International, said, "The Representation of the People Bill takes some welcome steps, but it stops short of the one reform that matters most: a cap on how much any single donor can give."
He added, "Without it, the wealthiest will still be able to buy influence over our democracy in a way ordinary voters never could."
Government Proposals and Reform UK Response
The government has proposed a £100,000 annual cap on political donations from British citizens living overseas as part of the bill.
Ministers also plan to ban cryptocurrency donations to political parties, responding to a review of foreign financial interference in British politics.
Reform UK has criticized these planned restrictions, accusing Labour of "choking off legal funding for its main rival."
Reform and its key donors suggest Labour aims to hinder its fundraising efforts ahead of the next general election.
In April, Christopher Harborne, a Thailand-based businessman and key Reform UK donor, told the Telegraph he believed he was "the reason" the government announced the £100,000 cap on donations from British citizens living overseas.
He indicated he might challenge the cap in court and has not ruled out returning to the UK to circumvent it.
Labour Party Donations in the 2024 General Election
During the 2024 general election, the Labour Party received more donations than all other parties combined, totaling £9.5 million.
More than £8 million of Labour's donations came from 10 sources, including two trade unions, former Autoglass boss Gary Lubner, hedge fund managers Martin Taylor and Stuart Roden, sculptor Antony Gormley, production company Toledo Productions, tech investor Danny Luhde-Thompson, and former professional poker player Derek Webb, founder of the Campaign for Fairer Gambling.
