As Labour's representation of the people bill returns to the House of Commons, MPs are urged to strengthen it amid growing scrutiny of Reform UK's financing. The bill, one of Keir Starmer's final acts as prime minister, aims to prevent foreign companies from donating to UK parties and obliges parties to scrutinize donors more rigorously.
Mega-donor influence on the rise
Transparency International noted that in 2015, only 1% of private donations to political parties came from individuals or companies giving £1m or more. By 2024, that figure had risen to over a third. The anti-corruption campaign group argued that parties' reliance on wealthy donors increases the likelihood of undue influence on policymaking.
Polling cited by Transparency International showed that 84% of the public believe wealthy individuals use donations to further their personal interests. Over two-thirds support a cap on donations of £50,000 or less, or an outright ban.
Amendments to tighten rules
Labour MPs have tabled several amendments. Liam Byrne, chair of the business and trade select committee, calls for a permanent ban on crypto donations, which the bill currently envisages as temporary. Given crypto's suitability for anonymous transfers and its association with criminal activity, this move seems obvious, according to Byrne.
Yuan Yang, a Labour backbencher and former Financial Times journalist, wants new parties to face more financing scrutiny. Anneliese Dodds, former development minister, proposes cutting overall campaign spending limits by about a third.
Call for a £100,000 cap
Stella Creasy, a campaigning backbencher, advocates a £100,000 annual ceiling on individual donations. The Institute for Public Policy Research (IPPR) supports this, recommending the cap be lowered to £10,000 over the next decade. The IPPR also calls for compulsory voting to reverse disconnection from politics.
Creasy's amendment has less support, as MPs fear a donations cap could cause party funding to collapse, necessitating taxpayer support. However, the IPPR points to France, which has a €7,500 (£6,390) cap and state funding, and Germany, which also provides state funding.
Dangerous nexus of tech billionaires and far-right politics
An IPPR report highlighted a dangerous alliance between Silicon Valley fortunes and far-right, nativist politics. Authors noted "new alliances emerging between new, extractive forms of capital and a paradoxically global network of ethnonationalists."
Elon Musk has openly backed Rupert Lowe, the Restore Britain MP who advocates mass deportations. Musk's platform X constantly amplifies Lowe's views. Donald Trump's presidency has shown how tech billionaires' economic power translates into political heft, with Musk given his own government department and crypto figures pardoned.
Urgency of reform
Heather Stewart, writing for the Guardian, argues that Britain's lax party finance rules have long been criticized, but the emergence of billionaires keen to sweep aside impediments makes reform urgent. She warns that Singapore-on-Thames style deregulation and low taxes may attract big-money donors, especially with a Labour government that raised capital gains tax.
Stewart concludes: "It is wrong in principle, and dangerous in practice, for a new class of mega-donors to bankroll British politics. Donations should be capped; and if Starmer does not act, his successor must."
