Labour MPs are preparing to rebel next week over the government's reforms to political funding, demanding tougher measures including a permanent ban on cryptocurrency donations and significantly lower spending limits. The move comes amid mounting controversies over Nigel Farage's Reform UK party, which has received millions of pounds in cryptocurrency donations.
Four Amendments to Tighten Bill
MPs on the all-party anti-corruption group are canvassing support for four amendments to the representation of the people bill. These include a permanent ban on donations made in digital currencies, replacing the government's current moratorium. Liam Byrne, Labour chair of the business select committee, is leading the call for a cryptocurrency donation ban.
Byrne stated: "With each passing day, we learn new revelations about the extraordinary lengths to which Reform UK politicians will seemingly go in order to avoid proper oversight of their finances. Amendments to the representation of the people bill which my colleagues and I have tabled are vital safeguards against the wider threat that's seen £200m come flooding in to build a whole media political complex behind populists in Britain. We simply cannot afford to let our crumbling defences be undermined any further. I would urge any parliamentarian who genuinely cares about the integrity of UK democracy to back these amendments."
Byrne's amendment had at least 20 signatures by midday on Thursday.
Lower Spending Limits Proposed
Anneliese Dodds, former Labour cabinet minister, has tabled an amendment calling for campaign spending limits to be reduced by nearly a third, from £34 million to £24.4 million. She said: "We now have an arms race in funding political campaigns. The public want to see limits set at a more reasonable level."
Other Amendments Target Party Startup Funds and Foreign Interference
Yuan Yang, an ally of Andy Burnham, is calling for limits on how much money a party can have when it is first set up. This follows revelations that Rupert Lowe's far-right party Restore Britain started with £2.5 million in the bank without declaring its source. Another amendment from Mark Sewards would introduce checks on donations to assess the risk of foreign interference in British democracy.
Controversy Over Reform UK Funding
The moves to toughen the bill come amid a mounting controversy over the funding of Farage's Reform UK party, including millions of pounds from cryptocurrency entrepreneur Christopher Harborne. Questions are also being raised about financial links between senior Reform figures and another businessman, George Cottrell, a heavy user of cryptocurrencies.
The Guardian has revealed that several transactions involving both men and Reform's senior leadership were flagged by bankers to the National Crime Agency, with concerns over the true source of the money.
Broader Support for Stricter Measures
Many Labour MPs believe ministers have not gone far enough and are campaigning for changes on several issues. One proposal from Labour MP Stella Creasy is for a £100,000 cap on all individual donations, though this has less support than the other amendments. A spokesperson for the Ministry of Housing, Communities and Local Government said: "[We] will keep looking for ways to strengthen the bill as it works its way through parliament."
