UK MPs Debate Cap on Mega-Donations as Political Funding Bill Delayed
UK MPs Debate Cap on Mega-Donations as Funding Bill Delayed

The representation of the people bill, which was due for its third reading in parliament, has been delayed until after the summer recess, giving incoming Prime Minister Andy Burnham time to shape the legislation. The bill includes proposals to extend the franchise to 16- and 17-year-olds and new voter registration rules, but attention has focused on measures to curb the influence of mega-donations in UK politics.

Rise of Mega-Donations

According to Transparency International's head of research, Steve Goodrich, the rise of mega-donations is undermining democracy. In 2025, Christopher Harborne gave £9 million to Reform UK, the largest single donation by a living donor to a British party. It would take the average person 3,000 years to save enough to match it. Goodrich noted an "increasing Americanisation of British politics, where money talks the loudest." In 2015, only 1% of private donations to UK parties came from individuals or companies giving £1 million or more; by 2024, this had risen to over a third.

Bill's Provisions and Amendments

The bill includes an annual £100,000 limit on donations from British citizens living abroad and new checks to prevent foreign actors from using UK shell companies for political donations. It also imposes a temporary moratorium on cryptocurrency donations. Labour MPs Stella Creasy and Alex Sobel have proposed amendments to cap donations at £100,000 and £1 million, respectively. Under Creasy's £100,000 cap, Reform would have lost an estimated 85% of its registered donations in 2025.

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However, Kiran Stacey, the Guardian's policy editor, noted a historical standoff between Labour and Conservatives on limiting donations, as both parties benefit from large donations—Labour from unions and Conservatives from wealthy individuals.

Global Context and Public Opinion

The UK is an outlier among Western democracies, as countries like Canada, Australia, Italy, Belgium, and the Netherlands impose caps on political donations. Canada bans corporate and trade union donations and limits individual donations to $1,775 per year. A majority of Britons believe big money has too much sway in politics, with voters across all major parties united on the issue. Goodrich argues that introducing a cap would restore faith in democracy.

The delay of the bill comes amid ongoing scrutiny of Nigel Farage's finances, including a £5 million donation from Harborne, which Farage insists was personal. The death of Ann Widdecombe has also sparked debates on politician security, with Reform UK arguing that restricting party finances could imperil its representatives.

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