The GMB union, one of Britain's largest trade unions, has written to Labour MPs urging them not to vote for a cap on political donations, warning that such a move could threaten union funding for the party. The amendments to the representation of the people bill, which would cap donations at either £100,000 or £1 million, are set to be voted on next week.
Union's Concerns Over Unintended Consequences
In a letter sent to more than 80 MPs who are union members, the GMB stated: “We believe this amendment risks having significant unintended consequences.” The union argued that trade unions are already subject to stringent statutory regulation regarding political expenditure, including opt-out rights for members and transparency requirements. It emphasized that affiliation arrangements are fundamentally different from political donations and should not be treated as equivalent.
Other major Labour-affiliated unions are reported to share these concerns. The letter highlights the ongoing battle over political donations, which has historically been resisted by both the Conservatives—who rely on wealthy individual donors—and Labour, which is largely funded by trade unions.
Rise in Large Donations Sparks Controversy
Research by Transparency International reveals that the proportion of political donations from individuals and companies giving £1 million or more has surged from 1% in 2015 to 35% in 2024. This trend has intensified scrutiny of political funding, particularly in light of revelations about donations to Reform UK from crypto billionaire Christopher Harborne and convicted fraudster George Cottrell.
The Times reported on Thursday that police are investigating £500,000 in donations made to Reform by Cottrell's mother, Fiona, while parliamentary authorities are examining gifts from both Harborne and Cottrell. Earlier this week, the Guardian disclosed that multiple transactions to Nigel Farage and his deputy Richard Tice had been flagged as potentially suspicious to the National Crime Agency.
Labour Whips Urge MPs to Heed Union Warning
Sources indicate that Labour whips have been contacting MPs, urging them to follow the GMB's advice and not support the cap. This has led some MPs to withdraw their backing for the amendments. The proposed changes to the bill are part of broader efforts to curb the influence of large sums in politics, including an outright ban on cryptocurrency donations.
Labour MPs had hoped that the Reform funding controversy and the potential arrival of Andy Burnham in Downing Street would pave the way for stricter donation rules. While campaigning, Burnham expressed support for a donations cap, suggesting a level around £500,000. However, a spokesperson for Burnham did not respond to requests for comment.
Backbench Amendments and Ministerial Opposition
Ministers are preparing for a clash with backbenchers over the proposed amendments. While the government has proposed a £100,000 cap on donations from British citizens living abroad, it has not extended this to domestic donors, prompting protests from some Labour MPs. Stella Creasy, MP for Walthamstow, has tabled an amendment capping individual donations at £100,000, while Alex Sobel has proposed a £1 million limit.
If selected by the Speaker, the amendments will be debated on Tuesday when the bill returns to the House of Commons. Creasy wrote in the Guardian on Friday: “Whether a million-pound individual donation from a private benefactor comes from overseas or from a UK-based billionaire, the public understand the risk remains broadly the same: that political outcomes are being sold to the highest bidder rather than being fought for through a battle of ideas.”
