Key facts
- Andy Burnham has withdrawn support for capping political donations.
- Trade unions successfully lobbied against proposed donation caps.
- Activists and Labour MPs are angered by the reversal.
- The government prioritizes votes at 16 and guarding against foreign interference in elections.
- A compromise amendment proposing a £500,000 cap has not secured ministerial support.
Andy Burnham has withdrawn his support for capping political donations, a decision that has drawn criticism from activists and Labour MPs who have long advocated for stricter campaign finance regulations. The move represents a significant retreat from Burnham's previous commitment to implement such a cap.
The prime minister's decision comes after a lobbying effort by Labour's trade union backers, who argued that proposed amendments to the elections bill could impede their ability to contribute financially to the party. Burnham had previously indicated support for a £500,000 cap on individual or organizational donations, a stance he communicated to electoral reform campaigner Shaun Bowler.
Activists like Stella Creasy, who has tabled an amendment for a donation cap, expressed dismay, stating that "millionaires are increasingly treating British politics as their plaything." Shaun Bowler echoed this sentiment, accusing Burnham of breaking a promise to voters and to him personally. Darren Hughes of the Electoral Reform Society highlighted the corrosive effect of large donations on public trust.
A Labour source indicated that the government's priority for the elections bill remains lowering the voting age to 16 and strengthening rules against foreign interference. Some Labour MPs, however, believe the bill is too "timid" and are pushing for stronger measures, including potential bans on cryptocurrency donations and crackdowns on social media misinformation.
While the government intends to cap donations from British people living abroad at £100,000, a significant debate is expected over domestic donation limits. Creasy has proposed a revised amendment suggesting a £500,000 cap that could be adjusted by ministers, but this compromise has not yet garnered sufficient support. Sources suggest that capping donations is not a priority for Burnham and not a battle he wishes to fight with the party's major financial backers.