Key facts
- Trade unions are preparing to back reforms to political finance rules, including donation caps.
- Two cryptocurrency billionaires, Christopher Harborne and Ben Delo, donated £72 million to Nigel Farage's Reform UK.
- The Trades Union Congress is expected to issue a joint statement on updated political financing positions.
- Unions may back a cap for wealthy U.K.-based individuals and trade unions, with different calculation methods for each.
- The Labour government has tasked the Electoral Commission with reviewing political campaigning spending limits.
- Donations from overseas residents and in the form of cryptocurrency are opposed by the TUC.
British trade unions are preparing to back significant reforms to political finance rules, including the introduction of donation caps, following a record £72 million contribution to Nigel Farage's Reform UK party from two cryptocurrency billionaires. This shift comes after unions had previously lobbied against such caps, fearing they could limit their own donations to the governing Labour Party.
Christopher Harborne and Ben Delo each donated £36 million to Reform UK over the weekend, prompting renewed debate about Prime Minister Andy Burnham's stance on domestic donation limits. The Trades Union Congress (TUC), currently holding its annual conference, is expected to release a joint statement on its updated position, though agreement among unions is still pending. The proposed reforms may involve different cap calculations for wealthy individuals and trade unions.
Separately, unions are discussing whether to support a review of how political parties spend their money, a move that would align with the Labour government's initiative to task the Electoral Commission with reviewing campaign spending limits. The issue has become a focal point at the TUC conference, with some unions advocating for stricter action against large donations while others, particularly those with close ties to Labour, worry about their own funding being affected.
Reform UK's Deputy Leader, Richard Tice, has accused Labour of hypocrisy over the proposed rule changes. Union leaders are emphasizing the distinction between individual union member contributions and large billionaire donations. TUC General Secretary Paul Nowak stated that there is no similarity between "care workers chipping in a few quid a year through their union, and a party bought and paid for by billionaires."
Meanwhile, questions remain about the legality of the £72 million donations, as Harborne and Delo might be subject to an existing £100,000 cap on overseas donations, with a crucial cut-off date of March 25. Farage indicated that the donations were compliant with current law but did not confirm if the donors met the residency requirements by the cut-off date. The proposed legislation is seen by Reform UK as an attempt to "rig the system" against them.