Key facts
- The GMB union has warned Labour MPs against supporting amendments to cap political donations.
- The union argues that donation caps could negatively impact its ability to fund the Labour party.
- Proposed amendments seek to limit individual donations to £100,000 or £1m.
- The debate is intensified by recent controversies surrounding funding for Reform UK.
- Ministers have proposed a cap on overseas donations but not for domestic ones.
Britain's GMB union has urged Labour MPs to reject proposed amendments to the Representation of the People Bill that would cap political donations, warning that such measures could jeopardize the party's funding. The union argues that trade unions face unique regulations and that affiliation arrangements differ from standard political donations.
The proposed caps, set at either £100,000 or £1 million, are part of broader efforts to limit the influence of large sums of money in politics, a debate intensified by recent controversies surrounding the funding of Reform UK. Sources indicate that Labour whips are actively engaging MPs, influenced by the GMB's stance, leading some to withdraw support for the caps.
Research from Transparency International highlights a dramatic increase in large donations, with the proportion from individuals and companies giving £1 million or more rising from 1% in 2015 to 35% in 2024. This trend has been amplified by revelations about donations to Nigel Farage's party from figures like crypto billionaire Christopher Harborne and convicted fraudster George Cottrell, with police now investigating significant sums given to Reform UK.
While some Labour MPs, including Andy Burnham in the past, have supported donation caps to prevent undue influence, the government's proposed amendments focus only on capping donations from British individuals living abroad. Stella Creasy and Alex Sobel have tabled amendments for a £100,000 and £1m cap respectively, which are expected to be debated in the House of Commons.