The government has announced a new cross‑government taskforce to examine how best to reduce the influence of multimillion‑pound donors on UK politics, after growing pressure from within the Labour parliamentary party and campaigners for swift action.
Immediate action promised amid calls for a cap
Ministers told the Commons that the taskforce will work quickly to identify measures that can be put in place without producing “unintended consequences”. The intervention comes as dozens of Labour MPs urged that a cap on donations be introduced before the next general election.
Labour’s democracy minister, Florence Eshalomi, said the secretary of state and the prime minister were determined to tackle the problem of UK‑based mega‑donors and that the government was prepared to go further on big money in politics. She told MPs the government had already taken steps to restrict large donations from British-based donors overseas and would consider additional action.
“The secretary of state and the prime minister are determined to tackle the UK‑based issue of mega donors in UK politics,”
“a new cross‑government taskforce to work at pace to find a solution without unintended consequences”.
The promise was welcomed by MPs pressing for a firm timetable. Stella Creasy led a group of backbenchers who argued that limits on large donations were necessary to restore public trust in the political system and asked for a commitment that a cap would be enacted prior to the next election.
Legislative context and existing measures
The announcement was given alongside debate on a wider representation of the people bill. The primary aims of the bill include lowering the voting age to 16 and introducing limits on donations by Britons living abroad. Ministers said the bill would cap annual donations from UK citizens overseas at £100,000 and impose a temporary ban on cryptocurrency contributions until the Electoral Commission judges they are not a risk.
| Measure | Detail |
|---|---|
| Voting age | Lowered to 16 |
| Overseas donations | Cap of £100,000 per year for Britons abroad |
| Cryptocurrency donations | Ban until deemed low risk by the Electoral Commission |
Ministers indicated that any further measures emerging from the taskforce would be pursued with urgency. Florence Eshalomi said that once options were identified the government would aim to have them in force as soon as practicable.
Union concerns and backbench divisions
Trade unions have expressed reservations about a broad donations cap, arguing that limits could be used by a future right‑wing government to restrict funding to the labour movement. Ministers acknowledged those concerns in Parliament and said they wanted to find approaches that would not hinder legitimate union funding while still addressing the problem posed by very large private donations.
Backbench pressure for an early cap has been sustained. MPs such as Creasy argued it would help rebuild public confidence and reduce the perception that wealthy individuals can exert undue influence over policy. The government’s taskforce will need to reconcile those demands with legal, practical and political constraints.
- Taskforce established to examine UK‑based mega‑donors.
- Representation of the people bill includes lowering voting age to 16 and a £100,000 cap for Britons abroad.
- Cryptocurrency donations remain banned until the Electoral Commission rules them not a risk.
How quickly ministers can translate the taskforce’s findings into legislation remains unclear. The government has pledged speed; the parliamentary timetable and competing priorities will determine whether a firm cap can be enacted before the next election, as some Labour MPs are demanding.
