The Labour government has signalled it will move to curb the influence of very large political donations, a minister told the Commons as MPs pressed for immediate limits on contributions from UK-based individuals and companies.
Florence Eshalomi said a new unit would be "working at pace to find a solution" after calls for an urgent cap on donations. Ministers pointed to an existing commitment to introduce an annual cap of £100,000 on donations from British citizens living overseas, but were urged to go further by restricting what donors in the UK may give.
Commons pressure for swift change
Labour backbenchers and opposition MPs used debate on the Representation of the People Bill to press ministers for tighter limits. Several MPs argued that the growing scale of individual donations gives wealthy donors outsized influence over politics and public policy.
One cross-party initiative, tabled as an amendment but not moved to a vote, would have introduced an immediate cap of £500,000 per donor in the first year, falling to £100,000 in the second. More than 60 MPs added their names to that proposal.
"Obscene wealth is increasingly dictating who is heard, whether we like it or not, what issues are being prioritised and whose interests shape policy decisions,"
The remark was made in the Commons by Stella Creasy, who argued that large donations — including single gifts in the millions — had surged and warranted an urgent response to protect the next general election.
Government position and political pushback
Downing Street ministers have already committed to the overseas cap, but acknowledged the issue of UK-based mega-donors remains unresolved. A Labour minister told MPs that officials would form a team to examine options and report back swiftly.
Not all parties welcomed the proposals. Reform UK warned that measures in the bill were partisan and risked harming its ability to fundraise. Danny Kruger of Reform described the legislation as a "flagrantly partisan attempt to kneecap" his party, highlighting the political sensitivity of any new rules on donations.
Illustrating the scale
Campaigners and some MPs pointed to very large single donations as evidence of the problem. In one cited example, a donor gave £9 million in a single gift last year — described in Commons debate as the biggest single donation to a UK party by a living person.
| Measure | Detail |
|---|---|
| Committed cap (overseas) | £100,000 per year on donations from British citizens overseas |
| Proposed amendment | Immediate £500,000 cap, dropping to £100,000 in year two (not moved to vote) |
| Recent large single donation cited | £9,000,000 to one party in a single gift |
Next steps and wider implications
Ministers say officials will work through options for a possible cap on UK-based donors, but have not set a timetable for firm proposals or legislation beyond the measures already pledged. The issue raises complex legal and practical questions about enforcement, exemptions, and treatment of trade unions — an exemption some MPs suggested, arguing unions are already regulated and represent ‘clean’ money.
- Labour has promised a £100,000 annual limit on donations from British citizens abroad.
- MPs pressed for an immediate cap on UK donors, proposing £500,000 falling to £100,000.
- Reform UK cautioned the bill could be used to disadvantage particular parties, underscoring political controversy.
The Commons exchanges underline the central political contest over party funding. Ministers face the task of designing rules that will be seen as fair and enforceable while managing criticism from parties that depend on large donations. How quickly they produce a firm proposal will be a test of the government's stated determination to act.
