Prime Minister Andy Burnham has been accused of backtracking on his support for a cap on political donations, a move critics suggest is aimed at appeasing Labour's union paymasters. Burnham had previously backed a £500,000 limit on cash gifts to political parties during his campaign to return to Westminster in May.
At the time, Burnham stated in an email to Shaun Bowler, founder of WakeUpGB, that such a cap "would guard against the perception of any one party being unduly influenced or swayed by one person or organisation." This statement came amid a controversy surrounding a £5 million donation to Reform by billionaire Christopher Harborne.
However, the Prime Minister has reportedly stepped back from lending government support to efforts by Labour backbenchers to introduce a similar cap. This shift is understood to have followed lobbying from trade unions, which contribute millions of pounds annually to the Labour party. MPs, including Stella Creasy and Alex Sobel, had planned to amend the Representation of the People Bill upon the Commons' return, but the Prime Minister is believed to feel the issue requires further deliberation.
The GMB union, which has provided over £2.4 million to various Labour party entities since the beginning of 2025, has indicated that the proposed amendments could have "significant unintended consequences," despite provisions for trade union affiliation fees. Shaun Bowler, in a letter to Burnham, accused the Prime Minister of yielding to union pressure, questioning the distinction between union donations and those from other organizations seeking influence. "It is totally undemocratic, and it's one of the main reasons Parliament has lost our trust. What example are you setting now?" Bowler wrote, asking if commitment could be abandoned upon request from wealthy entities.
The government has already implemented a £100,000 annual cap on donations from overseas entities, effective from March 25, which will also apply to the first year of an individual's residency in the UK. A Labour source stated that the bill's primary aims are to fulfill manifesto commitments on Votes at 16 and to strengthen political donation rules against foreign interference, asserting these are the government's priorities.
In his May correspondence with Bowler, Burnham had expressed support for a donation cap, elaborating that a figure around £500,000 seemed appropriate, though he suggested this would require broader review and ideally be reduced over time. He also indicated a preference for an initial cap higher than WakeUpGB's £1,000 proposal. Amendments tabled by Creasy and Sobel initially proposed limits of £100,000 and £1 million, respectively, both including carve-outs for unions.
The GMB, in a letter to MPs last month, argued that trade unions face unique statutory regulations regarding political expenditure. The union stated that political funds are governed by legislation, members have opt-out rights, and unions are subject to extensive transparency and reporting requirements, asserting that affiliation arrangements differ fundamentally from political donations. Transparency data revealed that Burnham received over £325,000 in donations in the three months prior to entering Downing Street, with contributions from figures such as Lord Sainsbury, Lord Blunkett, and Sacha Lord.