Prime Minister Andy Burnham is facing accusations of backtracking on his commitment to cap political donations, a position he publicly supported during his campaign to return to Westminster. The shift in stance is reportedly influenced by lobbying from trade unions, which are significant financial contributors to the Labour party.
During his election campaign in May, Burnham expressed support for a £500,000 limit on cash gifts to political parties. In an email to Shaun Bowler, founder of WakeUpGB, an organization advocating for stricter campaign finance regulations, Burnham stated that such a cap "would guard against the perception of any one party being unduly influenced or swayed by one person or organisation." He suggested a figure around £500,000, with the possibility of it being reduced over time.
However, the Prime Minister has now reportedly distanced himself from supporting efforts by Labour backbenchers to introduce a similar cap through the Representation of the People Bill. MPs Stella Creasy and Alex Sobel had proposed amendments to the bill, with Creasy initially suggesting a £100,000 limit, later revised to £500,000, and Sobel proposing £1 million. Both proposed amendments include carve-outs for trade union affiliation fees.
The GMB union, which has contributed over £2.4 million to various Labour party entities since the beginning of 2025, has argued that the proposed amendments would have "significant unintended consequences." The union contends that trade unions are already subject to extensive statutory regulation regarding political expenditure, including transparency and reporting requirements, and that affiliation arrangements are fundamentally different from political donations.
Bowler, in a letter to Burnham, accused the Prime Minister of breaking a promise made during the election campaign and suggested that union pressure was the cause. "What is the actual difference between unions and any other person or organisation making large donations? They all give money to gain influence," Bowler wrote, characterizing the situation as "totally undemocratic."
A Labour source stated that the bill's primary focus is on delivering manifesto commitments, including Votes at 16 and strengthening political donation rules to prevent foreign interference, indicating these are the government's priorities.
The controversy follows reports 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 and Lord Blunkett.
Separately, the government has announced a £100,000 annual cap on donations from overseas, backdated to March 25, which will also apply for the first year of an individual's residency in the UK. This measure aims to address concerns raised by a substantial donation to the Reform party from billionaire Christopher Harborne.