Prime Minister Andy Burnham has reportedly reversed his stance on a proposed cap for political donations, a move that follows lobbying from labor unions that are significant financial backers of the Labour Party. Burnham had previously expressed support for a £500,000 limit on political donations, particularly during his campaign to return to Westminster in May. At that time, he stated in an email that such a cap "would guard against the perception of any one party being unduly influenced or swayed by one person or organisation." This position was articulated amidst a controversy surrounding a substantial donation to the Reform party from billionaire donor Christopher Harborne.
However, according to reports, Burnham has since withdrawn his support for amending the Elections Bill to include this cap. This decision appears to be influenced by concerns raised by unions, including the GMB, which has contributed over £2.4 million to various Labour Party entities since the beginning of 2025. The GMB had previously communicated to Members of Parliament that a cap would have "significant unintended consequences."
Transparency data from the period before Burnham entered Downing Street, between May and July, indicated that he received donations totaling more than £325,000. Among those who provided financial backing were prominent Labour donor Lord Sainsbury, party figure Lord Blunkett, and Sacha Lord, former Greater Manchester night-time economy tsar.
Shaun Bowler, founder of the grassroots WakeUpGB group, expressed disappointment with the reported shift. He stated, "Andy Burnham promised me a proper cap on political donations and a 'wholesale culture change' in Westminster. If his government now refuses to back a donations cap, then he has broken the promise he made to me – and to voters." Bowler emphasized that large political donations can create influence and that the Prime Minister has an opportunity to rebuild trust through the Representation of the People Act.
The government has already implemented a £100,000 annual cap on donations from overseas, effective from March 25, which will also apply for the first year of an individual's residency in the UK. Unions, however, have voiced opposition to a domestic cap, arguing that trade unions are already subject to extensive statutory regulation and transparency requirements concerning their political expenditure, which differ fundamentally from political donations.