Prime Minister Andy Burnham has reportedly withdrawn his support for a cap on political donations, following objections from trade unions that are significant financial backers of the Labour Party. Burnham had previously advocated for a £500,000 limit on donations during his campaign to return to Westminster in May, a stance taken amid controversy over substantial financial gifts received by the Reform Party from billionaire donor Christopher Harborne.
In an earlier communication, Burnham indicated his support for such a cap, stating in an email to Shaun Bowler, founder of the grassroots group WakeUpGB, that it "would guard against the perception of any one party being unduly influenced or swayed by one person or organisation." Bowler had expressed a desire to believe in Burnham's promises of "wholesale culture change" in Westminster and action against the influence of wealthy donors.
However, reports suggest Burnham has now ceased supporting amendments to the Elections Bill after lobbying from unions that provide millions of pounds to Labour. The GMB union, which has contributed over £2.4 million to various party entities since the beginning of 2025, argued that a cap would have "significant unintended consequences."
The GMB stated in a letter to Members of Parliament last month that trade unions already face extensive statutory regulation regarding political expenditure, more so than other membership organizations. The union highlighted specific legislation governing political funds, members' rights to opt out, and robust transparency and reporting requirements, distinguishing their affiliation arrangements from general political donations.
Transparency data indicated that in the three months prior to entering Downing Street, Burnham received donations exceeding £325,000. Among the financial backers listed were prominent Labour donor Lord Sainsbury, party figure Lord Blunkett, and former Greater Manchester night-time economy tsar Sacha Lord.
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. The opposition from unions, however, has focused on domestic donation limits.