The UK government is establishing a new cross-government task force to address the issue of significant donations to political parties, often referred to as 'mega-donors,' according to a statement from Communities Minister Ellie Eshalomi.
This move comes amid ongoing debate and pressure from some Members of Parliament (MPs) to introduce caps on donations from UK-based individuals and companies. Currently, there are no restrictions on the amount of money UK-based donors can contribute to political parties.
During a parliamentary debate, Labour MP Stella Creasy highlighted the surge in donations from individuals and companies giving £1 million or more in the past decade, naming several political parties as recipients. She cited British billionaire Christopher Harborne, a Thailand-based businessman and one of Reform UK's largest financial backers, who made a single donation of £9 million to the party last year, reportedly the largest single donation by a living person to a UK political party.
Creasy had proposed amendments to a bill that would have imposed an immediate £500,000 cap on donations from UK-based donors, decreasing to £100,000 in the second calendar year, with ministers able to set a permanent cap. This amendment, supported by over 60 MPs, was not brought to a vote.
"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," Creasy stated, emphasizing the need to protect the integrity of the next general election. Her proposals would have exempted trade unions, which she described as providing "clean money" and being "already well regulated."
Critics, including MP for East Wiltshire, argued that the bill's proposals were a "flagrantly partisan attempt to kneecap Reform UK" and that the focus should be on restoring trust in politicians and parties.
Responding for the government, Eshalomi stated that the bill already includes significant measures to strengthen the political finance regime while allowing legitimate donors to fund campaigns. She reassured MPs that the prime minister is committed to tackling the issue of UK-based mega-donors and announced the formation of the new task force, which will work to find solutions "without unintended consequences" and aim to implement them as soon as possible.
In March, the government announced plans to ban cryptocurrency donations to political parties and to cap donations from British citizens living abroad at £100,000 annually. Further measures included preventing overseas voters moving to the UK from donating more than £100,000 in their first year and implementing tougher checks on company donations to curb foreign influence in elections. The bill also includes changes to the voting system, such as extending voting rights to 16- and 17-year-olds. The bill was approved at its third reading and will proceed to the House of Lords for further scrutiny.