Labour MPs are scrambling to impose a £1m cap on political donations before Andy Burnham takes over as prime minister on 20 July — a reform the leader-in-waiting has privately backed but which Sir Keir Starmer has resisted.
One Labour MP, Alex Sobel, is putting forward an amendment to the Representation of the People Bill that would cap individual UK-based donations at £1m. Collective organisations such as trade unions — traditionally Labour’s biggest donors — would be exempt. Sobel said the government could reduce the cap after a transitional period ending in 2029.
“Labour MPs propose £1m donation cap; Andy Burnham backs cap but Starmer resists as leadership change looms.”
Labour MPs are confident the cap will be backed by dozens of MPs including Burnham, who is widely expected to replace Starmer later this month. In an email exchange in May, when Burnham was campaigning in the Makerfield by-election, he told Shaun Bowler of the grassroots campaign WakeUpGB that “there should be a cap on political donations”. He wrote that a cap “would guard against the perception of any one party being unduly influenced or swayed by one person or organisation”. As to the level, he said: “My gut feeling would suggest somewhere in the region of £500k.”
The bill could be pulled by the Starmer government and left for Burnham, or if Burnham becomes prime minister he could try to bring in a cap once the bill has reached the House of Lords. UK political parties accepted £20.7m in donations in the first three months of 2026, according to the Electoral Commission. Reform UK received the most from donors in that period, £9.2m, much of it from two wealthy backers, Christopher Harborne and Ben Delo. Last year, Harborne donated £9m to Reform UK — the biggest single donation to a UK political party by a living person. The Electoral Reform Society said the lack of a cap “means that a handful of very wealthy individuals can continue to assert undue influence over our politics”.
As Burnham prepares to stamp his mark on the party, the number of women in his cabinet has become “a central issue” for female Labour MPs, said former deputy leader Harriet Harman.
Meanwhile, the race to replace Labour general secretary Hollie Ridley is intensifying. Ridley, a Starmer ally, told staff she is stepping down to allow a replacement “to work alongside a new leader once they are elected”. Candidates being floated include Joe Fortune, general secretary of the Co-operative Party; Christina McAnea, former Unison leader; Emily Lehal, former chief operating officer; Sarah Reynolds, a former No 10 liaison; and Jack Lavelle, key organiser of Burnham’s Makerfield campaign. The National Executive Committee will choose a successor, with a ratifying vote at annual conference in September. Burnham — who would be the first Labour and Co-op MP to serve as leader and prime minister — could use the appointment to cement his political imprint.