In the first three months of 2026, UK political parties accepted £20.7m in donations, with Reform UK alone receiving £9.2m, much of it from two wealthy backers. Now, a group of Labour MPs is pushing to cap political donations at £1m per individual donor, a move they believe will be backed by the man expected to become the next prime minister, Andy Burnham.
The proposal comes in the form of an amendment to the Representation of the People Bill, which is currently going through the House of Commons. Currently, there are no restrictions on how much money UK-based donors can give to political parties or individual politicians. The amendment, tabled by Labour MP Alex Sobel, would introduce a £1m cap per individual donor, with the government able to reduce that cap after a transitional period ending in 2029. The cap would only apply to individuals, not collective organisations like trade unions, which are traditionally Labour's biggest donors.
“Explaining the proposed £1m cap on UK political donations and the debate around it.”
Andy Burnham, who is widely expected to replace Sir Keir Starmer as prime minister on 20 July, has indicated his support for a cap. In an email exchange in May 2026, when Burnham was campaigning in the Makerfield by-election, he wrote that a cap "would guard against the perception of any one party being unduly influenced or swayed by one person or organisation." He suggested his "gut feeling" was that the cap should be around £500,000, though he said the level would need wider review.
The issue of political donation caps is not new. Campaign groups such as the Electoral Reform Society have long argued that the lack of a cap "means that a handful of very wealthy individuals can continue to assert undue influence over our politics." The current system allows for large donations, such as the £9m given to Reform UK by Christopher Harborne in 2025—the biggest single donation to a UK political party by a living person. The source of party funding has been a recurring debate in British politics, with concerns about the influence of wealthy donors and the perception of corruption.
For UK readers, this matters because it directly affects how political parties are funded and whose interests they might serve. Without a cap, a small number of extremely wealthy individuals can give sums that dwarf what ordinary members can afford, potentially giving them outsized influence over party policy or candidate selection. A cap would aim to level the playing field, but critics argue it could restrict free speech or disadvantage parties that rely on a few large donors.
The timing of Sobel's amendment is significant. The Representation of the People Bill is due to finish its remaining stages in the Commons before Burnham is expected to take over as prime minister on 20 July. The current prime minister, Sir Keir Starmer, has not supported a cap. The Starmer government could pull the bill and wait for Burnham to take office, or Burnham could try to introduce a cap once the bill progresses to the House of Lords.
Q: Who is proposing the £1m cap on political donations? Labour MP Alex Sobel has tabled an amendment to the Representation of the People Bill that would cap individual donations at £1m. He believes dozens of Labour MPs and the likely next prime minister, Andy Burnham, will back it.
Q: Why is a cap on donations being considered now? There are currently no limits on how much UK-based donors can give to parties or politicians. Recent large donations to Reform UK, including £9m from Christopher Harborne in 2025, have reignited concerns about the influence of wealthy individuals. The Electoral Reform Society argues that without a cap, a few wealthy people can have undue sway over politics.
Q: What would happen if the cap is introduced? The £1m cap would apply to individual donors, not organisations like trade unions. After a transitional period ending in 2029, the government could reduce the cap further. The amendment would need to pass through Parliament, and Andy Burnham, if he becomes prime minister, could support it once the bill reaches the House of Lords.
What happens next depends on the parliamentary timetable. The Representation of the People Bill is currently in the Commons, and the Starmer government must decide whether to push it through before Burnham takes over on 20 July or wait. Burnham has expressed support for a cap in principle, though his suggested level of £500,000 is lower than Sobel's £1m. If Burnham becomes prime minister, he could use his position to advance the cap, but the details—including the exact figure and whether it covers organisations—would likely be subject to further debate. Separately, Burnham will also have the chance to appoint a new Labour Party general secretary, a role crucial to fundraising and electioneering, after the current general secretary, Hollie Ridley, announced she is stepping down.