At the moment, a single donor could give £10m or even £100m to a UK political party without breaking any law. That might sound extreme, but it is already happening: last year, one individual donated £9m to Reform UK—the biggest single donation from a living person to any British party. Now Labour MPs are proposing to cap donations at £1m per person, a move they believe will be backed by Andy Burnham, the man widely expected to become the next prime minister later this month.
The proposal, tabled by Labour MP Alex Sobel as an amendment to the Representation of the People Bill, would limit individual UK-based donors to giving no more than £1m per year to political parties. There are currently no restrictions on the size of donations from UK-based donors (though foreign donations are banned). The cap would apply only to individuals, not to organisations such as trade unions, which are Labour's traditional big donors. Sobel's amendment also includes a transitional period ending in 2029, after which the government could lower the cap further.
“Why the UK lacks a cap on political donations and what a proposed £1m limit would mean.”
The lack of a cap has long been a concern for campaign groups. The Electoral Reform Society says it "means that a handful of very wealthy individuals can continue to assert undue influence over our politics." In the first three months of 2026 alone, UK political parties reported accepting £20.7m in donations, according to the Electoral Commission. Reform UK received the most from donors in that period, £9.2m, with much of it coming from two wealthy backers, Christopher Harborne and Ben Delo.
Andy Burnham, who is expected to replace Sir Keir Starmer as prime minister on 20 July, has indicated support for a cap. In an email exchange seen by the BBC, 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 a figure "somewhere in the region of £500k"—half the level Sobel has proposed. Current Prime Minister Sir Keir Starmer has not backed a cap. The bill that could introduce it is due to finish its remaining Commons stages before Burnham takes over. The Starmer government could pull the bill and wait for the new leader, or Burnham could try to bring in a cap once the bill reaches the House of Lords.
Why it matters for UK readers
For British voters, this is about who holds real power in politics. Without limits, a handful of super-rich individuals can bankroll parties and potentially sway policies or access. The UK is unusual among Western democracies in having no cap on donations; the United States, Canada, and most European countries impose limits. If a £1m cap is introduced, it would affect all parties—but especially those relying on a few big donors. For Labour, the exemption for trade unions means the party's main funding source would be untouched. For Reform UK, which has been fuelled by large individual donations, the impact could be significant.
Key questions answered
Q: How much can someone currently donate to a UK political party? There is no upper limit on donations from UK-based individuals, companies, or trade unions, though donations from foreign entities are banned. The only requirement is that donations over £500 must be reported to the Electoral Commission.
Q: Why is a donations cap being proposed now? Labour MPs, including likely next prime minister Andy Burnham, are pushing for a cap to reduce the perception of undue influence by wealthy donors. The proposal comes as the Representation of the People Bill returns to Parliament, offering a legislative vehicle for the change.
Q: Would a £1m cap affect all donations equally? No. The cap proposed by Alex Sobel applies only to individual donors. Organisations such as trade unions, which are major Labour funders, would not be included. Burnham has suggested a lower cap of around £500,000, but any final figure would be subject to a wider review.
What happens next The Representation of the People Bill must complete its remaining stages in the House of Commons before 20 July, when Andy Burnham is expected to become prime minister. The Starmer government could choose to pause the bill and let Burnham decide. If Burnham backs a cap, it could be added when the bill reaches the House of Lords. Meanwhile, the Labour Party is also choosing a new general secretary, a role that oversees fundraising and electioneering, which could affect how any new rules are implemented.
