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 just two wealthy backers. Now, Labour MPs are pushing to cap how much money any individual donor can give to a party, a move that could fundamentally change how British politics is funded.
At its simplest, the proposed cap would limit UK-based individuals to donating no more than £1m per year to a political party. Currently, there is no upper limit on donations from UK-based individuals or organisations, meaning a single donor can give tens of millions – as Christopher Harborne did when he donated £9m to Reform UK in 2025, the largest single donation by a living person. The amendment to the Representation of the People Bill, put forward by Labour MP Alex Sobel, would apply only to individual donors, not collective organisations like trade unions, which have traditionally been Labour's biggest funders. After a transitional period ending in 2029, the government could reduce the cap further.
“Why UK political donations might soon be capped at £1m and what it means for democracy.”
The lack of a donation limit has long been criticised by 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." Labour's leader-in-waiting, Andy Burnham, has expressed support for a cap, writing in a May 2026 email that it "would guard against the perception of any one party being unduly influenced or swayed by one person or organisation." Burnham suggested his "gut feeling" was a limit of around £500,000, though the formal proposal from Sobel stands at £1m. The current prime minister, Sir Keir Starmer, has not backed the cap, complicating the bill's path through Parliament.
For UK readers, the implications are direct. If the cap becomes law, it would curb the ability of a few ultra-wealthy individuals to bankroll parties, potentially levelling the playing field. Parties that rely heavily on large donations, like Reform UK, would need to diversify their funding. However, the cap exempts trade unions and other collective organisations, which could maintain Labour's existing funding streams. Critics argue this may not go far enough, as unions themselves can have significant influence.
Q: What is the current limit on political donations in the UK? There is no cap on how much money UK-based individuals or organisations can donate to a political party. The only restrictions are on foreign donations and a requirement to declare donations over £500.
Q: Who would be affected by a £1m cap? It would apply to individual UK donors. Organisations like trade unions, which are collective bodies, would not be affected by Sobel's amendment. Wealthy individuals who give sums exceeding £1m, such as Reform UK backers Christopher Harborne and Ben Delo, would have to reduce their contributions.
Q: How likely is the cap to become law? The amendment is attached to the Representation of the People Bill, which is back in Parliament in July 2026. Sir Keir Starmer does not support the cap, but Andy Burnham, expected to become prime minister on 20 July, has indicated support. If Burnham takes over, he could push the cap through when the bill reaches the House of Lords.
What happens next depends on the timing. Starmer's government could pull the bill before Burnham takes office, or Burnham could introduce the cap after becoming PM. The bill must finish its Commons stages before 20 July, after which Burnham would have the option to amend it in the Lords. The Labour Party's National Executive Committee is also selecting a new general secretary, a role that will influence the party's future fundraising strategy. For now, the debate over Britain's donation laws – and the influence of big money in politics – is far from over.