Lead

The GMB union has written to its affiliated Labour MPs urging them not to vote for amendments to the representation of the people bill that would cap political donations at either £100,000 or £1m, warning that such a cap could endanger union funding for the party. The move comes as ministers prepare for a battle with backbenchers over proposed changes to the bill, including the donations cap and an outright ban on cryptocurrency donations.

Coverage Comparison

The Guardian reports that the GMB's letter, sent to more than 80 MPs who are members of the union, argues that the amendment risks significant unintended consequences. The union states that trade unions are already subject to statutory regulation over political expenditure that no other membership organisations face, with members having clear rights to opt out and unions subject to extensive transparency and reporting requirements. The letter also contends that affiliation arrangements are fundamentally different from political donations and should not be treated as the same.

In a separate development, Labour MPs are set to rebel next week over the government's reforms to political funding, pushing for tougher measures including a ban on cryptocurrency donations and much lower spending limits. MPs on the all-party, anti-corruption group are canvassing support for four amendments to the bill, including a permanent ban on donations made in digital currencies instead of the government's current moratorium, a proposal that is finding widespread support among Labour MPs after controversies over Nigel Farage's funding.

Key Claims

  • The GMB union has written to its affiliated MPs urging them not to vote for amendments that would cap donations at either £100,000 or £1m.
  • Ministers are preparing for a battle with backbenchers over some of the proposed amendments, including the donations cap and an outright ban on cryptocurrency donations.
  • Research by Transparency International shows the proportion of political donations coming from individuals and companies giving £1m or more has jumped from 1% in 2015 to 35% in 2024.
  • Andy Burnham told transparency campaigners he backed the idea of a donations cap, saying it would guard against the perception of any one party being unduly influenced or swayed by one person or organisation.
  • Reform UK would have held just 15% of the donations it received last year if a proposed £100,000 cap on political donations had been in force, according to analysis by Friends of the Earth using Electoral Commission data.
  • Two billionaire donors – Christopher Harborne and Ben Delo – accounted for 71% of Reform's registered donation income over the last year.
  • Labour MPs are to rebel next week over the government's reforms to political funding, pushing ministers to introduce tougher measures including a ban on cryptocurrency donations and much lower spending limits.
  • Liam Byrne, the Labour chair of the business select committee, is calling for a cryptocurrency donation ban.
The analysis by Friends of the Earth, shared with the Guardian, highlights the party's reliance on a handful of wealthy backers. It found that Reform UK would have raised just £4.1m between April 2025 and March 2026, instead of the £26.7m it actually received, if a £100,000 annual donation limit applied. The analysis assumed union affiliation payments would be exempt from the cap, in line with recommendations made by the Phillips review into party funding.

Reform's registered average donation last year was £137,496, almost six times higher than Labour's £23,406 or the Conservatives' £23,173 and 30 times higher than the Liberal Democrats' average donation of £4,496. By comparison, Labour would have retained about three-quarters of its registered donations under the cap, raising £8.1m rather than £10.8m. The Tories would have kept just over half of their donations, taking £8.3m instead of £15.5m. The Lib Dems would have held on to about 90% of theirs, taking £5.2m instead of £5.8m, and the Greens would have been unaffected with their £468k in donations.

Liam Byrne, who is calling for a cryptocurrency donation ban, said: "With each passing day, we learn new revelations about the extraordinary lengths to which Reform UK politicians will seemingly go in order to avoid proper oversight of their finances. Amendments to the representation of the people bill which my colleagues and I have tabled are vital safeguards against the wider threat that's seen £200m come flooding in to build a whole media political complex behind populists in Britain."

He added: "We simply cannot afford to let our crumbling defences be undermined any further. I would urge any parliamentarian who genuinely cares about the integrity of UK democracy to back these amendments." Byrne's amendment had at least 20 signatures by midday on Thursday.

Anneliese Dodds, the former Labour cabinet minister, has tabled an amendment calling for campaign spending limits to be reduced by nearly a third from £34m to £24.4m. She said: "We now have an arms race in funding political campaigns. The public want to see limits set at a more reasonable level."