UK political donation rules explained amid calls for cap
7 reported1 unconfirmed
A single-source report from The Guardian outlines the current rules on political donations and gifts in the UK, as well as growing calls for a cap on donations. The article explains that donations from individuals, companies, and organisations make up the biggest element of political funding, with parties also receiving money from membership fees, conference events, and state funding known as "Short money" for opposition parties. Donations above £500 for parties and above £50 for candidates can be made by voters on the electoral register, UK-registered companies, trade unions, and unincorporated associations. The House of Commons library states that political funding is underpinned by the principle of "voluntarism," which protects citizens' freedom to give money as they choose. Critics argue this can lead to reliance on a small number of wealthy donors, generating suspicion of undue influence. The article notes recent mega-donations, including £20m to the Conservatives, £15m to Reform UK from Christopher Harborne, and £4m from Ben Delo, prompting some MPs to push for a cap. The government has resisted a cap, with No 10 stating people should be free to give what they want, and the GMB union opposing the idea.
What’s reported
Donations above £500 for parties and above £50 for candidates can be made by voters on the electoral register, UK-registered companies, trade unions, and unincorporated associations.
Donors and parties must register names, donation size, and date for a publicly available register; donations greater than £11,180 in one year must be reported.
MPs must declare gifts or benefits above £300 in value if received in their capacity as a parliamentarian or for political purpose; gifts worth more than £500 must be from a permissible source.
The government recently capped donations from overseas investors at £100,000 in a year.
Research by Transparency International shows the proportion of donations from individuals and companies giving £1m or more jumped from 1% in 2015 to 35% by 2024.
Labour MP Stella Creasy is pushing for a £100,000 cap for all donors; Labour MP Alex Sobel has proposed a cap set at £1m.
The GMB union opposes the idea of a cap, saying it could lead to a backlash against unions funding parties.
Open questions
The article does not specify whether the standards commissioner has reached a decision on the Nigel Farage gift case.
Key figures
Nigel Farage, Reform UK leader
Christopher Harborne, Thailand-based crypto billionaire
Ben Delo, crypto entrepreneur
Stella Creasy, Labour MP
Alex Sobel, Labour MP
GMB union (as an organisation)
Sources: The Guardian
