Corruption Files
The Houses of Parliament in London, where the Representation of the People Bill has been delayed amid debate over political donations and mega-donor influence.
Government

Westminster Delays Political Donations Bill as MPs Push for Tougher Funding Rules

By

The UK government has postponed key Westminster legislation on political donations, giving MPs time to consider stricter limits on mega-donors and stronger transparency rules amid growing concerns over money's influence in British politics. The Representation of the People Bill — one of Keir Starmer's final acts as prime minister — was due to be debated on July 14 but was paused by incoming Prime Minister Andy Burnham to allow his new administration to shape what is ultimately passed into law.

The delay has intensified debate over the role of big money in British politics, particularly following reporting into Nigel Farage's finances, including the £5 million donation he received from Thailand-based cryptocurrency billionaire Christopher Harborne — a gift that Farage insists was 'personal', not political. Harborne gave a single donation of £9 million to Reform UK last year, the biggest single donation to a UK political party by a living person, and £12 million in total to Reform in 2025, with a further £3 million in January.

Proposed Reforms and the £100,000 Cap

Among the bill's proposed reforms is an annual £100,000 limit on donations from British citizens living overseas, backdated to 25 March. The government also plans to introduce a requirement that overseas voters moving to the UK must wait a year before they can give more than £100,000 in political donations. Ministers have also announced tougher checks on company donations, assessing them against post-tax profits over the previous five years rather than revenue alone, to ensure only legitimate UK-linked businesses can donate.

The changes could hit two of Reform UK's biggest backers: Christopher Harborne and Ben Delo, another crypto billionaire who donated £4 million to Reform between January and March. Delo has said he will move back to Britain from Hong Kong so he can contribute more to Reform. Under the government's planned changes, both Harborne and Delo would be covered for a year by the £100,000 cap once they return.

MPs Push for Stronger Action

A number of Labour MPs want the bill to go further. Labour backbenchers have sought to cap political donations at either £1 million or £100,000 when the bill returns to the Commons. Stella Creasy MP has tabled an amendment to the bill which would cap donations at £100,000. However, one of Britain's biggest trade unions has told Labour MPs not to vote for a cap on political donations, warning it could endanger union funding for the party.

Rushanara Ali, one of the MPs who helped draft the bill, has urged Burnham to go further, calling the original version 'timid and limited'. The government has also proposed a ban on any political donations made through cryptoassets on or after March 2026, requiring those making donations over a set threshold to submit a declaration.

Delay and Uncertainty

The Elections Bill, meant to finally clean up political funding in the UK, was supposed to pass this week. Instead, it has been pushed to September because Andy Burnham wants to rewrite it. The question now is whether he will strengthen it or water it down. Critics warn that the delay gives overseas billionaires two more months to buy influence through shell companies, paper members' clubs, and opaque corporate structures.

Communities Secretary Steve Reed said: 'British democracy is not for sale. These tough new rules will shut down dodgy funding, stop foreign money influencing our elections and keep our democracy strong. By holding overseas donors to tougher standards and requiring candidates to prove where their funding comes from, we are taking world-leading action to protect the integrity of our elections.'

The bill, which also includes the extension of the franchise to 16 and 17-year-olds and new rules on voter registration, is currently scheduled to return to the House of Commons for further consideration. For the families and campaigners who have fought for decades against the influence of big money in politics, the outcome remains uncertain — but the delay has given them renewed hope that tougher rules may finally be within reach.

Corruption Files — Investigative Journalism
Margaret Holloway — author photo
About Author

Margaret spent fourteen years covering the Hill before she stopped believing in coincidences. A former congressional staffer turned investigative journalist, she has sat in more closed-door briefings than she cares to count and developed a particular eye for what gets left out of the official record. Her work focuses on the distance between what legislators say on the floor and what they agree to in the back hallway.

SubstackMedium

Related posts