Labour MP Proposes £1 Million Cap on UK Political Donations

Labour MP Alex Sobel has proposed an amendment to the Representation of the People Bill that would cap donations from individual UK-based donors at £1 million. The bill returns to the House of Commons this month and is scheduled to complete its remaining stages before 20 July 2026.

There are currently no legal limits on the size of donations that UK residents can give to political parties or politicians.

Sobel’s amendment would exempt trade unions and other collective organisations from the cap and would allow the government to lower the limit after a transitional period ending in 2029. Andy Burnham, who is widely expected to replace Prime Minister Sir Keir Starmer on 20 July, has stated in emails that there should be a cap on political donations. ” Starmer has not supported such a cap.

UK parties reported £20.7 million in donations in the first quarter of 2026, according to the Electoral Commission. Reform UK received £9.2 million of that total, including a £9 million gift from Christopher Harborne in 2025 that remains the largest single donation by a living person to a UK party.

A separate Liberal Democrat amendment, signed by Labour MP Dr Simon Opher among others, proposes a £50,000 cap subject to review.

The government has already included in the bill a £100,000 annual limit on donations from British citizens living overseas and a ban on cryptocurrency contributions. Reform UK has criticised the overseas cap and crypto ban, accusing Labour of restricting legal funding for its main rival. Harborne told the Telegraph in April that he believed he could challenge the overseas limit in court.