Labour MPs are preparing to rebel next week against the government's proposed reforms to political funding, demanding tougher measures including a complete ban on cryptocurrency donations and significantly reduced spending limits. The rebellion, led by members of the all-party anti-corruption group, targets the representation of the people bill currently before Parliament.
Four Amendments to Tighten Rules
The MPs are canvassing support for four amendments that would substantially strengthen the government's plans. The first, proposed by Liam Byrne, Labour chair of the business select committee, calls for a permanent ban on donations made in digital currencies, replacing the current government moratorium. Byrne's amendment had secured at least 20 signatures by midday on Thursday.
Byrne stated: "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. 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."
Spending Limits and New Party Caps
Anneliese Dodds, former Labour cabinet minister, has tabled an amendment to reduce campaign spending limits by nearly a third, from £34m to £24.4m. She commented: "We now have an arms race in funding political campaigns. The public want to see limits set at a more reasonable level."
Another amendment from Yuan Yang, an ally of the incoming prime minister, proposes limits on the amount of money a party can hold when it is first established. This follows revelations that Rupert Lowe's far-right party Restore Britain started with £2.5m in the bank without declaring its source. A fourth amendment from Mark Sewards would introduce a new check on donations to assess the risk of foreign interference in British democracy.
Controversy Over Reform UK Funding
The push for tougher rules comes amid mounting controversy over funding to Nigel Farage's Reform UK party, including millions of pounds from two cryptocurrency entrepreneurs, Christopher Harborne and George Cottrell. The Guardian has reported that several transactions from both men were flagged by bankers to the National Crime Agency, with concerns over the true source of the money in some cases.
Farage has denied any wrongdoing and triggered a byelection in his Clacton-on-Sea seat to demonstrate voter support. He faces no organised opposition as all main competitors have refused to field candidates, promising to stand later if a parliamentary investigation prompts another byelection.
Government Response and Further Proposals
Ministers have promised to toughen the elections bill when it returns to the Commons on 14 July, including an amendment to cap donations from expats at £100,000 for a year after their return to the UK. However, many Labour MPs believe the government has not gone far enough. Another proposal from Labour MP Stella Creasy for a £100,000 cap on all individual donations is understood to have less support than the four main amendments.
A spokesperson for the Ministry of Housing, Communities and Local Government said: "[We] will keep looking for ways to strengthen the bill as it works its way through parliament."
