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 lower spending limits. The MPs, part of the all-party anti-corruption group, are backing four amendments to the representation of the people bill, aiming to tighten the government's plans significantly.
Liam Byrne, Labour chair of the business select committee, is calling for a permanent ban on donations made in digital currencies, replacing the current moratorium. He cited mounting controversies over Nigel Farage's funding, stating that new revelations show 'the extraordinary lengths to which Reform UK politicians will seemingly go to avoid proper oversight of their finances'. His amendment had at least 20 signatures by midday on Thursday.
Anneliese Dodds, a former Labour cabinet minister, has tabled an amendment to reduce campaign spending limits by nearly a third, from £34m to £24.4m. She argued that 'we now have an arms race in funding political campaigns' and that the public wants limits set at a more reasonable level.
Other amendments include one from Yuan Yang, calling for limits on initial party funding after it emerged that Rupert Lowe's far-right Restore Britain party started with £2.5m without declaring its source. Mark Sewards has proposed checks on donations to assess the risk of foreign interference in British democracy.
The moves come amid a mounting controversy over the funding of Reform UK, including millions from cryptocurrency entrepreneur Christopher Harborne. Questions have also been raised about financial links between senior Reform figures and businessman George Cottrell. The Guardian has reported that transactions involving both men and Reform's leadership were flagged by bankers to the National Crime Agency.
A spokesperson for the Ministry of Housing, Communities and Local Government said the government 'will keep looking for ways to strengthen the bill as it works its way through parliament'. Other proposals, such as Stella Creasy's call for a £100,000 cap on individual donations, have less support among Labour MPs.
