The Representation of the People Bill, a landmark piece of legislation that could reshape British politics, has been delayed by incoming Prime Minister Andy Burnham, sparking a debate over the influence of mega-donations. The bill, which includes measures such as extending the franchise to 16- and 17-year-olds and new voter registration rules, was due for its third reading in Parliament but was postponed until after the summer recess. This delay allows Burnham's administration to shape the final law, particularly concerning the role of big money in politics.
Mega-Donations Under Scrutiny
The Guardian's reporting on Nigel Farage's finances, including a £5 million donation from Thailand-based cryptocurrency billionaire Christopher Harborne, has intensified scrutiny of political funding. Harborne gave £9 million to Reform UK in 2025, the largest single donation by a living donor to a British party. Steve Goodrich, head of research at Transparency International, noted, "What you're seeing is an increasing Americanisation of British politics, where money talks the loudest." In 2015, only 1% of private donations came from donors giving £1 million or more; by 2024, this rose to over a third.
The rise in mega-donations stems from a 2023 decision by the Conservative government to hike the election spending cap by 80%, locking parties into a cycle of escalating costs. In 2024, parties and candidates spent over £90 million on the general election, the highest in modern British history. Goodrich explained, "If you're a fundraiser who has to raise £100 million for an election, the quickest way is to tap up a bunch of billionaires."
Proposed Caps and Party Resistance
The bill includes an annual £100,000 limit on donations from British citizens abroad and new checks to prevent foreign donations via shell companies, along with a temporary moratorium on cryptocurrency donations. However, some Labour MPs, including Stella Creasy and Alex Sobel, have proposed amendments for a permanent ban on crypto donations and a cap on individual donations. Creasy's proposal of a £100,000 cap would have reduced Reform UK's registered donations by an estimated 85% in 2025. Sobel proposed a £1 million cap.
Despite these proposals, resistance remains. Kiran Stacey, the Guardian's policy editor, noted, "There's always been a standoff between Labour and the Conservatives about limiting donations." The Conservatives benefit from wealthy individual donors, while Labour receives large union donations, giving neither party a strong incentive to adopt a cap. Goodrich added, "Each of the major parties has tried to avoid talking about this substantively, because it raises awkward questions about where they get their money from."
Global Comparisons and Public Opinion
Burnham, who previously suggested a £500,000 cap on political spending during the Makerfield byelection, could look to other countries. Canada bans corporate and trade union donations and limits individual donations to just $1,775 per year. Australia, Italy, Belgium, and the Netherlands also impose caps. The UK is an outlier among Western democracies, with a majority of the public believing big money has too much sway in politics. Goodrich argued, "Introducing a cap would restore faith in the idea that politicians are elected to serve the general public. It's the only way of protecting democracy from big money – before public trust crumbles."
Reform UK's Financial Backers
Reform UK's fortunes are closely tied to a handful of wealthy donors, including Harborne, who has donated over £22 million, Ben Delo, founder of a crypto exchange, and Nick Candy, a billionaire property developer. The party has used the death of Ann Widdecombe, its immigration and justice spokesperson, to argue that restricting party finances could imperil politicians' lives. However, many MPs believe ever-larger donations are corrupting the political system.
The Institute for Public Policy Research noted a troubling affinity between men who made fortunes from cryptocurrencies and tech platforms and a global network of right-wing politicians hostile to democracy. Whatever happens with Farage, the new British right will rely on continued support from deep-pocketed funders.
