The GMB union, one of Britain's largest trade unions, has urged Labour MPs to oppose a cap on political donations, warning that it could jeopardize union funding for the party. In a letter sent to over 80 affiliated MPs, the union stated that the proposed amendments to the representation of the people bill risk having significant unintended consequences.
Union Concerns Over Donation Cap
The GMB's letter, seen by the Guardian, argues that trade unions already face stringent statutory regulation on political expenditure, including opt-out rights for members and transparency requirements. It emphasizes that affiliation arrangements are fundamentally different from political donations and should not be treated as equivalent. Other major Labour-affiliated unions are understood to share these concerns.
The amendments, which would cap donations at either £100,000 or £1m, are set to be voted on next week as part of efforts to curb the influence of big money in politics. The controversy has been fueled by revelations about funding for Reform UK from crypto billionaire Christopher Harborne and convicted fraudster George Cottrell.
Labour Whips Mobilize
Sources indicate that Labour whips have been contacting MPs, urging them to follow the GMB's warning. This has led some MPs to withdraw their support for the cap. The battle over donation limits has intensified, with Transparency International research showing that the proportion of large donations (over £1m) from individuals and companies has surged from 1% in 2015 to 35% in 2024.
The Times reported on Thursday that police are investigating £500,000 in donations to Reform from Fiona Cottrell, mother of George Cottrell, while parliamentary authorities are probing gifts from both Harborne and Cottrell. The Guardian earlier revealed multiple suspicious transactions to Nigel Farage and Richard Tice flagged to the National Crime Agency.
Proposed Amendments and Political Reactions
Labour MP Stella Creasy has tabled an amendment capping individual donations at £100,000, while Alex Sobel proposes a £1m cap. If selected by the speaker, these will be debated on Tuesday when the bill returns to the Commons. Creasy wrote in the Guardian that the public understands the risk of political outcomes being sold to the highest bidder, whether from overseas or UK billionaires.
While campaigning for his Makerfield seat, Andy Burnham expressed support for a donations cap, suggesting a level around £500,000. However, a spokesperson for Burnham did not respond to requests for comment. Ministers are planning a £100,000 cap on donations from British expats but not on domestic donors, prompting protests from some Labour MPs.
The GMB's letter underscores the long-standing battle over political donations, historically resisted by both Conservatives, reliant on wealthy individuals, and Labour, funded largely by unions. The current controversy over Reform UK's funding has intensified calls for reform, but the union warns that a cap could inadvertently harm Labour's financial base.
