UK MPs weigh £100,000 donation cap as mega-donors surge
British lawmakers will vote next week on a proposal to cap all individual political donations at £100,000, an attempt to curb the surging influence of mega-donors on the country's democratic process.
Next Tuesday, the UK’s Representation of the People Bill returns to the House of Commons, carrying a proposed amendment to cap all individual political donations at £100,000 per calendar year. The measure, put forward by Labour MP Stella Creasy, aims to close a loophole that currently allows unlimited contributions from anyone holding a UK address. If passed, it would represent a significant tightening of political finance rules ahead of the next general election.
The push for tighter limits follows a dramatic shift in how British political parties are funded. According to Transparency International, the share of private donations coming from individuals or companies giving £1m or more surged from just 1% in 2015 to 35% in 2024. A recent poll indicates 83% of the British public now believes wealthy individuals are attempting to buy political influence.
The current regulatory framework is struggling to keep pace with the scale of this money. Last year, the government commissioned the Rycroft review into foreign financial interference, which recommended a £100,000 cap on overseas donations and a one-year residency requirement. However, critics argue that targeting foreign addresses misses the broader issue of concentrated wealth in domestic politics.
The ease with which proposed rules can be circumvented was highlighted by the actions of Christopher Harborne. The Thailand-based crypto-billionaire and benefactor of Nigel Farage reportedly concluded "Where there’s a will, there’s a way" before simply registering a Hampshire address to continue donating. For investors and businesses, this regulatory arbitrage creates uncertainty, as policy decisions risk being perceived as responsive to a handful of mega-donors rather than broad economic interests.
Creasy’s amendment seeks to treat all donors equally, regardless of nationality. She notes that other major democracies, including France, Italy, Australia and the US, already limit what an individual can give in a year regardless of where they live. The proposal also attempts to shield trade unions and civil-society organisations, which operate under strict existing transparency laws, from being blamed for failures to reform the system.
Lawmakers face a clear choice when the bill returns to the floor. Without a universal cap, the sheer volume of capital available to a small number of individuals will continue to raise questions about the integrity of UK policy-making.
