Lords to debate political donation cap after £72m Reform UK windfall
New legislation aims to limit donations from British expatriates, with calls to extend caps to UK residents.
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The House of Lords is scheduled to debate proposed changes to political donation laws on Monday. This debate follows a significant financial contribution to Reform UK, which received £72 million from two billionaires, Ben Delo and Christopher Harborne, within a 24-hour period. The substantial donations have intensified calls for stricter regulations on political funding.
Proposed Donation Limits
Reform UK gets second £36m gift, total £72m tops all parties' 2023 funding
Cryptocurrency investor Christopher Harborne matched Ben Delo's earlier record donation, pushing the party's cash intake beyond the combined amount received by every UK party last year.
The government is seeking to amend legislation to introduce a £100,000 cap on donations from British voters residing overseas. This proposed limit would be applied retrospectively to 25 March. The review that informed these rules, conducted by former civil servant Philip Rycroft, aimed to address concerns about foreign influence in UK politics.
Labour peer Lord Wills has indicated an intention to propose amendments to the bill. He stated on Radio 4's Westminster Hour that he plans to extend the proposed cap to include donations from individuals living within the United Kingdom. This move has been supported by figures such as Sharon Graham, general secretary of Unite the Union, who argued for limits on individual donations, distinguishing between large sums from wealthy donors and smaller contributions from workers.
Reform UK has responded to these proposals by accusing Labour of attempting to "rig the system". Robert Jenrick, the party's economic spokesman, told the BBC that the donations were compliant with current law and anticipated future legislation. The government's proposal also includes a minimum residency period for the cap to apply to individuals returning to the UK, remaining in effect for the remainder of the calendar year and the following year.
Reform UK proposes social housing priority for young British workers
The party aims to build 50,000 affordable homes annually, funded without new taxes or borrowing.
Retrospective Application and Donor Obligations
Housing Secretary Angela Rayner confirmed that the rule changes are intended to be retrospective. Speaking on the BBC's Sunday with Laura Kuenssberg programme, she stated that any donors who do not comply with the new regulations would be required to return the funds. Rayner noted that she could not comment specifically on the circumstances of Mr Delo and Mr Harborne.
Reports from June indicated that Mr Harborne, who had been based in Thailand, had registered to vote in the UK. Mr Delo had reportedly stated in April that he was relocating from Hong Kong. BBC News has been informed that both Mr Delo and Mr Harborne have returned to the UK, with Mr Delo understood to have been back since last year.
The government has previously expressed a commitment to addressing the influence of "mega-donors" and has established a dedicated taskforce to tackle this issue.
Questions this report answers
+When will the House of Lords debate changes to political donation laws?
The House of Lords is scheduled to debate proposed changes to political donation laws on Monday. This debate follows a significant financial contribution to Reform UK, which received £72 million from two billionaires within a 24-hour period.
+What is the proposed cap on political donations from overseas British voters?
The government is seeking to introduce a £100,000 cap on donations from British voters living abroad. This proposed limit would be applied retrospectively to 25 March and is part of a review aimed at countering foreign influence in UK politics.
+Will donors who do not comply with the new rules have to return money?
Housing Secretary Angela Rayner has confirmed that the rule changes are intended to be retrospective. She stated that any donors who do not comply with the new regulations would be required to return the funds received.
+Are there plans to cap donations from UK residents as well as expatriates?
Labour peer Lord Wills intends to amend the bill to include a cap on donations from individuals living within the United Kingdom. This proposal aims to extend the proposed limits beyond just those British voters residing overseas.
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