Burnham backs away from cap on political donations

Prime Minister Andy Burnham has stepped back from backing a cap on political donations, prompting frustration among campaigners and Labour backbenchers who have long pushed for changes to party funding rules. Government sources say ministers will not support amendments to the elections bill that would limit how much an individual or organisation can donate in a single contribution.

The reversal follows a lobbying push from trade unions, Labour's major financial backers, who warned that such a cap could restrict their ability to fund the party. It also marks a shift from Burnham's position just weeks earlier, when he told an electoral reform campaigner by email that he would support a cap of £500,000.

Backlash from within Labour

Labour MP Stella Creasy, who tabled an amendment for a donations cap, said wealthy individuals are increasingly treating British politics as a game to secure desired outcomes. Campaigner Shaun Bowler, who received Burnham's assurance in May, said the prime minister has broken his promise to both him and voters, arguing that large donations inevitably create influence.

Darren Hughes of the Electoral Reform Society warned that massive donations undermine public trust, leaving people to wonder what donors expect in return.

A Labour source said the elections bill is primarily focused on lowering the voting age to 16 and protecting against foreign interference, rather than restricting domestic donations.

Compromise falls short

The government has already pledged to cap donations from British citizens living abroad at £100,000, but a dispute continues over whether similar limits should apply domestically. Facing union pressure, Creasy proposed a compromise of a £500,000 cap that would gradually decrease over time. However, sources say even this revised proposal has failed to secure ministerial backing, as capping donations is reportedly not a priority for Burnham.