Stella Creasy has proposed an amendment that would put an immediate ceiling on political donations and require parliament to approve any permanent limit. Guardian Business reported that the amendment, known as new clause 120, would set the annual maximum at £500,000 before reducing it to £100,000 in the following calendar year. The government would have until the end of the second year to establish a lasting cap, which could not be higher than £500,000.
Creasy said the proposal would apply to all donors, regardless of the passport they hold, while exempting trade unions that follow existing rules governing political funds. She argued that pooled contributions from thousands of workers in a membership organisation should not be treated in the same way as a multimillion-pound cheque from one wealthy person. The amendment is being put forward as measures concerning donations from overseas donors come before parliament on Wednesday in the representation of the people bill.
Creasy said restricting donations according to location alone would leave open the possibility of wealthy people using UK companies or postcodes to maintain their influence. The article said Christopher Harborne gave Reform £9m in one day, and that donations of at least £1m accounted for 1% of all donations in 2015 but a third by 2024. Creasy also pointed to the Phillips review of party funding, which collapsed in 2007 amid disagreement over whether individual donations and collective contributions should both be limited.
She said legislation governing the use of trade union funds has existed since 1913, while regulation of money supplied by companies and individuals has been less even. The government has said it will consider reducing the amount political parties may spend, but Creasy described that as only part of the response.
Without a donation limit, she warned that donors could use local groups, parties could build up reserves and enforcement could happen only after the event. Stella Creasy is a Labour and Cooperative MP for Walthamstow.