By Labour Home Staff | 18 July 2026
Labour MP Alex Sobel has renewed calls for major reform of political funding by tabling an amendment to the Representation of the People Bill that would introduce a £1 million annual cap on political donations from individuals and organisations.
The amendment (New Clause 80) seeks to place an annual limit on the amount any individual or organisation can donate to political parties, candidates, third-party campaigners and regulated donees, with the aim of reducing the influence of exceptionally large political donations while maintaining public confidence in the democratic process.
Announcing the proposal on social media, Sobel said:
“There are currently no limits on how much UK-based donors can give to political parties. I’m proposing a £1 million cap on donations to ensure our politics works in the public interest, not for the highest bidder.”
The proposal comes as Parliament considers the Representation of the People Bill, which already includes significant reforms aimed at strengthening electoral integrity. These include a £100,000 annual cap on donations from overseas electors, a moratorium on cryptocurrency donations, tighter “know your donor” requirements and stronger rules governing company donations.
Reforming political finance
Sobel, Labour MP for Leeds Central and Headingley and Chair of the All-Party Parliamentary Group for Fair Elections, has consistently argued that Britain’s political finance system requires further reform to limit the influence of mega-donors while protecting legitimate democratic participation.
His amendment would exempt trade union affiliation fees, membership subscriptions and other recognised democratic funding mechanisms, ensuring that the proposed cap is targeted at exceptionally large donations rather than collective political participation.
The debate has gained momentum following several high-profile donations made to political parties in recent years, prompting renewed calls from campaigners for tighter safeguards against the perception of undue influence in British politics.
Wider debate within Labour
The proposal forms part of a broader discussion within the Labour movement about modernising Britain’s electoral system and political finance rules.
Separately, another amendment tabled by Sobel calling for a National Commission on Electoral Reform has attracted support from around 166 MPs representing eight political parties, making it one of the most widely supported amendments currently before Parliament.
Reports have also suggested that Labour leader Andy Burnham has expressed support for introducing a domestic cap on political donations as part of wider democratic reform, although views within the party remain mixed.
Some trade unions, including the GMB, have voiced concerns that introducing donation caps could have unintended consequences for Labour’s traditional funding model, arguing that trade union affiliation differs fundamentally from large individual political donations.
Next steps
The Representation of the People Bill is continuing its passage through Parliament, with MPs expected to debate a range of amendments covering political donations, electoral reform and campaign finance.
Whether Sobel’s proposed £1 million cap secures sufficient parliamentary support remains to be seen, but the amendment has added fresh momentum to the wider debate over how political parties should be funded and how public confidence in the UK’s democratic system can be strengthened.
