Political donors face caps under reforms

Caps on political donations are being considered by ministers as part of sweeping reforms to the UK electoral system.

- Eleni Courea

Labour is examining proposals to limit how much individuals and companies can donate to political parties as part of an effort to tighten the rules around money in UK politics.

In a report to be published in the coming weeks, the Institute for Public Policy Research will recommend that ministers limit individual and corporate donations to political parties to £100,000 a year.

The Guardian understands that officials have sought more detail on those proposals, though the work is at a very early stage and would come in for the second half of this parliament. It comes amid speculation that Elon Musk, the billionaire owner of the social media platform X, could donate $100m (£79m) to Nigel Farage's Reform UK party.

In its manifesto, Labour committed to "protect democracy by strengthening the rules around donations to political parties". At the core of this pledge is an aim to tighten protections around foreign interference in UK democracy.

In opposition, Labour raised concerns about the Conservative government's decision to abolish the 15-year cut-off at which UK citizens who live abroad were no longer eligible to vote in general elections.