In the UK today, there is still no legal limit on how much a single donor can give to a political party each year. That simple fact shapes our politics in profound ways. When unlimited money flows into campaigns from a small group of exceptionally wealthy individuals, it becomes harder for the rest of us to get our voices heard.

Introducing a clear cap on political donations is one of the most effective steps we could take to rebuild trust. With the upcoming Elections Bill, the government has an opportunity to put a donations cap into law.

The question is not whether to cap donations, but where the cap should be set. To understand what is at stake, it helps to look at three possible levels: a high cap of £1,000,000, a mid-level cap of £100,000 and a lower cap of £10,000.

Politics should never be a personal project for the ultra-rich

Setting a donation cap as high as £1,000,000 per year may seem ludicrously generous. In some ways, that is the point. It would still allow political parties to receive sizeable contributions, but it would put a clear boundary around the influence of the very wealthiest citizens.

In recent years, donations of over a million pounds have become common place. Just today, Reform UK were given £9,000,000 by Christopher Harborne, their largest single donation ever, and the largest donation ever from a living donor. The largest single donation ever was £10,000,000 for the Conservatives from Lord John Sainsbury’s will in 2023. The largest donation for the Liberal Democrats was £8,000,000 from Lord David Sainsbury in 2019, while Labour’s was £4,000,000 from Quadrature Capital Ltd in 2024.

With no ceiling at all on how much a wealthy person could give, even larger donations are permissible. Under a cap like this, no individual could single-handedly bankroll a party. That matters. It stops political parties becoming personal vehicles for those who can afford to pour vast sums into the system, and treat political parties like just another yacht or island.

We can reduce elite influence

A cap at £100,000 changes the dynamic more significantly. Contributions at this level can still be generous, but they are no longer so large that a party can revolve around a handful of donors on first name terms with the party leaders.

Under a £100,000 cap, parties would need a broader donor base. This is a model that begins to rebalance power. It reduces the risk that policy priorities are driven by the financial interests of a small elite, and instead are focused on the health of the broader economy. It is a step towards a healthier political culture.

Towards a fairer democracy

The Committee on Standards in Public Life has previously recommended a £10,000 cap on donations from any individual or organisation in any year. Let’s be blunt, the vast majority of people would not be able to donate this kind of money. But a cap of £10,000 would end the era in which political parties can rely on rich benefactors.

That means engaging with more people, building membership and relying less on the biggest cheques. When parties depend on a wider pool of supporters, their incentives change. They must spend more time listening and responding to the concerns of ordinary voters, not just those who can afford to give more.

As Parliament considers reforms to electoral law, this is the moment to commit to a donation cap – meaningful reform starts with limiting how much any one donor can give.

Add your name to demand the Elections Bill includes a donation cap

Political parties cost money to run. In the UK, they’re funded by a variety of sources, including membership fees, grants, and donations. Donations come from individuals, companies, and trade unions.

The Electoral Commission reported that in 2024 alone, parties accepted almost £100m in donations. That’s a vast quantity of money flowing into our politics. What’s more, these donations aren’t just the product of small donations accumulating from lots of supporters. In fact, a fifth of all major donations in the decades between 2001 and 2021 came from a mere ten ‘big donors’.

The existence of these big donors raises a worrying question: how much sway might they have over our politics? In a democracy, those with the deepest pockets shouldn’t be able to pay for influence.

With a never-ending stream of financial scandals in politics, party funding is out of control. Surely we should be able to put a limit on an individual’s power through their purse?

Do we have political donation caps in the UK?

When a small number of the wealthiest individuals and organisations can fund election campaigns and the running of political parties, we are opened up to a culture of politics for sale.

Yet at the moment, there is no limit on the amount of money any one person or organisation can donate. And this means there’s no limit on just how much influence can be bought.

By introducing a cap on donations, the Government could finally bring about an end to toxic big donor culture. Political influence would be fairly shared amongst all of us, not concentrated in the hands of the wealthiest few.

Donations are regulated – but the rules don’t go far enough

Fortunately, some rules are in place to regulate political donations. These include the requirement that donations or loans over £11,180 must be reported, and limitations on who can donate.

But these rules don’t go far enough. There are loopholes which allow individuals and organisations to avoid this reporting threshold.

Loopholes muddy the already murky waters of political donations, pointing to an especially pressing need for donation caps. With money flowing into politics from often secretive sources, it’s crucial that the spending of any one person or organisation is limited.

We need tighter limits on political donations

To stop the outsize influence of wealth on our politics, we need donation rules to be tightened. This includes the urgent need for donation caps.

If the Government wants to ensure that we, the voters, trust our democratic institutions, it needs to start with ending the reign of big donors. We need assurance that everyone’s voice carries equal weight – something difficult to believe when power is for sale to the highest bidder.

Agree that politics shouldn’t be for sale? Add your name.