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.
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