GMB warns Labour MPs that cap on political donations could endanger party funding

In its letter to MPs, the union said ‘this amendment risks having significant unintended consequences.’ Photograph: Adrian Dennis/AFP/Getty Images View image in fullscreen In its letter to MPs, the union said ‘this amendment risks having significant unintended consequences.’ Photograph: Adrian Dennis/AFP/Getty Images GMB warns Labour MPs that cap on political donations could endanger party funding Exclusive: Sources say Labour whips are calling MPs urging them to heed union’s warning and not vote for cap One of Britain’s biggest trade unions has told Labour MPs not to vote for a cap on political donations next week, saying it could endanger union funding for the party. The GMB union has written to its affiliated MPs urging them not to vote for amendments to the representation of the people bill that would cap donations at either £100,000 or £1m. The measures will be voted on next week as one of a number of potential changes to the bill that are aimed at curbing the role of big money in politics, amid a growing controversy over how Reform UK and its senior politicians are funded . Ministers are preparing for a battle with backbenchers over some of the proposed amendments, including the donations cap and an outright ban on cryptocurrency donations. Sources say Labour whips have been calling MPs, urging them to heed the GMB’s warning, causing some MPs to drop their support for a cap. The letter, which was sent to more than 80 MPs who are members of the union and which has been seen by the Guardian, says: “We believe this amendment risks having significant unintended consequences. “Trade unions are already subject to a level of statutory regulation over political expenditure that no other membership organisations face. Political funds are governed by legislation, members have clear rights to opt out, and unions are subject to extensive transparency and reporting requirements. “Affiliation arrangements are also fundamentally different from political donations and should not be treated as though they are the same.” Other major Labour-affiliated unions are understood to share the concerns. The letter underlines the decades-old battle to limit political donations, which has been resisted by the Conservatives, who have historically relied on large donations from wealthy individuals, and Labour, which is funded in large part by trade unions. Research by Transparency International shows the proportion of political donations coming from individuals and companies giving £1m or more has jumped from 1% in 2015 to 35% in 2024. That battle has intensified in recent weeks, given the revelations about funding to Nigel Farage and his party from the crypto billionaire Christopher Harborne and the convicted fraudster George Cottrell. The Times reported on Thursday that police are now investigating donations worth £500,000 made to Reform by Cottrell’s mother, while parliamentary authorities are conducting their own inquiries into gifts made by both Harborne and Cottrel