UK Unions Split Over Plan to Cap Political Donations
Britain's union leaders met on Monday, 14 September to discuss a possible cap on political party donations in the UK, and left divided over what it would mean for their own funding.
Paul Nowak, general secretary of the Trades Union Congress (TUC), the body that brings together most UK unions, told the TUC conference in Brighton that the government must stop the super-rich from corrupting politics. He described the recent donations to Reform UK as a crisis for democracy. The Guardian
The row follows £72m given to Reform UK in 24 hours by Christopher Harborne and Ben Delo, two billionaires who made their money from crypto. Those were the two largest political donations in history, at £36 million each, according to earlier reporting. Sky News
Nowak said only people who live in Britain and pay tax here should be allowed to donate, and he called for a ban on crypto donations. He said the donations to Reform UK suggest Nigel Farage is a "politician for sale". The Guardian
A bill now before parliament would limit donations from British donors living overseas to £100,000. Nowak wants to go further, with a residency and tax test for all donors, not only those living abroad.
The split is tactical. Many union leaders, including GMB general secretary Gary Smith, fear a domestic cap could let a future right-wing government curb union donations to Labour. Prospect general secretary Mike Clancy shares that caution, and Prospect is not affiliated to Labour. Unite general secretary Sharon Graham backed a limit, which puts the country's second-largest union on the opposite side from the sceptics.
Labour-affiliated unions are working on a joint statement on donations for the TUC general council to consider on Tuesday. The statement is still in draft. No agreed TUC position has been announced.
This caution has a recent history. On 9 September, Nowak said he was concerned a cap could silence union members' voices and warned Andy Burnham against introducing one. Politico On 13 September, he rejected comparisons between billionaire donations to Reform UK and trade union funding of Labour. Morning Star
The broader context here is a funding model under pressure from two sides. Labour relies on affiliated unions, which pool small contributions from millions of members through internal votes and rules. Reform UK has just shown it can raise a similar sum from two individuals in a day, like filling a reservoir with a bucket brigade versus a single hose. Sceptics of a cap argue those sources cannot be treated as identical without penalising collective organisation. Supporters argue very large gifts create leverage, whatever the source.
Looking at what this means for the week ahead, the test is narrow. It is whether Labour-affiliated unions can agree language that condemns large individual donations while shielding affiliation fees from a future law. Failure would leave the TUC without a common line as parliament debates the overseas-donor bill. Agreement would still leave the harder questions open: what level any domestic cap should be set at, and who writes the exemptions.
