Labour’s Farage donor crackdown hits a Downing Street roadblock

Labour's efforts to introduce a cap on political donations to counteract Nigel Farage’s big-money backers have hit a roadblock at Downing Street. Two officials briefed on government thinking revealed that a universal domestic cap on political donations will not be included in the elections bill when it returns on September 2. The officials, however, did not rule out revisiting the issue in the future, emphasizing the prioritization of cracking down on foreign interference and crypto billionaires as part of the legislation.

The current limit on individual donations from U.K. donors is £11,180, but Labour's Andy Burnham had previously expressed support for a cap, suggesting a figure around £500,000. The Labour leader's recent appointment in July had led to a waiting period for a signal to start work on the donation cap within the Representation of the People Bill.

However, the officials suggested that ministers could delay the action and consider it when the bill reaches the House of Lords. A Labour MP pushing for a donations cap dismissed the arguments against it as "bullshit" and accused the government of being "scared of the unions." The implications of implementing a cap, particularly one with or without an exemption for unions, are significant for Labour's finances and the party's historic relationship with trade unions.