What a difference a week makes. Last Thursday, we launched a video series all about how the super-rich are buying UK democracy. We hoped to nudge the Labour government to live up to its manifesto promise to “strengthen the rules around donations to political parties”.
Then, to my dismay, last night I read that Andy Burnham has dropped his support for a “political funding cap aimed at curbing mega-donors” in the upcoming elections bill.
The prime minister, the Guardian reports, “decided not to back amendments to the elections bill, which would cap the amount a person or an organisation can give in a single donation.”
So there we have it. An elections bill touted as a once in a generation opportunity will instead tidy up a couple of loopholes but leave a broken political finance system fundamentally unchanged.
Why is Burnham refusing to act, and in so doing failing the first big test of his premiership? According to the Guardian “those close to the process say that capping donations is not a priority for Burnham and not a subject over which it would be worth triggering a fight with Labour’s biggest backers,” singling out union opposition as a key stumbling block.
This is a terrible reason not to act. Where once the unions might have been a makeweight for private funding, the reality now is that they are massively outspent by the super-rich.
Christopher Harborne gave £9m to Reform in a single day last year; the total donations across all unions to Labour this year is expected to be less than £8m. It’s also very possible to unbundle union donations as they originate from myriad small individual donors.
You can also bet that, behind closed doors, Labour’s big private donors are kicking against a cap. As I reported back in 2024, one of the reasons Keir Starmer resiled from political finance reform was backlash from his biggest donors. Now Burnham seems to be aping his benighted predecessor at the first sign of push back.
Something else is going on here, too. Burnham and his advisors will think that ducking a donations cap will benefit them electorally. The story of money in British politics is that the incumbents pretty much always believe that while the system is broken, they at least know how to use it to secure victory.
As Labour MP Stephen Kinnock told me when I was researching my last book, politicians “would rather stay with the broken system we have currently, because they know how to maximise advantage within it.”
Labour clearly thinks it can neuter its rivals’ big money – particularly Reform’s funders – without hurting its own donor class. Hence the £100,000 limit on donations from Britons abroad, evidently intended to catch the likes of Christopher Harborne (although it’s not at all clear that it will.)
But the oligarchic capture of British politics is already well underway. Political funding is now so concentrated among the super-rich that in 2023, two-thirds of all private donations came from just 19 individuals who each gave more than £1m. Without guard rails this will only get worse.
Burnham promised to change things. Just a few months ago, he said: “I do think there should be a cap on political donations.” Now? Nothing.
Burnham’s timidity is not just wrong, it’s also bad retail politics. Taking big money out of British politics is that rarest of things, a very low-cost policy with broad public support, including among Reform voters.
There is still a chance for Burnham to change course. He could tell his MPs to support Labour backbencher Stella Creasy’s amendment on a donations cap, which is due to be heard next week.
If he doesn’t, Burnham will have wasted a huge opportunity to protect British democracy. Without radical action, the power of money in our politics will only get worse – much worse.
That’s why, whatever happens in the coming days, Democracy for Sale will keep pushing to stop the super-rich buying our democracy. Burnham might be ducking the fight; we are not.
Democracy for Sale is only possible with the support of our readers: if you value our work, consider becoming a paying supporter. And if you already are one – thanks!
All the swagger and the big talk and he turns out to be a lackey of the wealthy after all.
Good reason to continue voting Green.