TUC calls to rein in 'out of control' spending after Reform UK's £72m

Government plans £100,000 cap on donations from overseas-resident British donors

The Trades Union Congress on Tuesday called for “out of control” UK political spending to be reined in, suggesting that the “health and integrity of democracy” have been threatened by £72m in donations to Reform UK from two British crypto-billionaires who had recently lived abroad. In a joint statement issued at the TUC’s annual congress in Brighton, the umbrella group for British unions said the government should “protect our democracy from being captured by the super rich.” TUC head Paul Nowak spoke at the congress about the recent donations to Reform UK.

The intervention follows two donations totalling £72m to Reform UK from two British crypto-billionaires who had both recently lived abroad, a development that has reopened the debate over party funding. The TUC’s joint statement did not explicitly call for a cap on domestic donations to match those the government plans to impose on foreign-based gifts, but unions signalled openness to discussions on any initiatives to “clean up” party funding.

There are currently no restrictions on the amount of money UK-based donors can give to political parties. The government is preparing to change the law on donations from British voters living overseas, including a £100,000 cap backdated to 25 March. The TUC’s statement also makes the case that trade union donations should not be treated in the same way as large contributions to parties from wealthy individuals.

Unite leader Sharon Graham told the BBC she favoured a cap of £500,000 to £1m on individual donations from UK-based citizens. She argued that union donations should be treated differently because they are composed of many small contributions. “There is a difference between a crypto-billionaire based in the UK or abroad giving millions and trade union members who are nurses, cleaners, bus drivers giving 10p a week which adds up cumulatively to what we give to Labour,” Graham said.

GMB general secretary Gary Smith was more guarded. “Whether there will be a cap on political donations, we will wait and see,” he told the BBC. “We will talk to the government at the appropriate time but we can’t have any confusion between the political voice working people have through their unions and crypto-billionaires.”

The GMB has been among the most wary of a domestic-donations cap, in part because many in the trade union movement — especially those with links to Labour — fear a future government could use such a cap to restrict union giving. Labour has received almost £43m from trade unions since 2020, according to figures cited by the TUC; unions raise that money through individual workers’ membership fees.

Behind the scenes, officials recognise the eye-watering donations from Reform UK have “changed the game” and that some form of domestic cap may have to be considered.

The TUC’s statement did not call for caps on party spending rather than donations — one option for dealing with the Reform UK war chest — nor did it propose treating large union donations as a series of smaller individual contributions to escape any cap. Some in the labour movement have argued the latter approach would be politically difficult to defend.

Not all unions donate to Labour, and those that do not are reported to be relaxed about a cap. One union official said the events of the past few days had been helpful in arguing for more restrictions on political donations. Discussions among the three largest UK unions with financial links to Labour were expected to continue on Wednesday behind closed doors in Brighton.