Peers are set to debate tighter restrictions on political donations as concern grows over the £72mn given to Reform UK by two cryptocurrency billionaires and the potential implications for Britain’s political funding system.
The House of Lords will consider legislation that could require Reform to return some of the money donated by Ben Delo and Christopher Harborne, who each gave £36mn to Nigel Farage’s party.
The donations have intensified calls for a broader cap on political contributions, with Labour peer Lord Wills expected to raise the issue during debate on the Representation of the People Bill.
Under the current version of the legislation, British citizens living overseas would face a £100,000 limit on political donations. The measure would be backdated to March, potentially bringing Delo and Harborne within its scope, although questions remain over when each donor established UK residency.
The controversy has also put pressure on Reform to provide greater clarity over the circumstances surrounding the donations.
Richard Tice, the party’s deputy leader, said he was not an “executive assistant” to the party’s major donors when questioned about the contributions. He maintained that the donations had been made within existing rules but was unable to provide details about when the two cryptocurrency billionaires moved to Britain.
The scale of Reform’s fundraising has prompted criticism from opposition parties and organised labour.
Lisa Smart, Liberal Democrat spokeswoman, accused Farage of seeking to “bring Trump’s America to our shores by buying his way into power”.
She added: “It can’t go on like this. Andy Burnham needs to introduce a cap on political donations. Our democracy depends on it.”
Rachel Millward, deputy leader of the Green party, also called for restrictions. Writing on X, she said: “The UK needs a cap on political donations to ensure we serve people, not profit.”
Paul Nowak, general secretary of the TUC, described the donations as a “crisis for our democracy” during the union’s congress.
He said: “We cannot allow our political system to be captured by corporate interests. And, congress, let no one tell you there is any similarity between care workers chipping in a few quid a year through their union and a party bought and paid for by billionaires.
“So, we need a proper conversation about how we clean up our politics that doesn’t push workers to the margins, but does stop the super-rich corrupting our politics.”
Sharon Graham, general secretary of Unite, argued that any restrictions should distinguish between large individual donations and contributions made collectively by trade union members.
She suggested that union donations should be exempt from a cap, saying they were “not the same as two crypto millionaires waking up and giving £72 million”.
The dispute exposes a broader tension over the role of private wealth in British politics as Reform seeks to translate its growing electoral support into greater financial and organisational strength.
For ministers and opposition parties, the immediate question is whether existing donation rules remain capable of preventing wealthy individuals from exerting disproportionate influence over political parties — and whether the proposed legislation will provide a meaningful answer.
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