“Introducing a clear cap on political donations is one of the most effective steps we could take to rebuild trust.”
After Reform UK were given a £9,000,000 donation by Christopher Harborne, their largest single donation ever, and the largest donation ever from a living donor, the Electoral Reform Society (ERS) has raised the alarm about the harmful effects of political parties being used as personal vehicles for the interests of the super-rich.
Harborne, the Thai-based crypto billionaire, is believed to have made the biggest donation given to a party by a living person, leading to concern among democracy campaigners about his influence. He has also donated to the Tories under Boris Johnson and bankrolled Brexit.
Farage has insisted that Harborne wanted nothing from him in return. He said: “Does he want anything in return for his money? I promise you absolutely nothing. Do I speak to him regularly? Maybe once a month, maybe once every six weeks, but certainly not more than that.”
Despite Farage’s denials, many progressives will be alarmed, with the ERS and the IPPR among those who have called for a change in the law with a cap to be put into place for donations.
Doug Cowan writes for the ERS: “In the UK today, there is still no legal limit on how much a single donor can give to a political party each year. That simple fact shapes our politics in profound ways. When unlimited money flows into campaigns from a small group of exceptionally wealthy individuals, it becomes harder for the rest of us to get our voices heard.
“Introducing a clear cap on political donations is one of the most effective steps we could take to rebuild trust.”
Among the suggestions mooted is a cap worth £1,000,000 per year, which the ERS says would stop any one individual from single-handedly bank rolling any political party, as well as a cap at £100,000 which it says would change the dynamic more significantly.
It adds: “Under a £100,000 cap, parties would need a broader donor base. This is a model that begins to rebalance power. It reduces the risk that policy priorities are driven by the financial interests of a small elite, and instead are focused on the health of the broader economy. It is a step towards a healthier political culture.”
The ERS also suggests a third option of a cap of £10,000 as recommended by the Committee on Standards in Public Life, which is justified on the basis that it ‘would mean political parties engaging with more people, building membership and relying less on the biggest cheques’.
“When parties depend on a wider pool of supporters, their incentives change. They must spend more time listening and responding to the concerns of ordinary voters, not just those who can afford to give more.”
Basit Mahmood is editor of Left Foot Forward
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