Prime Minister Andy Burnham has withdrawn his support for capping political donations, a move that has reportedly caused anger among activists and Labour MPs who have advocated for changes to party funding.
Government sources indicate that Mr Burnham has decided against backing amendments to the elections bill, which would introduce a cap on the amount an individual or organisation can donate. This decision comes after a lobbying campaign by Labour's trade union supporters, who argued that such amendments could hinder their ability to donate to the party.
The Prime Minister had previously indicated support for a £500,000 donations cap in an email to campaigner Shaun Bowler in May. The elections bill, which aims to lower the voting age to 16 and strengthen rules against foreign interference in donations, is scheduled to return to the Commons next week.