An amendment to the Representation of the People Bill, known as new clause 120, has been proposed to introduce an immediate annual cap of £500,000 on political donations. This cap would then fall to £100,000 in the following calendar year, giving the government until the end of the second year to establish a permanent limit.
The proposed cap, which would not exceed £500,000, would require parliamentary approval. The amendment explicitly exempts trade unions from the cap, provided they comply with existing regulations concerning political funds.
This Wednesday, Parliament is set to consider measures within the Representation of the People Bill that aim to cap donations from overseas donors. The government has also indicated it will consider lowering the amount of money political parties are permitted to spend.