Research reveals surge in billionaire funding of UK political parties

British political parties have received a significant influx of funding from wealthy individuals, with research indicating that mega-donations have become a dominant feature of the political landscape over the past two parliaments. A new study by the thinktank IPPR reveals that a total of £179m has been donated by affluent individuals since 2019. This data highlights a growing influence of large-scale private capital in Westminster, marked by a notable increase in single contributions exceeding one million pounds. The findings suggest a structural shift in how political campaigns are financed, moving away from broad-based support towards reliance on a small number of high-net-worth donors.

The acceleration in individual contributions is particularly evident when compared to historical averages. Between 2001, when donation records began, and 2018, the annual average for donations exceeding one million pounds stood at £3.9m. However, between 2019 and 2025, this figure rose sharply to £13.1m per year. This represents an increase of almost three-and-a-half times, a growth rate that significantly outpaces inflation. The IPPR analysis indicates that 72% of all donations over one million pounds made by individuals since records began have occurred in the period since 2019. This trend has been driven by high-profile contributions, including £10m from Thailand-based billionaire Christopher Harborne to the Brexit party and £8m from supermarket tycoon David Sainsbury to the Liberal Democrats, with Sainsbury having since joined the Labour party.

Further analysis suggests that the concentration of funding is even more pronounced in recent years. In 2023, for instance, almost seven out of every ten pounds in reported private donations to political parties came from wealthy companies or individuals who gave more than one million pounds in a single calendar year. This concentration of funds has raised fresh concerns among political rivals and civil society groups about the disproportionate influence of a small cohort of wealthy individuals. These concerns were heightened this month when two crypto billionaires, Harborne and Ben Delo, announced they had each given £36m to Reform UK. Reform UK has stated that its fundraising efforts are intended to redress the balance, noting that other parties have received millions in mega-donations in previous years, including contributions from Frank Hester to the Conservatives and Gary Lubner to Labour.

The IPPR figures are derived from Electoral Commission data dating back to 2001, supplemented by analysis from Transparency International and the two recent record donations to Reform UK. In response to the growing influence of large donors, some Labour MPs are advocating for a cap on annual donations, with proposals ranging from £100,000 to £500,000. These members intend to raise the issue at the party’s autumn conference, and proposals for a cap are expected to be tabled when the government’s current elections bill proceeds to the House of Lords later this year. However, the government has been reluctant to implement a cap due to opposition from some trade unions, who fear such measures could restrict their ability to donate. Despite this, the government has pledged to address the issue of mega-donors and has already introduced a cap of £100,000 per year for donations from overseas voters.

Harry Quilter-Pinner, executive director of IPPR, described the shift as a fundamental change in the funding of British politics. He noted that while million-pound donations were once exceptional, they have become a significant part of the political system since 2019. Quilter-Pinner argued that this trend represents the Americanisation of British politics, where parties may become dependent on a handful of individuals with substantial resources. He called on the government to introduce a £100,000 annual cap immediately and reduce it over time to prevent any single individual from bankrolling a party solely due to their wealth. Civil society groups have echoed these calls, urging the government to take decisive action to limit the influence of big money in politics and return power to ordinary voters. Duncan Hames of Transparency International UK described the current situation as completely out of control, arguing that it makes a clear case for the government to bring forward an annual cap on political donations swiftly.