How do political donations work … and why are there growing calls for a cap?

The question of who funds politicians and political parties – and why they want to give money to get people elected – is an extremely heated one. In principle, UK voters can support their chosen politicians through donations or benefits, as long as those candidates and their parties keep within spending limits during an election period, which is designed to stop powerful interests from influencing the result.

However, recent years have seen the rise of mega-donors giving vast sums to political parties, leading to calls for a new cap on the amount one individual or company can donate in a year. There has also been pressure for greater transparency around financial interests after the furore over Nigel Farage’s £5m gift from Thailand-based crypto billionaire Christopher Harborne, shortly before the Reform UK leader became an MP. The rules state that gifts only have to be declared if they are political, and the Reform UK leader claims it was “personal” and freely given with no demands attached. Parliament’s standards commissioner is investigating the case. So: what are the rules on political donations and gifts?