UK peers to debate donation law changes after Reform UK's £72m windfall

The House of Lords is due to debate changes to political donation rules later on Monday after Reform UK received £72m from two billionaire donors within 24 hours. The proposed bill would introduce a £100,000 cap on donations from British voters living abroad, and the government wants the change to apply retrospectively from 25 March. The debate comes amid growing pressure across parties over the scale of political funding in the UK.

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The donations were made by Ben Delo and Christopher Harborne, both British and both of whom have spent time living overseas. The bill under discussion follows a review by former civil servant Philip Rycroft, which was aimed at countering foreign influence in UK politics. Labour peer Lord Wills has said he intends to amend the bill so that donations from people living in the UK could also be capped.

Reform UK has accused Labour of trying to "rig the system" in response to the proposed changes. Nigel Farage's party says the donations were lawful, and Robert Jenrick, the party's economic spokesman, said on Sunday that the money was "entirely in line with the law as it is, and as far as we know, the law as it's going to be in the future". Sharon Graham, the general secretary of Unite, has also backed limits on individual donations, arguing that large gifts from billionaires are different from small contributions from ordinary workers.

The dispute has wider significance because it goes to the heart of how UK parties are funded and how far the law should go in limiting the influence of wealthy donors. The government is also proposing a minimum residency period so that the £100,000 cap would still apply for a period after someone moves back to the UK. Housing Secretary Angela Rayner said the rule changes would apply retrospectively, and that anyone not complying would have to return the money.

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The issue has become more urgent because Reform UK's donation total is being described as record-breaking, prompting debate not only about expat donations but also about whether larger individual gifts should face tighter controls. The current bill is focused on donations from British voters living abroad, but the debate in the Lords is likely to test whether peers want to widen the scope of the reform. That could shape the next stage of the legislation and determine how much of the £72m Reform UK can keep.

What remains unclear is whether the bill will be amended in the Lords and how the government will respond if peers push for broader limits. It is also not yet clear whether Reform UK will be able to retain the full amount of the donations. The debate later on Monday will be the next key moment in a fast-moving argument over party finance and political influence.

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