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UK Local Elections 2026
22OCT

Peers table four caps on party donors

3 min read
16:26UTC

The Lords gave the Representation of the People Bill its Second Reading on 14 September; four of the 73 amendments since tabled would limit how much one donor can give.

PoliticsAssessed
Key takeaway

None of the four Lords donor caps would touch money given before the law takes effect.

The House of Lords gave the Representation of the People Bill its Second Reading, the first debate on a bill's principle, on 14 September⁠1. The Bill reached peers after the Commons passed it at Third Reading. Committee stage, where peers go through it line by line, had no sitting date as of 5 October, and 73 amendments were tabled for it⁠2.

Four would limit how much one donor can give, the ceiling the Commons declined to write in when it added a cryptoasset ban and an overseas-elector cap instead:

- Baroness Hayter of Kentish Town (Labour) would cut the cap on gifts from overseas electors from £100,000 to £10,000. - Lord Carter of Haslemere would let ministers set an annual cap for every donor by order, on an Electoral Commission recommendation. - Lord Cromwell would cap individuals at £100,000 every five years and a party's total donation income at £7m a year. - Lord Carlile of Berriew would cap any UK-resident donor at £5m a year, counting connected persons together.

The designs differ most on who sets the number. Carter's leaves it to a ministerial order and the regulator's advice, so Parliament would not vote on a figure; Cromwell's and Carlile's write one into the Bill, and either would stop a single donor giving Reform UK what Ben Delo gave it in September. As tabled, none of the four reaches a gift made before the new law takes effect.

Conservative frontbench peers argued against retrospective rules at Second Reading⁠3. The Bill already reaches back once, though: its cryptoasset ban is backdated to 25 March.

Deep Analysis

In plain English

A bill becomes law only after both the House of Commons and the House of Lords agree its text. The Commons passed this one, a wide Reform of how elections and party money work, in early September. In the Lords, Second Reading is the general debate. Committee comes next, when peers go through the bill line by line and vote on changes, called amendments. Under the 2000 party-funding law, one person can give a party any amount. Four peers want one. Each proposal would only apply after the law starts, so money already given would be untouched.

Deep Analysis
Root Causes

Article 7 of the European Convention on Human Rights bars creating a criminal offence for past conduct. Lord Cromwell's design carries criminal offences, so it could only ever apply to future gifts.

A civil clawback of money already given would engage the protection of property in Article 1 of the Convention's First Protocol. A party could argue in court that it lawfully owns a banked gift.

Timing sits with the Government. A Lords committee of the whole House meets when ministers' business managers schedule it, so the gap between Second Reading and committee is set by the Government, not by the peers tabling amendments.

What could happen next?
  • Consequence

    Without a committee date, a cap cannot become law before the Lords timetable allows, and every week of delay extends the period in which unlimited gifts stay legal.

    Short term · Assessed
  • Risk

    If the Lords adds a cap and the Commons removes it, the Bill enters ping-pong between the Houses, delaying its other provisions, including voter ID changes.

    Medium term · Suggested
  • Precedent

    The Bill's backdated cryptoasset ban gives peers who want retrospective caps a precedent inside the same Act.

    Short term · Suggested
First Reported In

Update #18 · Legal advice halts England's council mergers

House of Lords· 7 Oct 2026
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Rhun ap Iorwerth / Welsh Government (Plaid Cymru)
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Michael Marra / Scottish Labour
Michael Marra / Scottish Labour
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Andy Burnham / Labour Party
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Burnham told conference in Liverpool on 29 September that Labour's next manifesto will commit to changing the electoral system, and invited every party into a National Commission on Electoral Reform. He has not named a replacement system, and no chair or remit has been published.

Written with AI from Lowdown's published reporting. Not individually reviewed by an editor. Editorial standards.