Prime Minister Andy Burnham has officially dropped his support for a legislative effort to cap political donations. The proposed amendments to the upcoming elections bill were intended to limit the amount of money individuals or organizations could contribute to political parties, a measure long championed by various activists and some Labour MPs as a way to curb the influence of 'mega-donors.'

According to government sources, the decision to abandon the cap was made following an intensive lobbying effort by trade unions. These unions, which serve as significant financial backers for the Labour Party, reportedly argued that the proposed limits would undermine their capacity to provide necessary funding to the party. The elections bill is scheduled to return to Parliament for its final stages next week, and the government’s withdrawal of support for the amendment effectively signals that the cap will not be implemented in this legislative cycle.

The move has sparked frustration among internal party critics and campaign groups who view the decision as a retreat from promised reforms. While the government has not issued a formal public statement detailing the reversal, the shift highlights the ongoing tension between the desire for campaign finance reform and the practical reliance on institutional funding sources like trade unions.