Cap private political donations to restore trust in British democracy, think tank says

A cap on private political donations would rebuild trust in British politics, a new report has suggested.

The landmark report, published by think tank the Institute for Public Policy Research (IPPR), suggests that in response to the country’s crisis of pride and growing disillusionment with the current political system, UK democracy will undergo a “radical overhaul” through a new model of “democratic citizenship”.

He proposed various reforms that he believed would rebuild confidence in the UK’s political institutions and strengthen national unity.

These include caps on donations, which IPPR says will challenge the threat of big money in politics and reassure ordinary voters that their views matter too.

The plan proposes gradually reducing the £100,000 cap to £10,000 and banning non-UK taxpayers from donating to political parties altogether. IPPR says this will limit the influence of the super-rich on the country’s politics.

It comes as Nigel Farage faces criticism over his decision to trigger a by-election in Clacton before the completion of a parliamentary inquiry into his undeclared donations. The investigation was halted after his resignation but will continue if he is re-elected.

Mr Farage is being investigated by the Parliamentary Standards Commissioner over whether he should have registered a £5 million gift from cryptocurrency tycoon Christopher Harborne before becoming an MP.

He said the security he needs must be funded because of the numerous threats against him.

The reform leader also faces questions over the support he provided to convicted criminal George Cottrell following an attack. Sunday Times investigation.

New MPs are required to register gifts worth more than £300 they have received in the previous 12 months, unless the gift “could not reasonably be considered by others” to be related to their political activities. Mr Farage maintains he has done nothing wrong.

The IPPR cap proposal also follows the government’s announcement this week to crack down on foreign political donations and funding flowing through dubious companies.

The new rules will impose a £100,000 donation limit on donors coming to the UK from abroad for one year after their arrival.

The government has already announced a £100,000 annual cap on donations from abroad, extending to 25 March, and this will now also apply to the first year someone will be in the UK.

There are currently no limits on the amount of money UK-based donors can give to parties and politicians.

Compulsory voting and proportional system against decline in national pride

IPPR’s report found that public pride in Britain’s history, democracy, economy and influence in the world fell by at least 20 percentage points over the 12 years from 2013, while pride in sporting achievements and arts and literature fell by an average of 12 points.

Although interest in politics increased during the same period, there was a decline in overall voting rates, especially among young people.

New analysis by the think tank shows that a widening gap in voting rates by age group – which was virtually non-existent 60 years ago – means only 56 per cent of 18-24 year olds voted in the last election, compared to 81 per cent of those aged 61 and over.

There was a 20 percent gap in voting between those with minimal educational qualifications (60 percent turnout in 2024) and those with a university education (80 percent in 2024).

Proposed reforms therefore include compulsory voting for all eligible UK residents, a £10 fine for not voting and the option to vote “none of the above”.

The newspaper says that participating in elections is “the minimum responsibility of a democratic citizen.”

IPPR notes that attendance has fallen below 90 per cent only once since a similar system was introduced in Australia in 1924.

He is also calling for a more proportional voting system and what he calls a universal “Democratic Citizenship Service” for all 16 and 17-year-olds.

This will go beyond volunteering and be organized within the school system to include political participation and democratic decision-making.

IPPR says these revisions are necessary to “counter efforts by the radical right to redefine national belonging in exclusionary, racialized terms.”

He argues that the citizenship debate focuses too narrowly on immigration issues and who is entitled to social benefits. Instead, he says, the fundamental question is what it means to belong to the nation.

Jon Cruddas, who was Labour’s policy coordinator for three years, says in the report’s foreword: “IPPR makes a big argument commensurate with the challenges of our time: to resist the forces of ethno-nationalism and reinvigorate the left, progressives need to create a framework for radical democratic citizenship that allows everyone to contribute, live securely and thrive.”

Lead author and IPPR senior research fellow Dr. Nick Garland added: “The fundamental building block of collective progress is citizenship. Without a new, shared ideal of democratic citizenship, our politics is reduced to a zero-sum game of bargaining between rival groups and the narrow financial interests of voters.”

“Mainstream politicians have lost too much ground to the radical right, which only wants to talk about who can be a citizen and not about the rights and duties we all share as citizens. The failure to present a more robust idea of ​​citizenship is one of the factors behind the decline of democratic participation and political trust.”

“To change this, progressives need to be much bolder about changing the way our democracy works and having a big conversation about how we can live together.”