Labour donation plan sparks legal warning

A planned crackdown on overseas political donations could force Reform to return two huge gifts and trigger a human rights fight.

Sep 15, 2026

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Labour donation plan sparks legal warning

A planned crackdown on overseas political donations could force Reform to return two huge gifts and trigger a human rights fight.

In brief

A planned crackdown on overseas political donations could force Reform to return two huge gifts and trigger a human rights fight. Retrospective election law is the flashpoint, with critics saying Labour risks breaching legal certainty while trying to curb Reform funding. Originally reported by Dailymail.

Labour targets mega gifts

Labour wants to block two £36 million donations to Reform by tightening rules on money from political donors based abroad.

Backdating is confirmed

Downing Street says the crackdown will apply retrospectively. Critics argue that changes the rules after donations were made.

“applied retrospectively”

Reform may repay millions

The plan could force Reform to return donations announced last weekend by crypto billionaires Ben Delo and Christopher Harborne.

Ellis warns of breach

Former attorney general Sir Michael Ellis says the plan may conflict with the ECHR and Labour's Human Rights Act.

Goalposts claim lands

Ellis argues Labour is changing donation rules to limit Reform's new financial muscle.

“patently obvious that Labour are trying to move the goalposts”

Natural justice disputed

He says retrospective penalties offend English legal tradition, especially where election law can carry criminal consequences.

“offensive to English law and the rules of natural justice”

Human rights test looms

Ellis says ministers may struggle to certify the legislation as compatible with the Human Rights Act.

“Labour could come a cropper on their own legislation”

The cap is £100,000

Ministers plan to limit donations from British citizens based abroad to £100,000 a year.

March date matters

No 10 says the rule change will be backdated to 25 March 2026. After that, donors must prove 12 months on the UK electoral register.

Residency rules tighten

A new residency test would require donors to show an ongoing UK presence, possibly through tax status or similar evidence.

“ongoing presence in the UK”

Farage defends legality

Nigel Farage has insisted that two £36 million donations are

Nigel Farage says Reform's two record donations were legal when accepted.

“100 per cent compliant with the law today”

Reform is spending already

The party has begun using the money for a recruitment drive and plans for a new TV channel.

Yusuf calls it partisan

Reform home affairs spokesman Zia Yusuf says Labour is using retroactive law to damage a political rival.

“creating retroactive laws to try and bankrupt a political opponent”

Legal certainty at stake

Yusuf argues predictable rules are part of fair political competition, and retroactive changes turn politics into raw power.

“there is no stopping point”

Delo may qualify

Ben Delo said in April he would return to Britain early to support Reform. Records cited by the Mail say he has been registered in Oxfordshire since 2022.

Harborne's record varies

Christopher Harborne has been registered in Hampshire on and off since 2020, but reportedly not in the UK in 2021 or 2024.

The law remains unclear

Officials have not set out the full scope of the new rules, leaving open who must repay money and how the residency test will work.

Fight shifts to legality

The dispute is now less about the donors alone and more about whether Parliament can rewrite donation rules after the fact.

The key point

Retrospective election law is the flashpoint, with critics saying Labour risks breaching legal certainty while trying to curb Reform funding.

Read the original on Dailymail

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