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Peers to debate donations law changes after Reform's £72m windfall
Ministers say the change would curb foreign influence and could force some donations above the new limit to be returned.
Reform secured £72 million from two wealthy donors, prompting peers to debate donation law changes that could reshape campaign financing rules.
The Rycroft Review into foreign financial influence published in March prompted the government to propose a £100,000 annual cap on donations from overseas electors.
Government officials intend the new limit to apply retrospectively to donations made since 25 March, restricting individuals returning to Britain until they have been resident for one full calendar year.
Whether Reform's donations are caught depends on individual donor circumstances, creating uncertainty around the party's financial advantage despite the extraordinary £72 million windfall.
Labour warnings question whether individuals should wield such financial influence, as Britain currently maintains no general cap on donations from UK-based individuals.