Political donation cap considered after Reform UK receives £72m from crypto tycoons

Angela Rayner has indicated ministers might yet introduce a ceiling on political donations following Reform UK's £72m in gifts from two cryptocurrency billionaires. The dual £36m contributions from Ben Delo and Christopher Harborne have rekindled demands for a donations cap, which Andy Burnham is understood to have previously backed. The Government rejected amendments to its Representation of the People Bill last week that would have introduced a limit of £100,000 annually on donations from any single source. Click here to get the biggest stories straight to your inbox in our Daily Newsletter Ms Rayner suggested on Sunday this was because of worries about "loopholes", as she kept open the prospect that ministers might yet bring in a cap. She told the BBC's Sunday With Laura Kuenssberg programme: "It's not as simple as we're saying we won't put a cap." The Government has instructed officials to explore how a cap would function, with Ms Rayner stating she wished to prevent people "being able to overpower and buy their way into democracy". During her interview, she also seemed to suggest that Reform could be forced to hand back the money owing to new regulations on overseas donations that will be back-dated to cover gifts since March. The rules, which limit donations from overseas electors to £100,000 per year, were proposed in a review by former civil servant Philip Rycroft aimed at countering foreign influence in UK politics. They also apply to donations made in the first year that someone moves back to the UK. Mr Delo has been based in Hong Kong but said in April he would return to the UK to avoid restrictions on overseas donors, while Mr Harborne is based in Thailand. Ms Rayner told the BBC : "With the retrospective action, anyone that's received donations that don't comply with what was in the Rycroft review, what legislation is currently going through Parliament, would have 60 days to return that money. "That is not for those individuals, let me be really clear, I do not understand those individual circumstances, but that the retrospective action will apply from March 25." Reform's economic spokesman Robert Jenrick told the BBC his party did not believe it would have to return the money once the new proposals become law. He said: "These two donations are entirely in line with the law as it is, and as far as we know, the law as it's going to be in the future." The twin donations offer Reform a boost after a difficult summer that included the launch of a criminal investigation into allegations it breached rules on political donations and a parliamentary probe into a separate £5 million gift from Mr Harborne to party leader Nigel Farage. Mr Farage has said he intends to use the £72m to fund "the best research and policy department British politics has ever seen" and recruit "the best minds in every area" to prepare for government. Reform has also insisted the two men want "nothing" in exchange for the donations, and will not receive a knighthood, peerage or government contracts. Mr Farage has long been a supporter of the cryptocurrency industry, and his party has announced a number of crypto-friendly policies. Last year, Reform said it would slash taxes on crypto assets and set up a "Bitcoin reserve", while the party also accepts donations in cryptocurrency. But on Sunday, Mr Jenrick denied his party was "very pro-cryptocurrency", saying he wanted to see "proper regulation" of the industry. He told the BBC: "At the moment, it's a wild west in many respects. What we want to see is good regulation here in the UK through the FCA (Financial Conduct Authority) so we can protect people." Shadow foreign secretary Tom Tugendhat played down the potential impact of the money, saying it was "an illusion that people can buy their way into public office". Mr Tugendhat also criticised the cryptocurrency industry, telling Sky News: "The crypto industry has got many supporters, I know, including in Iran where they use it to buy weapons from Venezuela; including in Russia where they use it to launder money in order to pay agents around Europe."