The review of funding political parties

Donations from organisations - how much can an organisation give?

Companies and trade unions active and registered in the UK can donate money to political parties but how much can they give?

Business donations

If a public listed company wants to give money to a political party the company has to ask its shareholders for their approval. Other companies are free to donate according to their own internal rules, as long as the companies are active and registered in the UK.

Historically the Conservative Party has received many donations from companies. For example, in 1981, it received between 55 and 60% of its income from company donations, according to Professor Vernon Bogdanor. This source of income has mainly disappeared, according to Andrew Tyrie MP in his recent paper, Clean Politics. He says that corporate donors have disappeared for two reasons: firstly, the transparency requirements, and secondly, a growth in shareholder activism.

Back to top

Trade Union donations

Trade Unions historically have given money to the Labour Party. A large number of trade unions are affiliated to the Labour Party, and the link between the party and the unions is rooted in the party's history. Again, according to Professor Vernon Bogdanor, just over 30 years ago the unions contributed around 92% of the Party's central income. The current proportion is reported as being around 25%.

Back to top

Latest data

To see the latest information available, click on this link to take you to the register of donations to political parties on the Electoral Commission's website.

Back to top

We want your views

Should contributions from organisations such as companies and trade unions be allowed?


Should these be treated differently from donations from individuals? If so, why?


Are there any other points you’d like to raise on this issue?


You are encouraged to provide your views on these questions to us by 31 July 2006.

Back to top

Page last updated: 21 Jul 2006