Green energy tycoon calls for ban on political donations despite handing £5m to Labour

When questioned on why he donated to Labour, Vince claimed he was trying to “bridge the funding gap” against the Conservatives to make it a fair contest.

The tycoon’s remarks come after rumours spread a few weeks ago alleged that Elon Musk could donate up to £80million to Reform UK.

This has caused concern about the influence of foreign money on British politics.

In December, Labour came under pressure to implement new rules limiting the amount foreign nationals can donate to political parties through UK-based companies.

The Leader of the House of Commons Lucy Powell said these reforms would be part of a more broad plan to tighten rules around political donations.

Speaking to Sky News, she said while there were no immediate plans, “we do have a manifesto commitment to look more broadly at our elections regime in this country”.

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Powell indicated the move could feature in an Elections Bill planned for the next parliamentary session in July.

Labour’s manifesto pledged to “protect democracy by strengthening the rules around donations to political parties”.

An anonymous Labour donor echoed Vince’s views that the political donations system should be reformed, saying: “In my personal view, there’s too much money in politics and I’m not just talking about the UK.

“It has to be regulated, not sure if a total ban but clearly something has to be done – some guardrails around how much is going into the political pot. It’s getting too much.”

While foreign donations are not allowed in UK politics, money can be gifted through a UK-registered company, according to Electoral Commission rules.

This led to speculation that Musk could donate to Farage’s party through the UK businesses of Tesla or X.

Traditionally, Labour is given donations by trade unions while the Tories are bankrolled by ultra-rich City donors.

However, in the lead-up to the general election, Labour raised more than all other parties combined, with a third of the funds coming from 11 donors.

Vince was one of these donors, handing over almost £5.5million to Labour between April 2022 and May 2024.

The tycoon’s influence has been under scrutiny lately after Ed Miliband approved an application to build a solar farm in Lincolnshire put forward by Vince, however, he claims he had no influence within the party.