Labour hosted a drinks reception at 10 Downing Street on Tuesday evening for major party donors, including business leaders and philanthropists associated with its Rose Network. The event took place amid growing pressure on Prime Minister Andy Burnham to introduce new limits on political donations, particularly in response to a recent influx of funds to the Reform UK party.

Over a 48-hour period, Reform UK received £72 million from two cryptocurrency billionaires, Ben Delo and Christopher Harborne, prompting debates over the influence of wealthy individuals in UK politics. Labour officials said the reception had been scheduled prior to the announcement of these donations. In reaction to Reform’s fundraising, Labour ramped up its own member-driven fundraising efforts over the weekend, with party chair Bridget Phillipson sending out two emails urging supporters to donate. Phillipson described Reform’s financial backing as “record-breaking” and called on Labour members to unite in ensuring the party remains well-resourced for upcoming elections.

At the Trades Union Congress (TUC) annual gathering in Brighton this week, union leaders expressed concern about large political donations but stopped short of endorsing a fixed cap on contributions. The general secretaries were divided on whether unions should support a specific limit on individual donors while preserving union funding, which the TUC described as the “cleanest money in politics” since it comes from workers’ subscriptions. Paul Nowak, the TUC’s general secretary, characterized the donations to Reform as a “blatant attempt to effect a corporate takeover of our politics” and said the development should raise alarm.

Despite tensions over funding, union leaders conveyed a warmer tone towards the Labour leadership under Burnham. Sharon Graham, general secretary of Unite union, who had previously threatened to sever ties with Labour, said Burnham’s leadership had earned the party “a second hearing.” Several union representatives reported more constructive engagement with the prime minister compared with the previous leadership under Keir Starmer. Nonetheless, union officials cautioned that critical challenges remain, including the upcoming budget.

Financially, Labour faces significant pressures following losses in several recent byelections, including the Greater Manchester mayoralty. Official accounts filed with the Electoral Commission reveal the party has lost over 20% of its membership within a year, though internal sources indicate membership has risen recently amid speculation over a possible leadership contest and since Burnham assumed office. Donations to Labour have decreased by around 84% since the election year, contributing to a £2.6 million deficit reported last year. One union leader noted the party remains “millions” in debt.

However, Labour’s outgoing general secretary, Hollie Ridley, told the party’s national executive committee that the financial situation is stable. She said disciplined spending and increased fundraising have placed Labour in its strongest financial position since the last general election.