Labour's manifesto includes pledges to reform UK political donation laws, aiming to impose stricter regulations, such as donation caps and further restrictions on foreign contributions.

While these changes are under consideration, they are not expected to be proposed until 2026.

The speculation around Elon Musk potentially donating $100 million to Nigel Farage's Reform UK party highlights the urgency for reform.

Under current legislation, as dictated by the Political Parties, Elections and Referendums Act 2000, donations over £500 to political parties must originate from 'permissible sources.' These include UK-registered voters, companies, trade unions, limited liability partnerships (LLPs), and UK-based unincorporated associations.

Musk, who is reportedly eligible for UK citizenship through his British grandmother, might make donations through the UK arm of his company, X, or obtain citizenship.

Historically, Labour has criticized the Conservative-led reform in 2022 that allowed overseas voters absent from the UK for over 15 years to vote and donate, warning of potential undue influence by individuals with tenuous UK ties and potential hostility to UK interests.

Labour has also urged scrutiny of Conservative donations from shell companies and defunct firms.

Currently, there is no limit on the amount donors can contribute, but campaigners have long advocated for caps.

Notable donations include Labour's financial support from Gary Lubner and Dale Vince, while the Conservatives received considerable donations from Frank Hester and Mohamed Mansour.

Comparatively, political fundraising in the US, such as Elon Musk's Super PAC spending to support Donald Trump, dwarfs that of the UK, posing concerns about potential billionaire influence in UK politics.