Burnham drops support for political funding cap aimed at curbing mega-donors

PM said he would set bar at £500k, but trade unions say funding reforms could undermine their ability to donate to Labour

Andy Burnham has dropped his support for capping political donations, causing anger among activists and Labour MPs who have long campaigned for change to the way parties are funded.

The prime minister has decided not to back amendments to the elections bill, which would cap the amount a person or an organisation can give in a single donation, according to government sources.