Tighten the rules on political donations

We want the government to:
Remove loopholes that allow wealthy foreign individuals to make donations into UK political parties (e.g. by funnelling through UK registered companies).

Cap all donations to a reasonable amount.

Review limits on the fines that can be levied for breaking the rules

The UK has a strong political finance framework which makes it clear that only those with a legitimate interest in UK elections can make political donations. Foreign donations are not permitted, with the exception of donations from certain Irish sources to Northern Irish political parties. This recognises the special place of Ireland in the political life and culture of Northern Ireland and is consistent with the principles set out in the Belfast (Good Friday) Agreement. Accepting or facilitating an illegitimate foreign donation is rightly a criminal offence.

While it is clear that foreign donations to political parties and other campaigners are illegal, the Government recognises the continued risk posed by actors who seek to interfere with and undermine our democratic processes. We do not think the current rules are strong enough. That is why we made the commitment in our manifesto to strengthen the rules around donations to political parties.

There are currently no plans to put a cap on donations. Political parties play a vital role in our democracy, and it is important that they are able to fundraise effectively and communicate with the electorate. By law it is already the responsibility of political parties to take all reasonable steps to verify the identity of a donor and whether they are permissible. The Government will take any necessary steps to ensure those requirements are tightened and abided by.

The Electoral Commission plays an important role in the UK’s democratic system as the regulator of political finance. Robust regulation and enforcement of political finance rules are crucial for promoting public confidence in democratic processes, ensuring their integrity, and combatting the threat of foreign interference. As part of delivering on our commitment to strengthen the rules around political donations, we are also reviewing whether any changes are required to the role and powers of the regulator to ensure enforcement provides a clear deterrent against breaking the law whilst remaining proportionate.

The Government is currently developing proposals to give effect to these commitments and will introduce legislative measures in due course. In doing so, we are carefully considering evidence from a range of stakeholders, including recommendations from parliamentary committees and the Electoral Commission.

Ministry of Housing, Communities & Local Government