Ministers to announce crackdown on foreign political donations

Businesses will have to prove they have a “genuine connection” to the UK before they can donate to political parties under new rules set to be unveiled on Thursday.

The new measures form part of an effort to toughen up rules on political finance designed to prevent foreign money influencing British democracy.

Companies will have to show they are headquartered in the UK, majority owned or controlled by British citizens or electors and have generated enough revenue to cover the donation amid concern “shell companies” could be used to influence UK politics.

Currently, businesses registered in the UK can donate to political parties even if they are owned by foreign nationals or have not generated enough income themselves to cover the donation.

Transparency International UK has previously warned that existing rules expose UK parties to “foreign interference”.

In a 2024 report, the campaign group said £13 million of political donations since 2001 had come from donors alleged or proven to be intermediaries of foreign funds or hidden sources.

Some £10.9 million had come from companies that had not made enough profit to support the donations they had made, the report found.

The Government said recent cases such as those of Nathan Gill and Christine Lee indicated the need for “strong action”.

Gill, Reform UK’s former leader in Wales, was jailed last year after admitting he had taken bribes to make pro-Russian statements in the European Parliament.

Ms Lee, a lawyer, was the subject of an MI5 warning in 2022 accusing her of engaging in “political interference activities” on behalf of the Chinese government.

Communities Secretary Steve Reed said the Bill would “usher in a new era for our democracy – one that protects against foreign interference and empowers young people”.

The Representation of the People Bill, to be introduced to the Commons on Thursday, will also deliver on Labour’s manifesto pledge to lower the voting age to 16.

Lowering the voting age is expected to extend the franchise to 1.7 million more people.

Democracy minister Samantha Dixon said: “I know from speaking to so many passionate young people just how keen they are to get involved in our democracy.

“With democracy taught as part of the national curriculum, millions of young people will have the knowledge and confidence to take part in our democratic process for the first time.”

Electoral intimidation

Other measures expected to feature in the Bill include tougher sentences for people engaging in electoral intimidation.

Alongside the Bill, ministers are expected to announce that a number of English councils will take part in a pilot of “flexible voting options” including setting up polling stations in supermarkets and train stations during May’s local elections.

Shadow local government secretary Sir James Cleverly said: “Labour are hopelessly confused on whether 16-year-olds are adults or not. At the same time as proposing to give them the vote, they are also trying to ban them from perfectly legal activities like buying alcohol-free beer.

“The Conservatives are clear that people become adults at 18 and that is when citizenship rights – such as voting – should be gained.”

Sir James added it was “laughable to hear Labour talk about improving electoral security” given its refusal to put China in the higher tier of the Foreign Influence Registration Scheme.