UK Government launches investigation into foreign money in UK politics

Gill was an MEP for Ukip and the Brexit Party, led by Nigel Farage, before joining Reform UK under Mr Farage, where he served as its leader in Wales.

Mr Reed told MPs that the review would be chaired by former top civil servant Philip Rycroft, who had worked in the Cabinet Office and Department for Exiting the European Union under previous Conservative governments.

Mr Rycroft is expected to report back by March next year.

Digital cryptocurrency donations to political parties and Beijing’s influence would both be “in scope” of the review, Mr Reed told MPs.

The minister told the Commons that “events have shown that we need to consider whether our firewall is enough”.

He said: “Following discussions with ministerial colleagues, I have today ordered an independent review into foreign financial interference in UK politics.

“This will be led by the former permanent secretary Philip Rycroft, reporting both to me as secretary of state responsible for elections and to the minister of state for security (Dan Jarvis) as the chair of the defending democracy task force.

“The facts are clear. A British politician took bribes to further the interests of the Russian regime, a regime which forcefully deported vulnerable Ukrainian children and killed a British citizen on British soil, using a deadly nerve agent.

“This conduct is a stain on our democracy. The independent review will work to remove that stain.”

Shadow local government minister Paul Holmes welcomed the review and wished Mr Rycroft well in his work going forward.

He told MPs: “Protecting the integrity of our democratic system from foreign interference is not a partisan issue. It goes to the heart of public trust in our elections.

“Interference in our elections from foreign actors is something that we must all be vigilant against and I concur fully with what the secretary of state has said about Nathan Gill and join him in his sincere thanks to the CPS (Crown Prosecution Service) and the police.

“Any crime such as this deserves full condemnation from all members of this House.”

‘Fully independent’

Mr Holmes asked: “Will China be included within the scope of the independent review?”

In his reply, Mr Reed said: “The review is fully independent but I would expect China to be fully in scope because of the questions that have been raised about the threats that China poses to national security – well documented.”

He added that cryptocurrency donations would be “in scope” during the review.

“I expect the independent reviewer to take a view on that matter – it’s been raised on all sides of the House previously, but I’m sure he and other members of his party will want to make their views clear to the reviewer as he comes to his conclusions,” Mr Reed said.

Senedd elections

Plaid Cymru MP Ann Davies said: “Following the sentencing of the former Reform Wales leader for taking bribes to peddle pro-Russian propaganda, we welcome this review. Thank you.

“But Plaid Cymru has been calling for action in Westminster and the Senedd for months, only to be repeatedly dismissed by this Labour Government, which even left it to Reform’s own leader to police his party.

“Unfortunately, because of the Government’s delay, there is now no time to implement reforms before the 2026 Senedd elections. Will the Minister set out exactly what steps are being taken to protect Welsh democracy from foreign interference before next year?”

Liberal Democrat spokeswoman for local government Zoe Franklin spoke in support of the review, before urging the Government to “commit to donation caps”.

Mr Reed did not directly respond to this plea, but he said: “It’s very important that the House of Commons stands united against the potential threats to our democracy from hostile foreign state actors.”

Social media

Labour former minister Justin Madders said the “role of social media companies” should be looked at as part of the review, “because there’s no doubt that foreign state actors are absolutely using that as a vehicle to spread disinformation and undermine our democracy”.

Mr Reed said: “It’s an independent review, and the reviewer and his team will be able to look at whatever they think may be problematic relating to the core terms of reference.”

Meanwhile, Reform’s deputy leader, Richard Tice, did not respond to comments about Gill but said his party supported the review.

He said: “The irony of hearing the secretary of state talk about protecting democracy a week after cancelling mayoral elections will not be lost on millions of British voters, but nevertheless, we welcome this review, of course.”

Potential sources

Mr Tice questioned whether influence on the Labour Party would be in scope of the review, with Mr Reed responding that “all potential sources of malign foreign financial interference are in scope”.

Speaking during the statement announcing the review, Plaid Cymru MP Ann Davies said: “Following the sentencing of the former Reform Wales leader for taking bribes to peddle pro-Russian propaganda, we welcome this review. Thank you.

“But Plaid Cymru has been calling for action in Westminster and the Senedd for months, only to be repeatedly dismissed by this Labour Government, which even left it to Reform’s own leader to police his party.

“Unfortunately, because of the Government’s delay, there is now no time to implement reforms before the 2026 Senedd elections. Will the Minister set out exactly what steps are being taken to protect Welsh democracy from foreign interference before next year?”

Secretary of State for Housing, Communities and Local Government, Steve Reed MP, responded: “I thank her for her question. Safeguards are already in place, of course, but the fact that the review will report in March means it will come ahead of the elections.

“Not only members of this House, but voters across the country, will want to know that the safeguards against malign foreign financial interference in the coming elections are sufficiently robust to ensure they are free and fair.”

Hostile state

Responding to news, Welsh Liberal Democrat Westminster Spokesperson David Chadwick MP said: “The actions of former Welsh Reform leader Nathan Gill are utterly reprehensible. Taking money linked to a hostile foreign state to influence democratic debate is a betrayal of public trust and a stain on our democracy. We unequivocally condemn his behaviour and welcome the fact that he has been held to account.

“It is telling that the UK Government is now stepping in after Reform UK failed to launch a serious internal investigation into the conduct of their former Welsh leader. When parties fail to take responsibility for their own standards, independent scrutiny is essential to protect our democracy.

“This must be a wake-up call. With future Senedd elections ahead, stronger safeguards are needed to protect Welsh democracy from foreign interference, illicit funding and opaque donations.

“The Welsh Liberal Democrats will continue to push for tougher transparency rules and stronger enforcement of political finance laws to keep overseas money out of Welsh politics.”

Disinformation 

Downing Street said Gill’s case was not the only reason for the review, also pointing to interference by alleged Chinese spy Christine Lee as among the actions in recent years by “foreign threat actors” which had prompted it.

The review will not reinterrogate suggestions of interference in the Brexit referendum, No 10 said, and is not aimed at any one particular political party, the Prime Minister’s spokesman stressed.

Speaking at the Foreign Affairs Committee, Yvette Cooper meanwhile warned of disinformation disseminated internationally “on an industrial scale” by Russian-backed groups.

The Foreign Secretary told MPs on the committee that foreign financial interference has been “happening in countries across the world”, after the announcement in the Commons.