Political Party Finance and the Electoral Commission

Lord Jay of Ewelme Excerpts

Thursday 2nd July 2026 Lords Chamber

[Lord Jay of Ewelme (CB)]

My Lords, I have learned much from the debate so far, and we will learn a lot from the speeches still to come. It is a particular pleasure to speak after the noble Earl, Lord Kinnoull. I am conscious that I am somewhat outside my comfort zone in speaking today, and so I will speak principally as a voter. I vote assiduously in local elections; I used to vote assiduously in European parliamentary elections, but alas no more, and I would vote assiduously in general elections were I allowed to do so. I hope the Minister will tell us what plans the Government have to enable Peers to vote in general elections in future.

The need to tighten up the present arrangements for political party financing is clear, as the noble Earl, Lord Kinnoull, has said. In 2020, when Boris Johnson was Prime Minister, the Law Commission reported:

“The current laws governing elections should be rationalised into a single, consistent legislative framework”.

In April 2026, under the present Prime Minister, the Rycroft review recommended that there should be an annual cap on donations from British donors living abroad, a moratorium on donations in crypto assets, and that political parties’ ability to monitor donations and deal with the threat of foreign financial interference should be strengthened. That is all very sensible, and I am glad that some of the Rycroft report’s recommendations will be included in amendments to the Representation of the People Bill. Can the Minister update us on the progress of that important Bill and on proposals to strengthen the Electoral Commission, whose role in monitoring and enforcing the present system is crucial?

It strikes me that, as the noble Lord, Lord Blunkett, has said, this is all becoming quite urgent. The noble Earl, Lord Kinnoull, has rightly spoken of the importance of trust in our political system and in our political parties. The Electoral Commission’s annual public opinion tracker shows that 14% of the British public thinks that political party financing is transparent. Without transparency there is no trust, and without trust we will see the rise of parties on the extremes and a dangerous lack of public confidence in our democracy, so we need reforms soon.

There are alternative ways of funding political parties. France, Germany and Spain all permit public funding under certain conditions, and to do so here would not be especially innovative. There is already Short money and the policy development grants scheme, and there is free TV airtime for party-political broadcasts. None the less, I know the outcry that further public funding of political parties might cause. One can imagine the response of the Daily Mail if it were proposed by the Labour Party, and of the Daily Mirror if it were proposed by the Conservative Party. But if the choice is between the continuation of the present system, with all its failings, on the one hand, and public funding effectively monitored by the Electoral Commission on the other, I would not, as a taxpayer, self-evidently choose the former.

I therefore hope that all three political parties, in responding to this debate, will make clear their absolute commitment to reformed and properly monitored political party funding arrangements that will still arguments for extended public funding.