Political Donations

Debate between Alex Sobel and Irene Campbell

Monday 31st March 2025 Westminster Hall

[Irene Campbell]

I fully agree with the statement the hon. Member has just made.

The Electoral Commission, the independent regulator for the rules, has said that, at present, donations can be made using funding from otherwise impermissible sources, including from overseas. There are variable monetary penalties from the Electoral Commission for breaking the rules, which are outlined in the Political Parties, Elections and Referendums Act. These can be between £250 and £20,000, depending on the severity of the breach, which is another area that the petition seeks to address.

There are many electoral reform recommendations from independent bodies that address some of the concerns in this petition. In relation to fines for breaking the rules, the 2021 report by the Committee on Standards in Public Life recommended reviewing the maximum fines that can be issued for breaking electoral rules, saying that the maximum fine the Electoral Commission may impose

“should be increased to 4% of a campaign’s total spend or £500,000, whichever is higher”.

The Electoral Commission supports that, saying in 2020:

“The Scottish Parliament recently raised the maximum fine to £500,000 for Scottish referendums, and we believe this would be a reasonable benchmark for the maximum fine in relation to other parts of the UK’s political finance regulations”.

Additionally, the Committee on Standards in Public Life recommends that political parties introduce caps on donations. It said:

“A cap of £10,000 should be placed on donations to a political party or regulated donee from any individual or organisation in any year.”

Similarly, Australia’s new electoral reform Act imposed caps on political donations and electoral expenditure, after recent elections where a multimillionaire donated 117 million Australian dollars to a political party.

Both bodies have also addressed the loopholes that allow possible donations from foreign parties. In particular, the Electoral Commission said last year that parties and campaigners should

“only accept donations from companies that have made enough money in the UK to fund…their donation.”

[Alex Sobel (Leeds Central and Headingley) (Lab/Co-op)]

A 2020 report from Parliament’s Intelligence and Security Committee found:

“Several members of the Russian elite who are closely linked to Putin are identified as being involved with charitable and/or political organisations in the UK, having donated to political parties”.

It is really important that we close these loopholes so that we are not at risk of Russian interference.

[Irene Campbell]

I agree with my hon. Friend. To further close loopholes that allow foreign interference, the Committee on Standards in Public Life added that the Government

“should legislate to ban foreign organisations or individuals from buying campaign advertising in the UK.”

As public office holders, we are all beholden to the seven principles of public life, known as the Nolan principles: selflessness, integrity, objectivity, accountability, openness, honesty and leadership. To dedicate ourselves to these principles, we must ensure that there is no question about the transparency and lawfulness of the donations that we receive. Any rules regarding electoral donations must reflect and represent those principles, which we hold dear.

The Labour manifesto promised to

“protect democracy by strengthening the rules around donations”.

In December, the Prime Minister’s spokesman confirmed that the Government are committed to

“strengthening the rules around donations to political parties.”

Regarding the commitment to reviewing the rules on political donations, he said there will be a

“relevant update in due course.”

In her response to the debate in March, the Minister agreed that foreign money has no place in the UK electoral system, and that the current rules do not provide strong safeguards. She also made clear the crucial role that the Electoral Commission has, and the possibility that its roles and responsibilities may change.

There is much evidence and many policy interventions to be considered before the Government’s approach to electoral reform is published. However, now is the time for robust legislation that works. I look forward to hearing the Minister’s response, and the contributions of hon. Members from both sides of the House.