Donations to Political Parties

Baroness Scott of Bybrook Excerpts

Thursday 12th February 2026 Grand Committee

[Baroness Scott of Bybrook (Con)]

My Lords, I am grateful to the noble Lord, Lord Sikka, for bringing forward this debate but I cannot, in any way, agree with his solutions, either the ideas for all-party use of a donations pot—I am not sure how big that pot would be—or the endgame of state funding.

The statutory framework governing donations, principally the Political Parties, Elections and Referendums Act 2000 and the Representation of the People Act 1983, were designed to prevent foreign money distorting British politics. Those principles remain sound. But the landscape has evolved: new financial vehicles, shell companies, unincorporated associations and cryptocurrencies present risks that were understandably not explicitly legislated for a generation ago. This is a fact that hostile actors increasingly seek to exploit.

We recognise that the Government’s July 2025 elections strategy acknowledged that the current framework is no longer sufficient. It proposed stronger checks on donations, greater transparency for gifts and limits on company donations etc. We also note the announcement the independent review into electoral resilience following troubling allegations of foreign interference, and the Secretary of State’s commitment to examine illicit funding streams, including cryptocurrencies. We support the objective of protecting our democracy from hostile actors.

The previous Conservative Government took steps in this direction, strengthening national security legislation and committing to improved information-sharing between agencies and political parties. This was precisely because of the real and evolving threat of foreign interference at the time.

However, strategies and reviews are not substitutes for legislation. The electoral strategy was published seven months ago, and the Representation of the People Bill is only just being laid before Parliament today. There has been little consultation with political parties as these things are starting to be put forward; I do not believe that that has ever happened before. At a time when state-backed interference, opaque funding routes and emerging financial technologies present genuine risks, delays here will have consequences. How will the Government ensure, in particular through the Bill, that parties are properly supported, including through proportionate and lawful information sharing if they are to undertake enhanced checks on donors? What specific safeguards will be introduced to ensure that foreign money, whether channelled through companies or digital assets, cannot penetrate our political system?

The safety and integrity of our democracy should never be partisan; nor can reform be endlessly deferred. If the Government believe that the existing framework is no longer robust, as they say they have done for nearly two years, it is now time to move from review to action.