Representation of the People Bill (Seventh sitting)

Lewis Cocking Excerpts

Committee stage
Tuesday 14th April 2026 Public Bill Committees

[Dr Ellie Chowns (North Herefordshire) (Green)]

It is a pleasure to speak under your chairship, Sir Desmond. In clause 60, we are considering company donations in UK politics, and I ask the Minister to consider outright banning them, as happens, for example, in France and Canada. There is no real reason for companies to be permitted to make donations, particularly when we are concerned, as in this Bill, with ensuring that company donations are not a mechanism for channelling funds from outside the country into British politics. Why not make the situation clear and allow only individuals, whose connection to the country can be clearly tested, to donate? Company donations have been nearly half the size of individual donations in UK politics in recent years. These are really significant sums.

[Lewis Cocking (Broxbourne) (Con)]

The hon. Member is speaking about company donations. I am not saying I agree with this, but does she feel that the same logic should apply to trade union donations? If she feels that companies cannot donate, does she still feel that trade unions can?

[Dr Chowns]

I consider companies and trade unions to be completely different entities. One is a profit-making organisation, and the other is a membership association designed to represent the interests of its members. The two are not parallel, and I am completely fine with trade unions making donations.

Company donations have a huge influence on our politics. There is also a tax advantage for companies; there is effectively a taxpayer subsidy to them, and the advantage can be up to about 40% for companies making donations from company funds, compared with individual funds. I would therefore like to hear why the Minister thinks it is important to retain the ability for companies to make donations and does not want to follow the example of France and Canada in stopping such donations. Individuals can still make donations.

On a couple of specific points, the hon. Member for Hazel Grove referenced the fact that there is a clear problem in the Bill as currently drafted. A loophole permits companies to give donations up to the limit multiple times, both to a party and potentially to every single one of its candidates. Surely the limit should be set so that it reflects the total value of donations to all recipients. That has been argued for by the Electoral Commission and in Philip Rycroft’s recommendation 4, and it is also covered by amendments 36 and 37 in the name of the hon. Member for Warwick and Leamington.

It is also clear that the test should be post-tax profit, not revenue. It is far too easy for companies to inflate their revenues by engaging in what is sometimes called transfer pricing in other sectors, effectively enabling them to completely bypass the intended restrictions. Surely it is in the spirit of the Bill, and should therefore be put into the letter of it, that the test should be post-tax profit, not revenue. If we are going to permit company donations, we should be really clear that they are derived from profit made in-country, because using the revenue test provides a huge loophole. Again, that is called for in Philip Rycroft’s recommendation 2, and by the Electoral Commission and many others, so I very much hope the Minister will respond positively.

Amendments 34 and 35, in the name of the hon. Member for Warwick and Leamington, would make the donor criminally liable. The Minister responded by saying that the onus should all be on the recipient of those donations, but that is not how the law operates in other areas when it is broken: the commissioners of the offence, as well as the recipient of the funding, are guilty. So I ask the Minister to think again. If we are talking about large companies making huge donations, they arguably have greater capacity, and certainly just as much responsibility, as the recipient to check that they are operating within the law. I refer the Minister to my comments on a previous clause about establishing a donor register, which would enable us to deal with these issues and involve the Electoral Commission in ensuring that these checks are in place.

I will briefly touch on new clause 13, in the name of the hon. Member for North East Hertfordshire (Chris Hinchliff), new clause 32, in the name of the hon. Member for Poole (Neil Duncan-Jordan), and new clause 52, in the name of the hon. Member for Leeds East (Richard Burgon). They all recognise the widespread concern in UK politics, and among all of us to some extent, about how company donations risk twisting, and in some cases have twisted, our politics. Each of those Members has tabled a new clause seeking to ban donations from particular categories of company donor. The first seeks to exclude property development and construction undertakings, the second seeks to exclude those who have had public contracts at any time in the last 10 years, and the third seeks to exclude any companies involved in oil and gas extraction.

I have huge sympathy for the arguments and for the broad thrust of those new clauses. I am not necessarily convinced that, in their current form, they are ready to be incorporated in the Bill, but they highlight a key concern. For example, there has been widespread concern about cases where large donations by a property developer were associated with planning decisions under a previous Government that went in favour of that property developer. There have also been serious concerns about the revolving door between the Government and the legislature, and profit-making companies. I would really like to hear the Minister’s response to those three new clauses tabled by Labour Members, which highlight concerns about the influence of particular groups of companies on our politics.

However, the issues I really hope the Minister will respond to are, first, stopping all company donations, because people who want to make donations can still make them as individuals; secondly, adopting the post-tax profits test, rather than the revenue test; and, finally, ensuring that the donations limit applies to the total value of donations, not just single donations.