Political Parties: Donations from Abroad

Lord Khan of Burnley Excerpts

Wednesday 22nd January 2025 Lords Chamber

[Lord Dubs]

To ask His Majesty’s Government what plans they have to control or limit donations from abroad to British political parties or pressure groups.

[The Parliamentary Under-Secretary of State, Ministry of Housing, Communities and Local Government (Lord Khan of Burnley) (Lab)]

My Lords, as set out on 15 January by my noble friend Lady Taylor of Stevenage, the Government committed in our manifest to protect democracy by strengthening the rules around donations to political parties. Foreign money has no place in our elections and the rules already provide clear safeguards against foreign interference. We are considering changes that will help further protect our system from such risks. Details of these proposals will be brought forward in due course.

[Lord Dubs (Lab)]

My Lords, the Minister will not be aware, but I wanted to donate to the Democratic campaign on the internet. I could not do so, not because I am living in this country but because I do not have an American passport. I think we have to tighten up our arrangements a bit. Foreign money is undermining our democracy, whether it is donations to particular parties or, more insidiously, to pressure group. There are reports in the papers that an environmental pressure group is going to be funded from the States in order to undermine our attitude to climate change. We need to act quickly.

[Lord Khan of Burnley (Lab)]

My Lords, my noble friend makes an excellent point about individuals who are not eligible to vote here. There are rules that govern individuals and organisations that campaign in elections but are not standing in political parties. While it is clear that foreign donations to political parties are not permitted, the Government recognise the risks posed by malign actors who seek to interfere with and undermine our democratic process. My final point is that the rules exist to give the public more confidence in the way third parties interact with the political system. They ensure that campaigning in a transparent manner will prevent any individual, company or organisation exerting undue influence on our elections.

[Lord Fowler (CB)]

I agree entirely with the noble Lord, Lord Dubs, but is there not a case for a review that goes rather wider than just political contributions from overseas? We have the issue, for example, of whether there should be a cap on all contributions made. Surely, above all, we need a system that is entirely honest and seen as such around the world. Compared with some of the things that are happening now, that would not be a bad example.

--- Later in debate ---

[Lord Khan of Burnley (Lab)]

My Lords, the noble Lord makes an excellent point. A cap on donations is not a current priority, but strengthening the rules around donations is. By law, it is the responsibility of political parties to take reasonable steps to verify the identity of a donor and whether they are permissible. We will take any necessary steps to ensure that those requirements are tightened and abided by.

[Lord Maude of Horsham (Con)]

My Lords, will the Minister give an undertaking that his Government will follow the practice in the latter part of the last Labour Government, where Jack Straw, who had responsibility for these matters, was absolutely meticulous in ensuring that among the major established parties there was consensus on any changes that were undertaken?

[Lord Khan of Burnley (Lab)]

Any proposals that we bring forward are likely to require legislation, and although the Government have not included this in the timetable for this Session, we have promised to do it in our manifesto. I can assure all noble Lords that, once we have developed our proposals, we will inform Parliament and consult widely.

[Lord Wallace of Saltaire (LD)]

My Lords, I am very happy to find that the Conservative Party has rediscovered the idea of consensus now that it is in opposition. I am not sure we want to ban all foreign donations, particularly those from pressure groups and think tanks, but transparency is essential. We need to know who is funding these bodies. Will the Government look again at the need for transparency in reporting where funds come from for all think tanks—left wing, right wing or whatever—that are involved in attempting to influence the political process?

[Lord Khan of Burnley (Lab)]

I think it always good to have consensus across the House and in politics. On the noble Lord’s point about transparency, as stated, we are looking at strengthening the rules around donations. To do so, we will look at all the evidence and in due course we will set out our proposals.

[Baroness Hayter of Kentish Town (Lab)]

My Lords, I raised before the issue of permitted donors who live abroad being able to give to political parties. The last Government went ahead with that, despite opposition from this side. Similarly, they brought in ID for voting against our recommendations. I welcome the rather belated view that we should have a negotiation, and perhaps the Opposition would like to say that, this time, they will co-operate this time and not try to do something by themselves.

[Lord Khan of Burnley (Lab)]

My noble friend makes an excellent point. She is correct that overseas voters have the right to participate in UK parliamentary elections, and this includes the right to donate to parties or candidates they support. However, foreign money is not permitted, and it is a criminal offence to facilitate an impermissible donation. Those rules apply to voters abroad as well.

[Baroness Scott of Bybrook (Con)]

My Lords, a Question was asked on this matter on the 15 January 2025, answered by the noble Baroness, Lady Taylor of Stevenage. Can the Minister provide the House with more detail on His Majesty’s Government’s review of all matters relating to electoral donations? In particular, can he confirm that it will address the matter of public bodies disclosing information to political parties, and tell the House when we can expect the review to conclude?

[Lord Khan of Burnley (Lab)]

The noble Baroness mentioned a similar Question that was previously asked. When it comes to foreign influence, additional controls are being implemented through the foreign influence registration scheme, which will require those being directed by a foreign power to carry out, or arrange for others to carry out, political influence activities to register with the scheme. I will take her concern forward and ensure that, when we have our wider consultation and bring forward proposals, which are not yet finalised, we will look at this in legislation and policy.

[Lord Rogan (UUP)]

My Lords, aside from its historic support for terrorism, murder and mayhem, Sinn Féin/IRA is unique in the United Kingdom political system because it receives much of its funding from the Irish Republic and the United States. Over the past five years, Friends of Sinn Féin, the party’s fundraising arm in America, banked more than $2 million. Although laws in the Republic of Ireland prohibit money raised abroad to be sent there, Friends of Sinn Féin can legally send money to Northern Ireland. Can the Minister tell me when His Majesty’s Government intend to close this loophole, which would not be acceptable in any other part of the United Kingdom?

[Lord Khan of Burnley]

My Lords, I am sure the noble Lord will understand that I cannot comment on individual cases. I agree with him that political parties registered in Northern Ireland can accept donations from Irish sources, such as Irish companies that meet the conditions. Allowing Irish donations to the Northern Ireland parties recognises the special place of Ireland in the political life and culture of Northern Ireland and is consistent with the principles set out in the Belfast/Good Friday agreement. However, Irish donations are subject to the same scrutiny by the Electoral Commission as donations from any other permissible donor.

[Baroness Foster of Aghadrumsee (Non-Afl)]

My Lords, last Wednesday, in response to the noble Lord, Lord Blunkett, the noble Baroness, Lady Taylor of Stevenage, said:

“Government take the threat posed by disinformation and foreign actors interfering in our democratic processes very seriously”.—[Official Report, 15/1/25; col. 1123.]


We have already heard from the noble Lord, Lord Rogan, about the amount of money which comes from America into Sinn Féin’s coffers, but that is not the only issue. Its social media accounts are run by a company in Serbia. Will the Minister look at that as well?

[Lord Khan of Burnley]

The noble Baroness makes an interesting point. My direct answer would be that we continue to work with the Department for Science, Innovation and Technology and the Defending Democracy Taskforce to mitigate the risk that disinformation and misinformation and AI-driven election interference pose to the UK’s democratic processes. On social media, there are already robust donations and third-party campaigner spending rules in place. The Government remain alert to any technological or other relevant changes in the electoral campaign landscape.

[Lord Rennard (LD)]

My Lords, for the last 25 years, political parties in this country have been legally obliged to declare the source and scale of all their donations above a very modest level. Why should the same rules not apply to political pressure groups trying to influence the political process?

[Lord Khan of Burnley (Lab)]

My Lords, there are already robust spending and donations rules in place for third-party campaigners, which pressure groups would fall under. These are individuals or organisations that campaign in elections while not standing as political parties or candidates. Further rules exist in relation to transparency around those seeking to influence UK policy. The lobbying Act 2014 ensures there is transparency around meetings between Ministers and ministerial groups. The regulation of all-party parliamentary groups is a matter for Parliament.