Political Parties: Funding

Lord Rennard Excerpts

Wednesday 15th January 2025 Lords Chamber

[Baroness Taylor of Stevenage (Lab)]

My Lords, the law is already clear that accepting or facilitating foreign campaign donations is illegal. Only those with a legitimate interest in UK electoral events can donate to candidates or political parties. Donations from individuals not on the electoral register are not permitted and strict rules are in place to make sure that foreign money is prohibited from entering through proxy donors, providing a safeguard against impermissible donations by the back door. We are looking at ways to make this even stronger. It is an offence to attempt to evade those rules on donations.

[Lord Rennard (LD)]

My Lords, does the Minister accept that there can be problems with very large donations to political parties, whether they may originate from abroad or be clearly from within the UK, and that the only way to prevent undue influence on political parties is to ban company donations and have a sensible cap on the size of all other donations? Does she then agree that political parties would still be able to campaign effectively if existing public funding was redistributed—for example, from the £100 million spent by the Government in the last two general elections on distributing candidates’ election addresses—and given to the parties to spend as they saw fit?

[Baroness Taylor of Stevenage (Lab)]

I take it that that was a question about a cap on donations. That is not a current priority for the Government, but strengthening the rules around donations really is. Political parties play a vital role in our democracy, and it is important that they are able to fundraise effectively and communicate with the electorate as a very important part of our process. By law, it is the responsibility of political parties to take all reasonable steps to verify their donors and whether they are permissible. We will take necessary steps to ensure that those requirements are tightened and stuck to.