Political Finance Rules

Neil Duncan-Jordan Excerpts

Thursday 6th March 2025 Commons Chamber

[Neil Duncan-Jordan (Poole) (Lab)]

I thank my fellow Dorset resident, my hon. Friend the Member for South Dorset (Lloyd Hatton), for securing this important debate. It goes to the heart of the concern that the public have, namely that economic dominance leads to political influence. Money is used to influence politics, and politics is then used to enable those people to make more money through changes in laws or regulations. This is the issue that worries the public. We also know that civic participation diminishes if people feel that they have no influence compared to those with large amounts of money.

Public trust in our political system is at an all-time low. That flows in part from a sense that politicians are unable properly to represent those who elect them, that money in our politics exerts undue influence that is often obscured from public view, and that those who break the rules that do exist are not adequately punished. Nearly 60% of the public think that funding of political parties is not transparent, and only 30% think that political parties that break the rules will face any action. That is why Labour�s manifesto made the welcome pledge to

�establish a new independent Ethics and Integrity Commission, with its own independent Chair, to ensure probity in government.�

The commission must be empowered to challenge the corrupting influence of not only the developer lobby but other big money donors, including those from the oil and gas industry. We should also close loopholes to ensure that overseas trips for parliamentarians are funded only by trusted sources, and publish clearer guidance on the acceptance of gifts and hospitality.

It is worrying, too, that UK political parties are relying increasingly on a small number of extremely wealthy people to bankroll their election campaigns. The last Government increased national campaign spending limits from �19 million to �34 million, which has intensified the demand for donations across all our political parties. As the hon. Member for Dewsbury and Batley (Iqbal Mohamed) said earlier, Transparency International UK claims that between 2001 and May 2024, �42 million came from donors alleged or proved to have been involved in corruption, fraud or money laundering. Political parties should therefore be required by law to identify the true source of funds as part of a risk-based approach to donations, and a donation from a company should not be allowed to exceed its net profits generated in the UK within the preceding two years. A UK-registered company is permitted to make donations using money raised overseas, which is why political parties should be required to conduct checks on donations to assess and manage their risks.

There are real concerns about unincorporated associations. Such associations are not required to check that those who donate to them are permissible, which means that they could legitimately make donations using funding from otherwise impermissible sources, including from overseas. As other Members have said, the Electoral Commission should therefore be given powers to investigate candidates� compliance with the rules and to impose sanctions.

Finally, banning companies that win public contracts from making political donations would end the potential conflict of interests that this creates and the perception that political friends have received political favours.