Samantha Dixon Portrait The Parliamentary Under-Secretary of State for Housing, Communities and Local Government (Samantha Dixon)
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It is a pleasure to serve under your chairship, Dame Siobhain. I will speak to clauses 70 to 74 first, and we will come to the amendments tabled by the Liberal Democrats later.

Harassment and intimidation of voters, electoral staff and campaigners, both online and in person, is unacceptable and has a profoundly detrimental impact on the UK’s democratic processes. We know that electoral staff faced unacceptable abuse and intimidation during the 2024 general election. That is why we are extending the scope of the disqualification order to ensure that electoral staff are provided with the same protection as candidates, campaigners and elective office holders.

Clause 70 will enhance the disqualification order’s ability to protect those who participate in public life, and those who play a crucial part in the administration and delivery of elections. It will also act as a deterrent, signalling that intimidatory behaviour is a serious matter that must not be allowed to damage our democracy.

It is clear that more must be done to tackle the abuse and intimidation directed at those who participate in elections and political debate. While disqualification orders are a key part of tackling the unacceptable harassment and intimidation of those in public life, they do nothing to prevent those who have no interest in standing as a candidate from engaging in intimidatory or abusive behaviour. Clause 71 introduces a new statutory aggravating factor, which will empower courts to apply an uplift when passing sentence for an offence linked to intimidation. This is where the offender was motivated by hostility towards candidates, campaigners, elective office holders and electoral officials and their staff.

Clause 72 introduces this new statutory aggravating factor in Northern Ireland, and amends the location of the pre-existing Scottish aggravating factor. This is a significant new deterrent for those who seek to damage the UK’s democracy or intimidate those who uphold it, and will ensure that anyone who does so will be subject to appropriate criminal justice penalties.

Let us turn to clause 73. Disqualification orders were introduced in the Elections Act 2022, to be imposed on offenders throughout the UK who commit crimes of hostility against electoral candidates, campaigners and officer holders. Scotland introduced Scottish disqualification orders in the Scottish Elections (Representation and Reform) Act 2025, which gave similar protection to a fourth category: Scottish electoral officials. The Bill extends the scope of the disqualification order in the Elections Act 2022 to protect electoral officials throughout the UK, but Scottish electoral officials will continue to be covered by the Scottish legislation.

To ensure that there is a fully reciprocal relationship between disqualification orders in Scotland and the rest of the UK, the Bill also applies the effect of Scottish disqualification orders to relevant elective offices throughout the UK. That ensures that if someone is disqualified from standing for or holding office in Scotland, they will also be unable to stand for or hold office in the rest of the UK, and vice versa.

That will ensure a consistent approach throughout the UK for intimidatory behaviour towards those who participate in public life. If a person is convicted of specific criminal offences, motivated by hostility towards candidates, future candidates, substitutes, nominees, campaigners, holders of relevant elective office or electoral officials, they will be prohibited from standing for or holding office for five years across the UK. Clause 74 builds on the measures introduced in clause73, and makes amendments to various pieces of legislation to apply the Scottish disqualification order to relevant elected offices across the UK.

Paul Holmes Portrait Paul Holmes (Hamble Valley) (Con)
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Good morning, Dame Siobhain; it is a pleasure to serve under your chairmanship. Thank you for the information about a photographer being present; had I known, I would have had a shave this morning. Normally, we can only be heard in audio and, as my mother says, I have a face that only a mother could love.

We welcome the Minister outlining the parameters of the clauses, and welcome the fact that the Government are taking the safety of election staff seriously. They are public facing, and work with us on an equal basis to ensure that democracy works. We therefore strongly welcome the fact that the Government are extending these protections to election staff. Officer teams across the whole country are very busy at the moment; we know that from our various involvements with election returning officers, and the election staff who are making sure that everybody who is entitled to vote can do so via different methods.

When an officer reads out the results on television, and faces an inquiry from somebody who they do not satisfy, that can spur on the kind of attacks and threats that we receive as publicly elected officials. It is therefore absolutely right that such officers should enjoy the same protections that we do. As I say, the Government should be congratulated on taking this matter seriously.

It therefore makes perfect sense to amend the sentencing code for England and Wales in clause 71 regarding offences that have been committed under the Elections Act 2022, so that going forward this can be treated as an aggravating factor. Of course, it is also perfectly sensible that the provisions apply to Northern Ireland, too.

We strongly welcome the Government’s action on this; it should be supported by everybody. I wanted to put it on the record that the Minister should be congratulated for it.

Zöe Franklin Portrait Zöe Franklin (Guildford) (LD)
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It was very good to hear from the Minister setting out this group of clauses. The Liberal Democrats are very pleased it seeks to address the hostility towards those who administer our elections. As colleagues on the Conservative Benches and the Minister have outlined, they play such an important part in our democracy.

Amendment 38 and new clause 55 in my name address the need for there also to be protection for the families and staff of candidates. I was a member of the Speaker’s Conference, and I would like to put it on record how pleased I am to see so many of its recommendations in the Bill. We considered in quite some depth the issue of abuse of candidates.

The survey of MPs and their staff highlighted the nature of the abuse and intimidation they experience, and the sad reality that it is not limited to them. Rather, where a bad actor is unsuccessful or unable to silence the candidate directly, they turn to the people around them. That can be partners, children or staff. We firmly believe that should not be deemed to be okay in the eyes of the law, and that it needs to be addressed.

New clause 55 amends the Elections Act 2022 so that relatives and staff of candidates are a protected category for the purposes of hostility-based disqualification and related provisions, defining “relative” by reference to the Family Law Act 1996, and “staff” as people

“employed by or working under the direction”

of a candidate. Amendment 38 amends clause 71 of the Bill to include candidates’ relatives and staff in the list for the hostility aggravating factor.

I hope that the Minister and the Government will support those important provisions. If they do not, could the Minister please outline how the Bill as drafted already covers candidates’ relatives and staff, or what the justification is for leaving such a gap?

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The Government, through the Bill, will also make provision for candidates to complete an optional additional form when completing their nomination papers. The purpose of this additional form is to allow candidates to provide their contact details to the returning officer for the specific purpose of the returning officer then sharing those details with local policing. Once local policing has this information, the relevant force’s elected official adviser will then make contact and arrange relevant security briefings for those candidates. I encourage all candidates, through Members on this Committee and in the wider House, to take up the offer of a security briefing at the earliest opportunity.
Paul Holmes Portrait Paul Holmes
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On new clause 55 and amendment 38, I understand why the hon. Member for Guildford, the Liberal Democrat spokesperson, is attempting to change the legislation.

The Minister may remember that we had a back-and-forth in relation to the security briefings being offered to candidates through Operation Ford, and the Government’s amendments. Has she given any more thought to a statutory timeline, and guidance on making sure that candidates are offered those briefings in a reasonable timeframe so that nobody slips through the net because the police force has not got around to it? That may inform the decision of the hon. Member for Guildford regarding whether to press the new clause and amendment to a vote.

Samantha Dixon Portrait Samantha Dixon
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The Government’s view is that the Electoral Commission is working hard, and that to prescribe timetables would place a restriction on it that we do not feel is required. Given the good, proactive work that it already does in this area, with the Government working alongside it, we do not feel it necessary to place a statutory duty on the Electoral Commission. With JESP, the Department and the Electoral Commission working hard across the electoral landscape, we do not feel that the amendment and the new clause are necessary, so I respectfully ask the hon. Member not to push them to a vote.

Question put and agreed to.

Clause 70 accordingly ordered to stand part of the Bill.

Clauses 71 to 74 ordered to stand part of the Bill.

New Clause 14

Removal of strategy and policy statement

“(1) In Part 1 of PPERA 2000 (the Electoral Commission) omit—

(a) sections 4A to 4E and the italic heading before those sections (strategy and policy statement);

(b) section 13ZA and the italic heading before that section (examination by the Speaker’s Committee of the Electoral Commission’s performance of duty to have regard to strategy and policy statement).

(2) Omit sections 16 and 17(1) of the Elections Act 2022 (which inserted the sections repealed by subsection (1)).

(3) The Electoral Commission is not required to publish a report under section 4B(4) of PPERA 2000 in relation to any 12-month period ending on or after the day on which this section comes into force.”—(Samantha Dixon.)

This new clause removes provision about the designation of a strategy and policy statement for the Electoral Commission.

Brought up, and read the First time.

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Lisa Smart Portrait Lisa Smart
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We should all be against political violence. People who propose and promote political violence should not be permitted to donate to political parties in the UK. I am thinking about people who have various convictions in the UK for promoting political violence and about people who own tech platforms but are based on the west coast of the United States and have spoken at rallies that promote political violence. We should not be welcoming their interference in our politics and new clause 3 seeks to stop them from doing so.

On new clause 2, the hon. Member for Ruislip, Northwood and Pinner talked about people who have been politically appointed to be an adviser for a foreign Administration, whether in a business ambassadorial or trade envoy role, and I see his point. I would have thought those are politically appointed, rather than on a civil service basis. However, there are people who are not political appointments who would not fall within new clause 2, so they could continue to operate both as an envoy or an ambassador in that informal business ambassadorial role and continue to donate. I do not think that is covered under new clause 2 as it is currently written.

Returning to new clause 3, the principle that our democratic institutions must command public confidence, and that those who seek to undermine them should face serious consequences, is one that we hold firmly.

On new clause 15, voters have a right to know who is financing the people seeking their vote. That is a basic condition of democratic accountability. Real-time disclosure of donations in a publicly searchable database of all online political ads and spending are commitments we have held for years. New clause 15 is entirely consistent with that agenda. There have been other amendments and proposals from other Members that have touched on some of those issues, which we also support.

New clause 16 would require the treasurer of each registered political party to prepare an annual statement setting out the steps taken to mitigate risks relating to donations originating from a foreign nation, to be delivered to the Electoral Commission alongside the party’s statement of accounts. We have heard a great deal throughout this Committee about the importance of transparency, and we agree.

This new clause makes transparency operational. It requires parties not simply to accept or reject donations, but to demonstrate annually that they have actively assessed and mitigated the risks of foreign money entering their finances through UK-registered vehicles. Foreign-owned UK entities are a known vector for influence. The public record of recent years—Russian money, oligarch links and opaque corporate structures—makes that plain. An independent annual audit is a proportionate and practical response.

New clause 17 is about prohibiting politicians from receiving payment from proscribed state broadcasters. State-controlled broadcasters have been used as instruments of foreign influence, disinformation and political interference for decades. It would be extraordinary to allow individuals seeking or holding elected office to receive financial benefit from those very organisations. That is not a blanket ban on media appearances—heaven forbid—it is a prohibition on financial relationships with broadcasters acting as foreign propaganda arms.

Moving on to new clauses 45 and 51 proposed by the hon. Member for Warwick and Leamington (Matt Western), the Joint Committee that he chairs noted potential risks around permissible donors being used as “conduits” to channel foreign money into UK politics. It further noted a discrepancy between corporations needing to have a UK connection—for example, generating enough revenue in the UK to cover their donation—and individuals, for whom there were apparently fewer such requirements. The report considered various options, balancing security interests against the risk of creating chilling effects.

New clause 45 would mean that overseas individuals wishing to donate would need to hold funds or assets that may be taxed in the UK, sufficient to cover the cost of their donation. That broadly mirrors the Government’s proposals for corporations to have generated sufficient UK-based revenue.

On new clause 51, the Joint Committee’s report also highlighted the resourcing challenges faced by the Electoral Commission and law enforcement bodies such as the National Crime Agency, and noted that legislative changes will be effective only if there is adequate resourcing to enforce the rules. New clause 51 would require the Electoral Commission and the National Crime Agency to report annually on the risks of foreign interference in the UK’s political finance system and the adequacy of systems in place to address those risks.

Paul Holmes Portrait Paul Holmes
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I rise to speak briefly to Opposition new clauses 38 and 39 in my name. They are proportionate measures to enhance the legislation and assist the Government in their aim of tightening up on foreign political donations.

New clause 38 would prevent people who are on electoral registers because they fulfil certain conditions in the Local Government and Elections (Wales) Act 2021 and the Scottish Elections (Franchise and Representation) Act 2020, but are not qualifying Commonwealth citizens, from being permissible donors. We have tabled it because we are concerned that modern changes to devolved legislation have created loopholes in who can give money from foreign origins.

The Labour Government in Wales have given all foreigners the right to vote in local and devolved elections. The SNP Scottish Government have done the same in Scotland. Those Administrations have made those changes through section 2 of the Local Government and Elections (Wales) Act and section 1 of the Scottish Elections (Franchise and Representation) Act.

Such legislation has also given foreign residents the right to make unlimited donations to UK politicians and political parties. We contend that that opens the door to Russian, Chinese and Iranian foreign influence. For example, a Chinese “student” resident at a Scottish university can legally make political donations to any UK political entity. We have raised that issue in Parliament, but the current Government have declined to address it. The new clause would essentially ban that from happening, except where a person is a Commonwealth, Irish or EU citizen, as we believe those historical links are much more in keeping with the current electoral guidelines and legislation.

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Our package of reforms already strengthens the electoral framework in a more effective and appropriate way. The new “know your donor” regime will require recipients of significant donations to undertake risk assessments on the origin of the funds, helping them to identify potential foreign or illicit influence at the point a donation is made.
Paul Holmes Portrait Paul Holmes
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I understand why the Minister is concerned about some of the new clauses, and as I said before, she is right that the Government are trying to tighten up the regime. On her argument that the Electoral Commission does not currently have the responsibilities she outlined, however, does she not agree that there is still a problem with two-way information sharing?

The Minister is absolutely correct to say that the Electoral Commission has the power to access Companies House information and powers under the Economic Crime and Corporate Transparency Act 2023. However, if we look at past examples of registered Chinese Communist party spies giving money to political parties in this House, does she not think it would have been useful if the Labour party, in that case, had known about that via the security services and could have refused the donation? I am not sure whether the Government are filling the hole of two-way information sharing, and that concerns me.

Samantha Dixon Portrait Samantha Dixon
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I thank the hon. Gentleman for giving me a breather. As he knows, the Rycroft review considered this matter and—I mean this sincerely; it is not simply a form of words for the Committee —the Government are carefully considering those recommendations and will respond in due course. To give him that assurance: this is part of that consideration.

Alongside the measures I mentioned, enhanced company permissibility tests ensure that only organisations with a genuine and substantive UK connection can donate, closing off key vulnerabilities in our electoral framework. The Government are also committed to robust monitoring and evaluation of the Bill, and anticipate that this will include an impact evaluation assessing whether the policies introduced have achieved their intended aims.

We have discussed the Rycroft review, and I sincerely mean it when I say that we will respond fully in due course to all the measures in it, including on improved co-ordination between the Electoral Commission, the Government, the security services and the police. For those reasons, while I fully understand the commitment of my hon. Friend the Member for Warwick and Leamington to strengthening our defences against foreign interference, the Government do not consider this amendment to be the right mechanism to achieve that end.

Lisa Smart Portrait Lisa Smart
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I am grateful to all who have contributed. I plan to press to a vote all the new clauses that I have spoken to.

Paul Holmes Portrait Paul Holmes
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In the interests of ensuring that you call the right votes, Dame Siobhain, there is no doubt in my mind when the Minister says she is genuinely looking at trying to fix this problem—I believe her; she is a Minister of integrity and I know the Government absolutely want to achieve that aim—but this is happening now and, with no commitment to timescales, as the hon. Member for Hazel Grove asked for in relation to the Rycroft review, I am concerned that it will still be a problem.

I know the Minister will try to implement this carefully, but the lack of information sharing at this precise moment means that money is still being given, despite the fact that organisations that the Electoral Commission is not currently asking could provide that desperately needed clarity and transparency. Given the reassurance that the Minister has given to the Opposition on new clauses 38 and 39, however, I will not press them to a vote.

Question put, That the clause be read a Second time.

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Paul Holmes Portrait Paul Holmes
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The hon. Lady is making an excellent speech. I agree with every word she says about there being a very fine balance between a moratorium and a ban—a ban could, actually, be retrograde—but if we have a moratorium we should at least have a regulatory framework that makes sure that cryptocurrency cannot be moved upstream. Does she share my concern that, despite the good intentions of the Minister and the Government, and despite consistent pushing for a timescale for the implementation of the Rycroft review, we have not had that? She is therefore right that the Committee is the perfect opportunity to get the ideas of all political parties, and to hopefully get a better idea of the Government response.

Ellie Chowns Portrait Dr Chowns
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I share the hon. Member’s enthusiasm and sense of urgency about getting Rycroft implemented as soon as possible. In the spirit of giving credit where it is due, the Government did commission that review—which was good—the review was quite fast, there was an immediate statement, and the Bill is going through. I do not think that we are in a perfect place.

I would have liked the Bill to have longer in Committee to give the Government a chance to introduce amendments that we could properly scrutinise. It is deeply unfortunate that, for a Bill that is about the workings of our electoral system, we are not able to do that core scrutiny in Committee—the crucial line-by-line scrutiny in the Commons, which is the elected Chamber. We are being asked, basically, to take it on trust. It is not that I distrust Government, but it is important to have this discussion now. I hope that the Minister will respond to those points.

I have made the point about the importance of including in primary legislation the criteria under which any moratorium might be lifted in the future, and that there must be really strong safeguards. I have also made the point that a ban on crypto donations will not itself stop the risk, because of the downstream issues. We have to think carefully about how whatever mechanism is introduced deals with that.

We have already seen that Ben Delo, who has given £4.5 million to Reform in recent months, has said, “Oh dear, since I am going to be hit by this retrospective moratorium I am going to move back to the UK to evade it.” That is clear evidence of gaming the system by a guy who, by the way, was convicted in the US of impropriety in relation to political financing. He was subsequently pardoned by Donald Trump. We have to be really careful of how bad actors might manipulate any legislative proposals that are introduced.

A ban on cryptocurrency will not, in itself, stop the risks. We also need a cap on all political donations—we will discuss a group of new clauses relating to that in a bit, so I will save my arguments on that topic until then—plus a donor register, as I spoke about in Tuesday’s sitting. A donor register with donor registration numbers would address the issue of traceability and address the risk that donations are split into many tiny donations to hide the fact that they are all from the same place. Having to have a donor registration number that is associated with a particular, identified, allowable donor would go a long way to addressing that problem. I look forward to hearing from the Minister.

Lisa Smart Portrait Lisa Smart
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I am happy to be speaking in support of new clause 4, and in favour of new clauses 12 and 20. New clause 20, which is in my name, would require parties to declare cryptoasset donations that they have received in the past. I agree with pretty much everything that the hon. Member for North Herefordshire said, and I note my earlier comments about the sticky wicket on which the Minister is being asked to play.

The Government’s statement on the publication of the Rycroft review was a rare moment in which they nailed both the timing and politics of an issue, and it was absolutely right to ban crypto from that day to stop any further gaming of the system. However, I completely agree with the hon. Member that this Committee is the place to have a conversation about what that will look like. Future Government amendments will be tabled at a later, as of yet unspecified date. I believe that the Minister is working with officials on the issue, but this Committee is where we can talk about the Bill on a cross-party basis.

The Rycroft review recommended that a moratorium be placed on political donations made in cryptoassets. The Government responded to the review on the date of its publication, but, although other amendments to the Bill have been tabled, there has not yet been a clear indication of how quickly that recommendation will be integrated into it. The Liberal Democrats look forward to getting some further detail, dates and quick action, but we also want the measures introduced in this Bill to be effective in the long term.

Cryptoassets are extremely difficult to trace. The difficulty in tracing the ultimate ownership of cryptoassets, the proliferation of different kinds of cryptoassets and the advent of AI-assisted technologies that can break cryptoassets into small amounts, below any threshold at which donations may have to be declared, create serious risks for political finance transparency. There is also a real risk of cryptoassets being used as a vehicle to channel foreign money into the UK political system, and neither the Electoral Commission nor political parties currently have the capability and expertise to manage that risk adequately. New clause 20 would require parties to declare the cryptoasset donations that they have received in the past. Given the clear issues with crypto donations, the public should surely expect transparency on them.

On new clause 12, tabled by the hon. Member for Warwick and Leamington, the Joint Committee on the National Security Strategy examined the merits and risks of allowing crypto donations, noting that benefits include the potential for greater transparency in some cases, and for regulations to gradually institutionalise alternative forms of payments. However, the Committee concluded:

“Crypto donations pose an unnecessary and unacceptably high risk to the integrity of the political finance system and public trust in it. We accept that future regulations may institutionalise the use of alternative payment systems for use in donations. At present, however, the opportunity to evade rules is too high, the adequacy of mitigations too low, and the resource cost of attempting to implement acceptable oversight is disproportionate. We see no democratic imperative to permit the use of crypto in political finance until adequate safeguards are in place.”

Crypto also poses wider upstream risks to the integrity of political finance, with the Committee report going on to say that

“donors can convert ‘dirty’ foreign crypto funds into ‘clean’ UK fiat and then donate it without arousing much suspicion. A ‘last mile’ ban on crypto donations is therefore not a panacea. Specialist capabilities to address upstream risks are underpowered and require further work.”

New clause 12 therefore calls for an immediate moratorium on crypto donations until the Electoral Commission produces statutory guidance, which should be made using the affirmative procedure to ensure that Parliament has the opportunity to review its adequacy before it is accepted. That guidance could include measures regarding the donor’s identity and location, the original source of funds and maximum limits on the amount of crypto that may be donated.

It is also worth mentioning that, as we have seen in the press in the last couple of weeks, a leader of a UK political party has been promoting the use of cryptoassets and has gained financially from doing so. We should all spend a moment to reflect on why somebody would want to do that, particularly when cryptoassets are not risk-free. Promoting their use, and the use of gold bars as an investment tool, should be beyond what is acceptable for an elected Member of this House. I encourage anybody, particularly people who purport to lead a political party in this country, to really think about the impact of their actions, particularly when it is for financial gain. On that basis, I commend new clauses 12 and 20 to the Committee.

Paul Holmes Portrait Paul Holmes
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I will touch very briefly on the new clauses that have been tabled. I thank RUSI for the report that the hon. Member for North Herefordshire outlined. I had a meeting with RUSI yesterday, and the fact that it was able to even start to break the ice of my understanding of cryptocurrency and the regulatory framework that is needed was a miracle. It has done a lot of work on this issue, and I congratulate it on coming up with quite sensible proposals and information that goes into detail about the benefits of a ban versus a moratorium.

It is very easy in this House to ban things, but we do not want a ban that creates a worse problem by moving that cryptocurrency upstream. Therefore, as the official Opposition we welcome the idea that there should be a moratorium. We also welcome the fact that the Government implemented an immediate ban pending a review. If a moratorium goes ahead, we need to make sure that an adequate regulatory framework is implemented to prevent some of the exploitative measures that the hon. Member for Hazel Grove outlined in her excellent contribution.

As the hon. Member for North Herefordshire outlined, we are discussing in this Bill Committee probably the most important aspect of the integrity of the electoral process. There are plenty of others in that competition, but the most important aspect of that is foreign interference and donations, including cryptocurrency donations. We are being asked to give the Government our trust—and I do trust the Minister—that these changes are going to happen very soon. The hon. Member is absolutely correct to say that this is the most intense part of the parliamentary process. At the moment, we are being asked to debate new clauses put forward by Opposition parties. We are relying on the Government to give these matters just as much importance, yet they have not given that timescale.

I am torn on new clause 4. I understand the intention of the hon. Member for Warwick and Leamington, but at the moment my feeling is that new clause 4 is really not worth agreeing to. That is because of the evidence given to me by RUSI, which shows that preventing parties and candidates from accepting donations in cryptoassets does not solve the issue of those cryptoassets getting through to candidates and parties, or interested parties, later down the line.

The briefing that was given to me by RUSI about the potential drawbacks of a ban mean that I am not satisfied that new clause 4 would do anything at this precise moment. I rose to speak because I want to sincerely give the official Opposition’s commitment to assist if the Minister wants to engage on a cross-party basis. That has my contention at other stages of the Bill Committee—we stand ready to assist on a cross-party basis to really speed up the passage of elements of the Bill, including on this matter. I would never speak on behalf of other parties, but I am sure that stands for them as well.

Lisa Smart Portrait Lisa Smart
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As the hon. Gentleman is mentioning other parties and as I represent one of those other parties, it is only appropriate that I stand up and agree with him wholeheartedly. Everybody in the Chamber and beyond wants us to get this issue right. It is not a party political point. As the hon. Gentleman is, I and we are ready to work cross-party to get it right. If that means us doing some extra work between the various stages of the Bill, I would be completely content to be part of that.

Paul Holmes Portrait Paul Holmes
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I thank the hon. Lady.

Ellie Chowns Portrait Dr Chowns
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For the sake of the record, I feel duty bound to say, “Me too!”

Paul Holmes Portrait Paul Holmes
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I thank both hon. Members. Who would have thought that I could get some agreement from the Liberal Democrats and the Green party? I entirely welcome it: they are absolutely correct. This is not a party political matter; it is a genuine attempt to fill the void that the Government have created through the lack of a timetable for ensuring that we tackle this issue.

The Minister is correct to say that this is a really complicated issue, so we must get it right in this legislation. Electoral reform legislation usually comes before the House only every decade and if we do not get it right, we will allow malign influences into the political process. I hope that the Minister takes that seriously. We stand ready, between stages of the Bill, to have a meeting on a cross-party basis, perhaps through the Parliamentary Parties Panel. The Opposition think that a moratorium is better than a ban, but the right regulatory framework has to be in place. We stand ready to assist.

Samantha Dixon Portrait Samantha Dixon
- Hansard - - - Excerpts

New clause 4 seeks to make donations made to a registered political party, candidate or agent impermissible if the donation is made wholly or in part with cryptoassets.

New clause 12 purports to take a power so that the Secretary of State may make regulations, drafted by the Electoral Commission, mandating various requirements relating to the political donation of cryptoassets. It seeks to establish that political donations made via cryptoassets would be deemed impermissible unless those regulations were met. It intends to create an effective moratorium on cryptoasset donations until those regulations would be in force. On 25 March, the Secretary of State published the report of the independent review by Sir Philip Rycroft—sorry, I keep knighting him.

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Finally, I want to address the point made by the hon. Member for Hamble Valley, and all other Members who have offered to work on a cross-party basis—if only the hon. Member replied to my letters!
Paul Holmes Portrait Paul Holmes
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I don’t think I have had any.

Samantha Dixon Portrait Samantha Dixon
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He did. I invited him to come and talk to me about the Bill; other Members received their letters and came.

Putting that to one side—I am being slightly flippant—this has been a very fast-moving environment, and policy has been formulated very quickly in response to Rycroft. I undertake to work collaboratively with the hon. Member for Hamble Valley and Members of all parties as we go forward with the Bill—this is not the end of its passage.

I note the comment made by the hon. Member for North Herefordshire about having a longer Committee stage, but I am mindful that the implementation of other areas of policy needs to continue—so that we can, for example, introduce votes at 16 in time for the next general election. Although we want to go longer, we also want to go quicker. We will work collaboratively as we go forward.

Paul Holmes Portrait Paul Holmes
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I think the Minister is being slightly sneaky, dare I suggest: she did write to me about having meetings, but there were no proposals in the Bill on cryptocurrency and there still are not. Therefore, that issue was perhaps not within the remit of the legislation. When it came to other aspects of the Bill, I presumed that we would have gone through the usual channels and passages in Committee. The Minister is absolutely right that we did not meet, but that did not include the issue of cryptocurrency in this legislation.

Samantha Dixon Portrait Samantha Dixon
- Hansard - - - Excerpts

However, had the hon. Gentleman come along, he would have had the opportunity to raise anything he wanted to discuss, as other Members did— I am always happy to meet the hon. Gentleman.

Given the assurances I have provided, particularly that the Government intend to table an amendment on the moratorium period for cryptocurrencies, I hope the hon. Member for North Herefordshire will consider withdrawing her new clause.

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Zöe Franklin Portrait Zöe Franklin
- Hansard - - - Excerpts

New clause 6, tabled by my hon. Friend the Member for Newton Abbot (Martin Wrigley), picks up on the 2024 voting reforms that expanded eligibility for around 1.4 million to 3.4 million people—yet of those individuals, only 191,000 overseas voters are registered. I suggest that that is not a lack of interest in democracy, but a failure of the system to make voting workable for those living abroad. What that means practically is that the UK is now near the bottom internationally for how effectively it enables our overseas citizens to vote.

One of the core problems is postal voting, as it does not work reliably for those living overseas. According to the Electoral Commission, only 52% of overseas postal ballots arrive in time to be counted. Following conversations between my hon. Friend the Member for Newton Abbot and other organisations—we took evidence on this during the Committee evidence sessions—it is clear that overseas voters are seeking practical changes that would enable them to reliably cast their votes securely and more easily and reliably. The proposed new clause sets out methods for doing so, including secure downloading and printing of ballots and returning ballots to embassies and consulates. It is worth noting that such a system is already used in the Netherlands, New Zealand and Spain.

I turn to new clause 7. Another part of the problem for overseas voters is that they are simply not aware that they can register to vote or of how they can do so. One option, discussed in the Committee evidence sessions, is to provide an opportunity at the passport renewal and application stage, when they could be given this information. When a UK citizen applies for or renews a passport, they already provide proof of identity, their overseas address and their last UK address: everything needed for voter registration.

Voters should be simply prompted and given the option to register at that point. My hon. Friend the Member for Newton Abbot is not suggesting that they should be automatically registered, but given that the Bill seeks to roll out automatic voter registration and my hon. Friend has posed the question to the Government, providing an automatic moment to tell people they can register to vote and how to do so would be within the scope of the Bill and an opportunity the Bill could take.

I move on to new clause 8, tabled by my hon. Friend the Member for Henley and Thame (Freddie van Mierlo). New clause 8 and the associated amendment 3, which is consequential on the new clause and also tabled by my hon. Friend, would require the Secretary of State to conduct feasibility studies on improving overseas voting, as recommended by the Public Administration and Constitutional Affairs Committee’s Second Report of Session 2024–25 and its review of the general election. With over 3.5 million British citizens abroad eligible to vote, it is important for the Government to use this Bill as an opportunity to break down barriers to voting so that citizens can be fairly represented.

In the last general election, fewer citizens abroad were registered to vote than in 2019, in spite of an historic expansion of eligibility to vote following the scrapping of the 10-year rule. I have already outlined in my comments on the new clause tabled by my hon. Friend the Member for Newton Abbot that ballots can end up arriving too late for overseas citizens to be able to cast their votes, and proxies can be problematic to arrange if they no longer have contacts here in the UK to cast votes for them.

It is estimated that only 25% of citizens abroad know their rights and that they can vote, and only 48% of postal votes were returned; of course, the number varies slightly depending on which organisation we reference. I have already outlined that there are other countries with systems in place that enable their citizens overseas to cast their vote in an easier, secure and reliable way.

So far it appears the Government have been unwilling to take the steps necessary to make things easier for overseas voters. The new clauses are designed to ensure that the Government take steps to investigate how to make overseas voting easier for our constituents. Can the Minister outline whether the Government will support any of the new clauses in the name of my colleagues? If not, can she outline how the Government intend to ensure that overseas voters are able to cast their ballot in a safe, secure and reliable way?

Paul Holmes Portrait Paul Holmes
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Forgive me, Dame Siobhain, but am I allowed to speak to new clauses 42 and 43?

None Portrait The Chair
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indicated assent.

--- Later in debate ---
Paul Holmes Portrait Paul Holmes
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Thank you very much for your nod of assent, Dame Siobhain, and to the Clerk.

This group of new clauses are integral to the Bill. The Liberal Democrat spokesperson, the hon. Member for Guildford, said they relate to one of the holes in this legislation. As I outlined earlier, electoral reform legislation generally comes to this House probably once every decade, and that is why we should treat it as important and use it to try to right some of the wrongs or deficiencies within our electoral system.

We seriously believe that the rights of overseas voters are important. Let us cast our minds back to what seems like an age ago, when we had the evidence sessions of this Bill Committee. Each of our respective political parties, including the governing party, has honourable volunteers trying to advocate the rights of voters living abroad. At the moment, there is no attempt from the Government to try to right some of the wrongs and include overseas voters in our democratic process as they should be.

New clause 43 is similar to the proposals put forward by the hon. Member for Guildford in new clause 8. It would allow the Secretary of State to regulate to introduce a system to grant overseas electors the ability to register to vote when they renew their passports. New clause 42 would require the Secretary of State to make provision by regulations so that overseas electors can vote in person at United Kingdom embassies, consulates and high commissions for United Kingdom parliamentary elections. We believe that those are proportionate and sensible measures to include some overseas voters.

I understand there may be an intervention that says, “What if people cannot get to consulates or embassies?” We believe new clause 42 would be the first step to ensure a full review of the overseas elector system. We understand that some people could be excluded because of geography, but we believe that it would be a step towards increasing the low engagement rate that we have seen in past elections.

On new clause 43, there is a democratic deficit with overseas voters. We think it should be made easier to register to vote as an overseas elector. Therefore, when people renew their passports, we believe that the new gov.uk one-stop-shop website that the Government set up—I used it the other day—would be a perfect online tool for that. That would help the participation rate of overseas electors, which, as the hon. Member for Guildford said, is notoriously low and something we all want to improve.

The Elections Act introduced a series of measures to support British citizens living overseas. That included votes for life, by removing the previous 15-year cap on being registered. However, the Electoral Commission’s evaluation of the 2024 general election found a series of practical obstacles in the way of overseas voters—we heard from them at the evidence session—especially for those who live a long way away and may be unable to send their postal votes back in time.

Only 52% of overseas postal ballots were returned in time to be counted, and the return rate in Australia was a mere 6%, as evidenced in the Electoral Commission’s report on the 2024 UK general election. That is nothing less than tangible disenfranchisement, and that needs to be corrected.

In new clause 8, the hon. Member for Guildford is trying to do that by establishing at least a feasibility study on how we do that. This is very similar to discussions with regard to cryptocurrency; by using those organisations that gave evidence, every party can feed into the review and the feasibility study. That is perfectly admirable, but I argue that that is a longer-term thing. Our new clauses 42 and 43 would bring in practicable steps now to engage that participatory process. As I say, we perfectly accept that it would not solve every issue, but it would include those participation rates.