Representation of the People Bill (Sixth sitting)

Debate between Paul Holmes and Lloyd Hatton

Committee stage
Tuesday 14th April 2026 Public Bill Committees

[Lloyd Hatton]

Before I speak to clause 58, let me say in response to the hon. Members for Hamble Valley and for Hazel Grove that this game-changing legislation and the Rycroft review have both come in the first Session of a new Government. There is a clear understanding—the Minister has made it known here and in the Chamber—that the threats that we face, whether through foreign interference or foreign money trying to influence our democratic process, are severe, and we have made a robust response to them, through this legislation and by commissioning the Rycroft review last year.

I want to make two points on clause 58. First, a key part of the changes introduced by the Bill is the “know your donor” principle, which will require political parties to take more responsibility for exactly who is funding them. Existing rules do not specifically require recipients to consider the risk that a donor is potentially facilitating an illegal donation. I welcome the fact that that will change as a result of this clause, which will bring about a complete overhaul of the system and I believe will improve the integrity of our democracy, help strengthen national security and help restore trust in political parties across the country.

[Paul Holmes]

The hon. Gentleman is absolutely right that the clause is important. We do need to have a greater say. He says he supports the clause, and I agree with him, because he is very sensible. But given some of the headlines we have had across the House in recent weeks about the origins of donations and the facilitation of bad donations, why does he not agree with us that foreign influence registration should be part of the risk assessment? Does he share my concern that the Government have rejected that?

[Lloyd Hatton]

I do not believe that the Government are rejecting that carte blanche. As I was about to say—it is almost as if the hon. Gentleman has my notes before him—the Rycroft review commissioned by this Government notes that the “know your donor” provisions are similar to the anti-money laundering checks that are required by thousands of organisations, large and small, in the private sector, the third sector and elsewhere. Those are about ensuring that financial transactions, such as a donation, are indeed legitimate. As we digest the Rycroft review, I hope and expect that the Minister will give careful consideration to what it sets out and look at the idea that “know your donor” checks should more closely mirror the due diligence checks we see elsewhere, particularly in relation to anti-money laundering regulations.

In making my second point, which I think is worthy of further consideration, I think it will be helpful to provide a case study. As Members on both sides of the Committee will recall, earlier this year the hon. Member for Great Yarmouth (Rupert Lowe), a former Reform UK MP—I notified him that I would be mentioning him—launched a new political party, Restore Britain. Before that, however, he set up a “political movement”, and he may or may not—we do not know—have received substantial contributions from impermissible sources before Restore Britain was registered officially as a political party. The fact is that we simply do not have a clear understanding, and the current legal landscape means that there are no checks on the funds that a party may hold prior to formal registration.

I should make it very clear that the Bill goes far in strengthening controls on the sources of donations to political parties, and goes a great way to shoring up our democracy against foreign interference. However, I would really welcome the Minister’s thoughts and ideas on how we can ensure that a political party does not seek to sidestep controls on donations and loans by accepting substantial contributions from a potentially impermissible source simply because it has not yet set itself up officially as a political party.

I know that this is something that Rycroft seeks to understand at a top level in his review, so I do not expect it to be dealt with in Committee—I think that would be wrong, because we had the review only just before the Easter recess—but I would welcome the Minister’s thoughts, as the Bill proceeds, on how we close down the potential problem whereby political movements, political projects or whatever we want to call them seek to gain donations outside the controls and checks that would apply if they were a registered political party.