Political Finance Rules
Paul Kohler Excerpts(2 weeks, 5 days ago)
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Mr Paul Kohler (Wimbledon) (LD)
I congratulate the hon. Member for South Dorset (Lloyd Hatton) on securing this debate, and I thank the Backbench Business Committee for granting it.
As the Prime Minister declared last year, and as we see so graphically on the world stage now, the �fight for trust� will be
�the battle that defines our political era.���[Official Report, 17 July 2024; Vol. 752, c. 56.]
It is clear that if we MPs are to achieve the changes that people need most in their lives, we need a functioning democracy. If those we represent do not trust politicians to act in their best interest, we will not be an effective institution. Currently, it is simply not the case that they trust us. Both in the UK and across the globe, faith in politics and politicians is at an all-time low. In the UK, 76% of people have little to no trust in Members of this House�up from 54% a decade ago. I note with no great relish that this may not be surprising after years of a Conservative Government who were more concerned with their internal politics than the concerns of people around the country, but it should be a deep concern for us all. Rebuilding trust in politics is the goal, regardless of our political colour or persuasion. I am sure that all Members of the House can support that, but it will not happen overnight.
Research from the Electoral Commission shows that only 15% of people agree that there is transparency around the money spent and received by parties and campaigners�down from over a third in 2011. We should be clear that political donations are not inherently wrong and are part of a vibrant democratic system. Individuals should be able to take part in the democratic process through political donations, which can help people to further the goals and ideals that they believe in. Banning any donations would entrench power, leaving new or smaller parties unable to campaign against incumbents. It would work against many of our democratic principles, but it is clear that although political donations are a good thing, we must have adequate transparency as to the source of the money. That is currently not the case.
The legal framework for the political finance system is now over 25 years old, and though it was explicitly intended to ban foreign donations to UK political parties, there are clearly many loopholes. There is no doubt that foreign nations have an interest in altering our politics. Dictators such as Putin and Xi Jinping have made it perfectly clear that they do not believe in democracy and are willing to undermine our institutions, but our current system has built-in loopholes that allow foreign interests to channel money to our politics to shape it in their interest. At present, UK-registered companies are permitted to make donations using money raised overseas and, as has been said previously, unincorporated associations can legitimately make donations using funding from otherwise impermissible donors.
It is not just foreign donations that should cause concern; the sheer amount of money coming from a small number of extremely wealthy donors is also worrying. Of the �85 million received in private donations in 2023 alone, two thirds came from just 19 donors. Money helps direct the political winds, and having that amount of money come from such a small number of powerful individuals risks bringing our democratic system into disrepute.
We must introduce a cap on donations. No matter how noble the intention, no individual should be able to donate excessively, as large donations can at the very least give the impression that undue influence is being exercised over our democracy. This would not only be a positive step in cleaning up politics; it would be popular too. A recent YouGov poll found that more than two thirds of the British public support a limit on political donations. Personally, I also have concerns about the capacity of union barons to exercise what might appear to be undue influence via the vast amount of money accumulated through the political levy, which they can donate or withhold as they see fit. However, I acknowledge that the issue is complex.
We are at a crucial juncture, and it is in everyone�s interests that the Government get a proper handle on this issue. We cannot enter the next general election with so many questions left unanswered.
Madam Deputy Speaker (Caroline Nokes)
I call Stella Creasy, with a four-minute time limit.
Oral Answers to Questions
Paul Kohler Excerpts(3 weeks, 1 day ago)
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Alex Norris
They will be all those things; I believe that is a shared goal. For clarity, we are taking forward the recommendations. As we stated last week, we do not think that the testing houses ought to be under the purview of a single construction regulator, as that would mean that the regulator would essentially mark its own homework if there was a problem. I know Opposition Members have a problem with this, and I am more than happy to speak about it in greater detail.
We are looking very closely at European standards, as the hon. Gentleman will have seen in the “Construction Products Reform” Green Paper. Alignment with those European standards is probably a desirable goal, but that is subject to the ongoing consultation. We are very clear that the current regime does not cover enough construction products. There is not enough transparency or accountability when things go wrong. Our desire, as has been expressed from the Dispatch Box, is for a very high standards regime, and I look forward to working with Opposition Members in service of that shared goal.
Mr Paul Kohler (Wimbledon) (LD)
The Parliamentary Under-Secretary of State for Housing, Communities and Local Government (Alex Norris)
We all want to see our town centres thrive, and it is one of those things that constituents raise with all of us. That is why we are delighted that at the Budget, the Chancellor confirmed that the long-term plan will be retained and reformed. The plan is working with 75 towns across the UK, providing each with £20 million to support their regeneration. Of course, this comes on top of the innovation of high-street rental auctions, and the forthcoming community right to buy.
Mr Kohler
I thank the Minister for his answer. I am proud to have half of Morden town centre in my constituency. Morden is an area ripe for rejuvenation. It has fantastic transport links, but like many town centres across the country, it is struggling. As one Labour councillor recently noted in the council chamber, despite years of promising to regenerate Morden, Labour-run Merton council has failed to deliver. Just last week, it again put off doing anything—this time until at least 2027. Will the Minister meet me to discuss why the council has failed to begin rejuvenation over the last 30 years, and to discuss what support the Government can now give?
Alex Norris
I am grateful for the hon. Gentleman’s invitation, which, of course, I will take up. The experience that he talks about is not uncommon in the rest of the country; certainly, over the last 14 years, there has been very little progress. I know that Merton council, for example, is investing some £300,000 in brightening and refreshing Morden town centre, but I know the council, like the hon. Gentleman, wants to see more done. I will be happy to sit down to talk to him about that.
Oral Answers to Questions
Paul Kohler Excerpts(3 months, 3 weeks ago)
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Alex Norris
I am grateful to the hon. Gentleman for that question, although I am sad to hear it. The asset of community value status really ought to give a degree of protection, but I am happy to talk about that further. As I have said, round 4 of the community ownership fund will be coming forward very shortly.
Mr Paul Kohler (Wimbledon) (LD)
The Minister for Housing and Planning (Matthew Pennycook)
The Government recognise the considerable financial strain that rising service charges are placing on leaseholders, including those whose landlord is a social housing provider. As the hon. Gentleman will know, variable service charges must, by law, be reasonable. Their reasonableness can already be challenged at the appropriate tribunal and the housing ombudsman can investigate complaints about the fairness of service charges made by shared owners, as well as tenants of social housing landlords, but the Government are exploring what more can be done to give leaseholders the protection that they need from unaffordable service charge increases.
Mr Kohler
Many leaseholders in my constituency live in properties where Clarion housing association is the freeholder. This year’s service charge is on average almost 50% higher than the original estimate and for some on the High Path estate it is over £1,000 more. Does the Minister agree that leaseholders deserve transparency, not shock bills? What more can be done to give the housing ombudsman the power to demand compensation payments?
Matthew Pennycook
I thank the hon. Gentleman for that supplementary question and assure him that I share his deep concern about the pressure on the household budgets of shared owners in his constituency, and others across the country, as a result of rising variable service charges. In addition to the routes to redress I have just set out, I draw his and the House’s attention to the measures in the Leasehold and Freehold Reform Act 2024 that are designed to drive up the transparency of service charges to make them more easily challengeable if leaseholders consider them unreasonable. Further detail about our plan to bring those and other provisions in the Act into force can be found in the written ministerial statement made on 21 November.