Political Finance Rules

Rushanara Ali Excerpts

Thursday 6th March 2025 Commons Chamber

[The Parliamentary Under-Secretary of State for Housing, Communities and Local Government (Rushanara Ali)]

I thank my hon. Friend the Member for South Dorset (Lloyd Hatton) for opening this debate and congratulate the Backbench Business Committee and its key members on granting this debate. I am extremely grateful to hon. Members for their insights and excellent contributions, all of which are incredibly valuable as we make progress on such an important agenda. I have heard real passion and conviction in today�s speeches. In those powerful speeches in defence of our democracy, our desire to protect it from those who would distort and disrupt it was clear.

The UK�s democratic system has evolved over time to create a stable and adaptable political ecosystem, with strong institutions that are rightly held as exemplars the world over. We can be proud of our historic commitments to expanding democratic rights and making our system more representative and inclusive. We must not be complacent, however. Democracy is hard-won and fragile. The price of our democracy is eternal vigilance, and nowhere is that truer than in campaign finance and political funding.

This Government are committed to strengthening our democracy and ensuring full participation in our elections. We will set out the Government�s approach to elections and electoral reform for this Parliament in a published document before the summer recess. Effective regulation of political finance is crucial in maintaining public trust in our electoral systems, and that point was well made today in the speeches by hon. Members.

The UK has a strong political finance framework that makes it clear that only those with legitimate interests in UK elections can make political donations. Foreign money has no place in the UK�s political system, which is why the law is clear that foreign donations are not permitted, with the exception of donations from certain Irish sources to Northern Ireland political parties. That recognises the special place of Ireland in the political life and culture of Northern Ireland and is consistent with the principles set out in the Belfast/Good Friday agreement.

Accepting or facilitating an illegitimate foreign donation is rightly a criminal offence. Political parties are required by law to take reasonable steps to verify the identity of a donor and whether they are permissible, and there are rules that safeguard against impermissible donations through the back door. While it is clear that foreign donations to political parties and other campaigners are illegal, the Government recognise the continued risks posed by actors who seek to interfere with and undermine our democratic process�a point well made by a number of hon. Members.

We do not think that the current rules provide strong enough safeguards. That is why the Government committed in their manifesto to

�protect democracy by strengthening the rules around donations to political parties�,

including enhanced safeguards against foreign donations. We are considering a series of policy interventions, such as enhanced checks by recipients of donations and tighter controls on donors, including more restrictions around company donations.

Hon. Members have mentioned the important role that the Electoral Commission plays in the UK�s democratic system as the regulator of political finance. Robust regulation and enforcement of political finance rules are crucial for promoting public confidence and trust in democratic processes, ensuring integrity and combating the threat of foreign interference.

As part of delivering on our commitment to strengthen the rules around political donations, we are reviewing whether any changes are required to the role and powers of the regulator to ensure that enforcement provides a clear deterrent against breaking the law while remaining proportionate. The Government are developing proposals to give effect to those commitments. In the meantime, I assure hon. Members that we are carefully considering evidence from a wide range of stakeholders, including recommendations from the Public Administration and Constitutional Affairs Committee, the Committee on Standards in Public Life and the Electoral Commission. At its core, that work is about protecting the integrity of our democratic process. It is therefore vital that we remain responsive to the full range of threats to our democracy and continue our efforts on the related issues of election security and preparedness.

Working across government with the intelligence agencies, the devolved Governments, the police and external partners, the Government will continue to monitor and respond to emerging issues, such as protective security cyber-threats, as well as misinformation and disinformation.

[Ben Lake (Ceredigion Preseli) (PC)]

I am pleased to hear the Minister say that the Government are awake to the evolving nature of the threat, especially in cyber and on social media platforms. One of the things that I hope they look at is the various ways that social media can be used to directly or indirectly benefit political parties.

[Rushanara Ali]

The defending democracy taskforce, chaired by the Home Secretary alongside the Deputy Prime Minister, is very much looking at those issues.

[Andrew Lewin (Welwyn Hatfield) (Lab)]

My hon. Friend talked about the evolving nature of the threat. Members on both sides of the House have spoken of Elon Musk, and I feel compelled to do so, too. This is a man who, when our country was going through riots, said that we were on the verge of civil war. This is a man who said that one of our own Ministers should be put in jail. Is she able to say for the record that that is exactly the type of person who we need to investigate, and that his money has no place in our politics?

[Rushanara Ali]

It is crucial that we focus on ensuring that our democracy and its integrity are protected from interference and that we have public confidence, and that is our focus. Instead of going into specific individual cases, my focus is on ensuring that we build trust in our system and protect our democracy against interference, and political finance is a key part of that.

In closing, I thank hon. Members from across the House for their contributions to this important debate, which was rich with suggestions and ideas. As we make progress in the coming months, I very much look forward to working with colleagues, across parties, to ensure that we take the necessary action. We want a robust, vibrant and representative democracy, and that means fighting foreign interference and unfair funding. I look forward to bringing forward further details, before the summer recess, on how we intend to strengthen our democracy and uphold the integrity of elections.