Political Donations

Rushanara Ali Excerpts

Monday 31st March 2025 Westminster Hall

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

It is a pleasure to serve under your chairmanship, Mrs Harris. I thank my hon. Friend the Member for North Ayrshire and Arran (Irene Campbell) for introducing the debate, and I congratulate Jeremy Stone on creating the petition, which received such a large number of signatories. It is great to see so many Members join this Westminster Hall debate, which builds on a previous debate on the Floor of the House. We have heard many passionate and principled speeches on a matter that should rightly concern all of us. Those speeches illustrate a shared desire to protect our democracy from those who would seek to disrupt it, and they help to illuminate our path forward on this vital agenda.

We inherit a precious democracy forged through centuries of struggle and reform. The Reform Act 1832 began to address electoral inequalities, and the Representation of the People Acts 1918 and 1928 extended suffrage to all adults, regardless of gender or property ownership. Our democracy has continued to evolve. The Government intend to continue that tradition by widening participation and extending the electoral franchise to 16 and 17-year-olds.

Over the years, our democracy has shown its resilience and ability to adapt to challenges. Faced with concerns about undue influence in politics, Parliament has repeatedly risen to the occasion. The Political Parties, Elections and Referendums Act 2000 is a great example. The Act addressed concerns held then about political funding and established our modern regulatory framework. The UK has shown its capacity to preserve the core principles of democracy as the world changes and new threats emerge. Today, as democracies all over the world confront the challenges of foreign interference, we must again be vigilant and take action to safeguard what is precious.

Foreign money has no place in the UK’s political system, which is why the law is clear that foreign donations are not permitted. The only exception is for donations from certain Irish sources to Northern Irish political parties. That exception 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 via proxies.

Although it is clear that foreign donations to political parties and other campaigners are illegal, the Government recognise the continued risk posed by actors who seek to interfere in our democratic process. The current rules no longer match the sophistication and perseverance of those who wish to undermine our laws, and that threat must be addressed through stronger safeguards. That is why the Government committed in our manifesto to

“strengthening the rules around donations to political parties”,

including through enhanced safeguards against foreign donations. We are considering a series of new measures that would achieve that, such as enhanced checks by recipients of donations and tighter controls on donors, including more restrictions around company donations.

Many Members raised the notion of restricting the size of individual political donations. The Government do not plan to introduce such restrictions, as we are rightly focused on safeguards that protect against the threat of foreign interference. I mentioned at the start that we must protect what is hard won. It is vital that those who play a crucial role in our democracy can fundraise effectively and communicate their ideas with the electorate. Those who choose to participate in electoral campaigns must follow the strict accounting and transparency rules that apply to political donations, and the strict spending limits for election campaigns.

Members have mentioned the important role that the Electoral Commission plays in the UK’s democratic system as the regulator of political finance. The robust enforcement of political finance rules is crucial to promoting public confidence in our democratic processes, ensuring their integrity, and combating the threat of foreign interference. That is why we have also committed to reviewing the powers of the regulator to ensure that it has the tools necessary to fulfil its duties. I can assure Members that we are currently weighing evidence from stakeholders, including recommendations from the Public Administration and Constitutional Affairs Committee, the Committee on Standards in Public Life and the Electoral Commission. [Interruption.]

[Carolyn Harris (in the Chair)]

Order. The debate is now suspended for Divisions. We will suspend for 15 minutes for the first vote and 10 minutes for every subsequent vote. Everyone who has spoken in today’s debate is expected to return for the winding-up speeches.

--- Later in debate ---

On resuming—

[Rushanara Ali]

I want to sum up some of the contributions made by colleagues. I am particularly grateful to my hon. Friend the Member for North Ayrshire and Arran, who of course opened the debate, for the points in her speech; to the Chair of the Petitions Committee, the hon. Member for Caithness, Sutherland and Easter Ross (Jamie Stone) for his contribution; and to my hon. Friend the Member for Penrith and Solway (Markus Campbell-Savours). I thank the hon. Member for Tewkesbury (Cameron Thomas) for his contribution, as well as other hon. Members—I hope I am not missing colleagues out—including my hon. Friend the Member for Bolton West (Phil Brickell).

There were some excellent contributions about some of the outstanding issues that we need to address, as a Parliament and a Government, by my hon. Friends the Members for Clapham and Brixton Hill (Bell Ribeiro-Addy), for Stroud (Dr Opher), for Bournemouth East (Tom Hayes) and for Glasgow North East (Maureen Burke), and, of course, by the Front-Bench spokespeople, the hon. Members for Stratford-on-Avon (Manuela Perteghella) and for Ruislip, Northwood and Pinner (David Simmonds).

Various questions were raised in the debate. In relation to the issues surrounding donations, we recognise that further work needs to be done. The Government are concerned about the growing threat of foreign interference and are focused on ensuring that we have systemic resilience and institutional strength. Of course, any suspected breaches of the rules, now or in the future, will remain a matter for the Electoral Commission or the police.

A number of colleagues mentioned donations from overseas electors. As has been mentioned, the franchise change for British citizens living overseas came into effect on 16 January 2024, removing the 15-year limit on overseas citizens’ voting rights. Overseas voters have the right to participate in UK parliamentary elections, and that includes the right to donate to the parties or candidates they support, but foreign money is not permitted, and it is a criminal offence to facilitate an impermissible donation. Political parties can accept donations only from registered electors, and overseas electors are subject to the same counter-fraud measures as domestic electors, including having their identities confirmed as part of the registration process. Colleagues asked questions relating to the 15-year rule; we have no plans to reintroduce it.

A further question was raised about increasing the maximum fine that the Electoral Commission can impose for breaches of the political finance framework. As I stated earlier, robust enforcement of political finance rules by the Electoral Commission is crucial for maintaining public trust in our electoral system. As I said, that is why, as part of delivering on our commitment to strengthen the rules around political donations, we will look at any changes that are necessary to ensure that enforcement provides a clear deterrent against breaking the law, while remaining proportionate.

The strategy and policy statement was raised. We recognise the vital role that the Electoral Commission plays in the UK’s democratic system, promoting public confidence in the democratic process and ensuring its integrity, and this Government are committed to strengthening our democracy and upholding the integrity of elections. The current strategy and policy statement does not reflect the Government’s priorities, and we will not keep it in its current form. Alongside our broader electoral reforms to strengthen democracy, we will be reflecting on what actions are necessary in relation to the statement in the coming months.

Hon. Members raised the issue of safeguards against political donors being given favourable treatment in relation to Government contracts—for instance, PPE contracts. The Procurement Act 2023 strengthens existing obligations in respect of conflicts of interest. Contracting authorities must take all reasonable steps to identify, mitigate and keep under review conflicts and potential conflicts of interest. Where a conflict of interest puts a supplier at an unfair advantage, and if steps to mitigate it cannot avoid that advantage, the supplier must be excluded from that procurement.

Hon. Members raised the issue of foreign nationals being allowed to donate in UK elections. Electoral law ensures that only those with legitimate ties to the UK can donate. That includes people of varying nationalities who are established in the UK and are legitimately entitled to vote in certain elections, such as resident Commonwealth citizens. We do not propose to renege on that principle; instead, we are focusing our efforts on the real risk of foreign interference coming from external actors with no such legitimate links.

Reference was made to lobbying. The Transparency of Lobbying, Non-Party Campaigning and Trade Union Administration Act 2014 ensures that there is transparency around meetings between Ministers and external groups. When it comes to foreign influence, additional controls are being implemented through the foreign influence registration scheme that will require those being directed by a foreign power to carry out, or arrange for others to carry out, political influence activities to register with the scheme.

I look forward to continuing discussions with colleagues, and I am happy to follow up in writing if there are outstanding issues that I have not been able to address.

[Tom Hayes]

The Labour party was elected on a manifesto that committed to giving 16 and 17-year-olds the vote; the Minister referred to this earlier. Can she confirm that we will give 16 and 17-year-olds the vote, and perhaps set out a rough timetable for when that might happen?

[Rushanara Ali]

We have already set out our plans in Parliament, and before the summer recess we will set out a strategy in relation to what we intend to do, including the legislation.

[Cameron Thomas]

I am delighted to hear that the Government will give 16 and 17-year-olds the right to vote. Do the Government intend to appropriately educate 16 and 17-year-olds about the right to vote?

[Carolyn Harris (in the Chair)]

Order. I do not think I should have allowed that first intervention, and I certainly should not have allowed the second. This is completely out of scope. Can we stick to the motion?

[Rushanara Ali]

Hon. Members have raised a number of issues. That particular point is important, and I have addressed it in other debates in Parliament.

I look forward to working with colleagues across parties on the subject we are debating today, as well as on the broader democracy agenda. We will get this work done well only if we work across parties as much as possible, while recognising, of course, that there will be some differences. I think we can all agree that if we want the next generation to be prepared and active in our democracy, we must work together to ensure we get this agenda right.

I reiterate my commitment to working with colleagues on this important agenda. The work to protect our democracy is a cross-cutting and UK-wide effort that extends beyond political finance regulation. Working with the intelligence agencies, the devolved Governments, the police and external partners, we remain vigilant against the full spectrum of threats, from cyber-vulnerabilities to the spread of misinformation and disinformation. Before the summer recess, we will publish a comprehensive document outlining the Government’s approach to electoral reform for this Parliament. Once again, I thank hon. Members across the House for their contributions to this important debate. I believe we all want a robust, vibrant and representative democracy, and that means taking the necessary steps to ensure we safeguard ourselves against foreign interference and uphold the integrity of our elections.