Political Donations

Debate between Rushanara Ali and Carolyn Harris

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 ---

[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.