Foreign Financial Influence and Interference: UK Politics

Steve Reed Excerpts

Wednesday 25th March 2026 Written Statements

[The Secretary of State for Housing, Communities and Local Government (Steve Reed)]

This Government are committed to strengthening our democracy and upholding the integrity of elections, as set out in our 2024 manifesto. We have already made progress on this, with our strategy for modern and secure elections published in July 2025, setting out the actions that we will take to simplify, protect and promote our valued democracy.

The Representation of the People Bill, currently being considered by Parliament, will bring in protections against foreign interference, improve political funding transparency, add tougher checks for political donations and close loopholes—increasing public confidence in the integrity of our democratic institutions.

However, we cannot ignore the fact that vulnerabilities in the UK’s political and electoral systems, particularly with politicians being targeted by foreign states, were exposed in the sentencing for bribery in November 2025 of former MEP Nathan Gill, alongside other recent cases. It is therefore right that we urgently consider whether our firewall is enough.

In December 2025 I commissioned former permanent secretary Philip Rycroft to lead an independent review into foreign financial influence and interference in UK politics. Mr Rycroft has now provided the outcomes of the review to myself and the Security Minister, and today we have laid before the House, using the unopposed return procedure, and published on gov.uk the independent review into countering foreign financial influence and interference in UK politics.

The Government welcome Philip Rycroft’s comprehensive, thoughtful and well-reasoned report on foreign financial interference in our democracy. We are taking immediate steps to implement his recommendations for a cap on donations made by overseas electors and for a moratorium on donations made via cryptocurrency, which we will implement through the Representation of the People Bill.

Specifically, we will introduce amendments to the Bill to:

Cap the total value of donations or regulated transactions that an overseas elector can make to, or enter into with any, one or more regulated recipients at £100,000 per calendar year. This cap is a “per elector” cap, meaning that the value of any donations to, or regulated transactions involving, any regulated recipients during the calendar year involving an overseas elector will count towards the cap as it applies to that elector.

Establish a complete moratorium on the making of cryptoasset donations to any regulated recipient, until such point that Parliament and the Electoral Commission are satisfied that there is sufficient regulation in place to ensure confidence and transparency in donations being made in this way. The moratorium will apply to any donation of any value, including donations of a value that would ordinarily fall below the threshold for the controls on donations.

We intend for these measures to apply to all regulated recipients of political donations, and to apply to all elections in the UK. This means that it is intended that the measures will apply to:

Any donation to a registered political party regulated under part 4 of the Political Parties, Elections and Referendums Act 2000 (PPERA);

Any controlled donation to a member of a registered political party, a members association or the holder of a relevant elective office—i.e. an MP; a Member of the Scottish Parliament, Senedd or Northern Ireland Assembly; a police and crime commissioner; a member of a local authority or the Greater London Assembly; the Mayor of London or an elected mayor—regulated under schedule 7 to PPERA;

Any regulated transaction involving a registered political party, a member of a registered political party, a members association or the holder of a relevant elective office regulated under part 4A of or schedule 7A to PPERA;

Any relevant donation to a recognised third party regulated under schedule 11 to PPERA;

Any relevant donation to a candidate at any election in the UK—i.e. a candidate at a UK parliamentary election, a Scottish parliamentary election, a Senedd election, a Northern Ireland Assembly election, a local government election in England, Wales and Scotland, a local election in Northern Ireland, a Greater London Assembly election or an election of the Mayor of London, or an election of a police and crime commissioner in England and Wales—regulated under schedule 2A to the Representation of the People Act 1983, schedule 3A to the Electoral Law Act (Northern Ireland) 1962 or equivalent provision under secondary legislation;

Any relevant donation to a permitted participant to a referendum to which part 7 of PPERA or the Referendums (Scotland) Act 2020 applies;

Any relevant donation to an accredited campaigner at a recall petition under the Recall of MPs Act 2015.

In Scotland and Wales, donations to candidates—rather than parties—are devolved matters, but my intention is to seek a legislative consent motion for our amendments, to ensure that there are no gaps in our safeguards. I will also speak to my counterparts in the Scottish and Welsh Governments to emphasise my commitment to work together to protect our electoral system across the UK.

Critically, the amendments to the Representation of the People Bill will make it clear that, when the legislation comes into force, both of these changes will be applied retrospectively from today. The measures will therefore apply in respect of donations received from today and regulated transactions entered into from today—and for the purpose of the cap on donations from regulated transactions involving overseas electors only such donations or regulated transactions are to be taken into account when determining whether the cap has been reached in respect of any overseas elector.

Political parties and other regulated recipients will need to consider carefully any donations or regulated transactions to which these measures will apply from today until the provisions in the Bill that relate to these measures come into force. A regulated recipient should refuse any donation—or choose not to enter into a regulated transaction—where the donation or regulated transaction would be considered impermissible as a result of these two measures once enacted.

Once the provisions of the Bill for these two measures come into force, a regulated recipient will then have 30 days to return any unlawful donations that they may have received and inadvertently accepted in the interim, or to pay back any money owed under transactions inadvertently entered into or rendered void, after which enforcement action can be taken.

The Government support the wider conclusions drawn by Philip Rycroft on the risks in our system and will reflect swiftly on how best to take these forward, given their more technical nature. We will respond, formally and in full, in advance of Commons Report stage of the Representation of the People Bill.

[HCWS1459]