Ellie Chowns Portrait Dr Chowns
- Hansard - - - Excerpts

I beg to ask leave to withdraw the motion.

Clause, by leave, withdrawn.

New Clause 30

Cap on political donations

“(1) Part 4 of PPERA 2000 (control of donations to registered parties and their members etc) is amended as follows.

(2) After section 54B (Declaration as to whether residence etc condition satisfied) insert—

‘54C Power to set cap on political donations

(1) A registered party must not accept a donation from a person if the value of donations from that person during the course of that calendar year exceeds the maximum amount specified by regulations made under subsection (3).

(2) Where a registered party receives a donation which would cause the limit for the purposes of subsection (1) to be exceeded, the amount by which the limit is exceeded is to be treated for the purposes of this Act as a donation received from a person who is not a permissible donor.

(3) The Secretary of State must by regulations specify the donation limit for the purposes of subsection (1) within three months of the day on which this act is passed.

(4) A statutory instrument containing regulations under this section may not be made unless a draft of the instrument has been laid before and approved by a resolution of each House of Parliament.

(5) Before laying a draft statutory instrument containing regulations under this section, the Secretary of State must commission an independent review of the level of the cap on political donations.

(6) The review must consider and make recommendations on the level of the cap in light of—

(a) the prevailing economic conditions;

(b) the effect of the cap on democratic participation and political competition; and

(c) any other matters the Secretary of State considers relevant.

(7) The Secretary of State must appoint an independent person or panel with relevant experience to conduct the review.

(8) The person or panel appointed under subsection (7) must—

(a) consult the Electoral Commission and any other persons the person or panel considers relevant; and

(b) prepare and publish a report of its findings.

(9) The Secretary of State must lay the report under subsection (9)(b) before both Houses of Parliament as soon as practicable after receiving it.

(10) No later than three years after a report under subsection (10) has been laid the Secretary of State must commission a new review under subsection (5) for the purposes of determining whether the cap under subsection (1) should be amended.’”— (Zöe Franklin.)

This new clause requires the Secretary of State to set an annual cap on permissible political donations from a person, following an independent review to be conduct every three years.

Brought up, and read the First time.

Zöe Franklin Portrait Zöe Franklin (Guildford) (LD)
- Hansard - -

I beg to move, That the clause be read a Second time.

None Portrait The Chair
- Hansard -

With this it will be convenient to discuss the following:

New clause 54—Proposals for a Royal Commission on political donations and campaign expenditure

“(1) Within three months of the passing of this Act, the Secretary of State must publish proposals for the establishment of a Royal Commission to consider—

(a) the merits of a cap on political donations, and the level at which such a cap should be set, and

(b) the effectiveness of existing limits on campaign expenditure, including the appropriateness of the time period during which those limits apply.

(2) Proposals published under this section must include proposals for the Royal Commission’s—

(a) terms of reference,

(b) membership, and

(c) funding.”

This new clause requires the Secretary of State to publish proposals for a Royal Commission to consider a cap on political donations and the effectiveness of existing campaign expenditure limits.

New clause 58—Review of how limits on campaign expenditure could apply on annual basis

“(1) The Electoral Commission must conduct a review of how campaign expenditure limits could apply on an annual basis for political parties, candidates and third parties.

(2) The review must consider how annual campaign expenditure limits could—

(a) promote transparency and fairness in elections;

(b) limit the risk of foreign interference in elections; and

(c) be implemented in a proportionate manner without undue impact on political parties, candidates and third parties.

(3) In conducting the review, the Electoral Commission must consult the Speaker’s Committee on the Electoral Commission and the Ethics and Integrity Commission.

(4) The Electoral Commission must publish a report of its findings no later than 6 months after the day on which this Act is passed.

(5) The Secretary of State must, within 6 months of the publication of the report, lay before both Houses of Parliament, a response to the report.

(6) The response to the report must contain proposals informed by the Electoral Commission’s report.”

This new clause would require the Electoral Commission to conduct a review of how campaign expenditure limits could apply on an annual basis for political parties, candidates and third parties, and for the Government to respond to the report and bring forward proposals based on the Electoral Commission’s findings.

New clause 65—National limits on campaign expenditure by political parties

“(1) PPERA 2000 is amended as follows.

(2) In paragraph 3 of Schedule 9 (parliamentary general elections)—

(a) in sub-paragraph (2), for ‘£54,010’ substitute ‘£37,600’;

(b) in sub-paragraph (3)(a), for ‘£1,458,440’ substitute ‘£1,015,100’;

(c) in sub-paragraph (3)(b), for ‘£216,060’ substitute ‘£150,390’;

(d) in sub-paragraph (3)(c), for ‘£108,030’ substitute ‘£75,200’;

(e) in sub-paragraph (4), for ‘£54,010’ substitute ‘£37,600’.

(3) In paragraph 2(1) (d) of Schedule 8 (exclusions), after ‘the party’ insert ‘other than those who are employed wholly or mainly for the purpose of an election campaign.’”

This new clause lowers the national campaign spending limits for political parties and includes campaign staff costs within their scope.

Zöe Franklin Portrait Zöe Franklin
- Hansard - -

The new clause, tabled by my hon. Friend the Member for Stratford-on-Avon (Manuela Perteghella), goes to the heart of this basic question: who does our democracy serve—voters or those with the deepest pockets? It would introduce a cap on political donations from any one individual or entity each year, with that cap set following independent review and approved by Parliament. It would ensure that the level is kept under regular review so that it remains appropriate over time. At present, there is no upper limit on political donations in the UK, which is a striking gap in our system that allows vast sums to be given by a single donor, creating the risk of disproportionate influence by an individual.

Already, too many people across the UK look at our politics and see a system that appears to be tilted towards those with wealth and access. They question whether decisions are made in the public interest, or in the interests of those who can afford to make the largest contributions. That is unsustainable, and it undermines our democracy. My hon. Friend wishes to be clear that the new clause is not about stopping people supporting political parties; it is about drawing a reasonable line to ensure that no individual or organisation can dominate political funding simply because of the scale of their resources.

There is also a clear issue with integrity and security. While there are rules on permissible donors, there remain loopholes that allow money to be routed through UK-registered companies and complex structures, which creates a real risk of foreign or opaque influence on our politics. A cap alone would not resolve that problem, but it would significantly limit its scale. The new clause seeks to take a careful, balanced approach to the issue. It does not impose an arbitrary figure, but instead requires an independent, evidence-based review to recommend the level of the cap, considering economic considerations, democratic participation and political competition. It would place that decision firmly within a transparent and accountable process.

Ultimately, elections should be decided by voters persuaded by the strength of arguments, the quality of ideas and the credibility of leadership—I do not think that any member of the Committee would disagree with that. They should not be about the scale of financial backing. If we allow money to operate without meaningful limits, we undermine the fundamental democratic principle that every voice should carry equal weight. I do not wish to press the new clause to a vote, but I would like to hear the Minister’s thoughts on it.

With your permission, Sir Desmond, I will also speak to new clause 54, tabled by my hon. Friend the Member for Hazel Grove. The Committee has established that, unfortunately, public trust in political funding—and sometimes in democracy itself—is at a very low point. With donations in the millions from a handful of wealthy individuals, spending wars between parties and loopholes that undermine the spirit of the rules, there is a public perception that politics can be bought and that elections can be won through the donations of the few. I think we would all agree that that is not a place we want to be.

New clause 54 calls for a royal commission to look at the evidence properly and make recommendations, which would allow for a level of independence and cross-party process. The current system allows single donors to give millions to a party, which raises legitimate questions about whose interests are being served. There are limited financial provisions on long campaigns; significant money is spent well before the official period begins and the limits do not catch that.

The Liberal Democrats have long called for greater transparency in political spending; the real-time disclosure of donations, a cap on political donations and annual expenditure limits sits squarely within that agenda.

Ellie Chowns Portrait Dr Chowns
- Hansard - - - Excerpts

I will speak to new clauses 30 and 54, tabled by the hon. Members for Stratford-on-Avon and for Hazel Grove respectively, which both deal with the important topic of a cap on donations. I will then speak to new clauses 58 in my name and new clause 65 in the name of the right hon. Member for Oxford East (Anneliese Dodds), which both deal with limits on campaign expenditure, as the two topics are closely related.

First, as the hon. Member for Guildford just set out, there is a very strong case for having a cap on political donations, which the Government have recognised to some extent in promising to take forward the Rycroft recommendations on instituting a cap on donations from British citizens living abroad. However, on the broader question of donations from any British voter, the issue of the total amount of donations, and the number of very large donations, has significantly increased over time. The public widely recognise the extent to which political parties—some, in particular—are reliant on funds contributed by a small handful of very wealthy donors, and it is a rightly a cause for concern for a large majority of them. As the public understand, that carries the risk that individuals with very deep pockets can potentially have a disproportionate influence on our politics.

Back in 2011, the Committee on Standards in Public Life produced a report addressing precisely this risk, the problem of increased reliance on significant donations, and recommended a donations cap. That was 15 years ago. The problem has only become more and more significant since then, as we have seen just within the last year with several donations in the many millions of pounds to one political party. This is clearly a problem and a risk to our politics—and a risk that has been recognised worldwide.

As I understand it, about half of countries globally and well over two thirds of European countries impose some sort of limit on donations. The UK was one of I think 22 signatories to a UN resolution in December 2025 that identified the risk of corruption in politics from large donations and called for countries to consider instituting a cap on donations. It would only be consistent with our signing that UN resolution for us to take action on this ourselves.

Philip Rycroft, if I may quote directly from page 29 of his report, identified this problem too. He talked about his worries that the lack of year-round spending limits on campaign expenditure plus the lack of limits on donations could lead to an

“arms race among political parties and actors to out-raise and out-spend their competitors.”

Although he felt that this issue fell beyond his remit, he pointed out that it was

“something that could be usefully debated during the passage of the Representation of the People Bill”,

so I am very glad that a number of colleagues have tabled amendments to allow us to discuss it and to hear from the Government.

This proposal is widely supported by a large number of individuals and organisations that submitted evidence to this Committee—the Electoral Reform Society, Transparency International, Spotlight on Corruption, Open Britain and a whole range of others—and by a number of academics who specialise in this area: Sam Power, who gave evidence to us, Alan Renwick and a number of others. Transparency International points out:

“Other comparable democracies have sought to curb the corrosive influence of big money in politics by setting donation caps…Canada caps donations to political parties at CA$1,750 annually; France caps donations to political parties at €7,500 annually and €4,500 for presidential campaigns; Italy’s cap is €100,000…and Australia has introduced AU$50,000 caps per donor per year, due to apply from July 2026.”

This proposal has been recommended by the Committee on Standards in Public Life, as I have said, and by the Hayden Phillips review, and it is supported by a majority of voters. YouGov polling published in December 2025 showed that 67% of UK voters say that there should be a cap of £50,000 or less, or indeed no private donations at all—some people feel the system should be dealt with like that.

I will briefly pre-empt a point that I suspect the Minister will raise in her response, the fact that some other countries have greater state funding of politics. A balance has to be struck. My case is not that there should be no ability for voters to contribute to politics; arguably, that is an important part of the democratic process. The problem is that in a democracy, in which by definition one person has one vote, money can buy huge amounts of influence that outweigh and hugely influence many of those votes. If a party has received many millions of pounds just in the past six months, it is not surprising that it will have a capacity to spend that in the non-regulated period in a way that is highly likely to influence voting.

There is therefore a strong case for introducing some sort of annual donation cap now. Transparency International advocates for that being £50,000 a year. The CSPL, I believe, advocated for £10,000 a year, although that was 16 years ago; if we multiply that by inflation, it is about £15,000 a year now. Others have talked about £100,000 a year, which would bring the cap in line with the system that the Government have already committed to putting in place for donations from British voters overseas.

There is clearly a problem with the distortion of our political system caused by the influence of big money, big donations in politics, and we have a crucial opportunity, in the passage of this Bill, to take action to address it. On many of the other issues that we have talked about—company donations, the influence of foreign money, crypto donations—I have repeatedly drawn a connection with the need for a cap on all political donations, because those things cannot be completely divorced. We will not be able to address the issues that concern us in relation to the distorting effect of money on our politics if we do not implement a cap on political donations. I look forward to hearing from the Minister on that.

--- Later in debate ---
Samantha Dixon Portrait Samantha Dixon
- Hansard - - - Excerpts

No. I simply stand by my previous comments.

Zöe Franklin Portrait Zöe Franklin
- Hansard - -

I beg to ask leave to withdraw the motion.

Clause, by leave, withdrawn.

--- Later in debate ---
Brought up, and read the First time.
Zöe Franklin Portrait Zöe Franklin
- Hansard - -

I beg to move, That the clause be read a Second time.

None Portrait The Chair
- Hansard -

With this it will be convenient to discuss the following:

New clause 34—Commencement of Section 106 of the Equality Act 2010—

“The Secretary of State must, within three months of the day on which this Act is passed, lay an order under section 216 (commencement) of the Equality Act 2010 to commence section 106 (information about diversity in range of candidates, etc.) of that Act.”

This new clause would require the Secretary of State to commence section 106 of the Equality Act 2010 within three months, which would require political parties to publish information on the protected characteristics of candidates in parliamentary elections, elections to the Scottish Parliament and to the Senedd.

New clause 35—Electoral Commission: Publication of information about diversity in range of candidates—

“(1) PPERA 2000 is amended as follows.

(2) After Section 13A (reimbursement of costs by Scottish Ministers etc.) insert—

‘13ZAA Collection and publication of information about diversity in range of candidates

(1) The Commission shall collect information published under section 106 (information about diversity in range of candidates, etc.) of the Equality Act 2010.

(2) The Commission shall publish the information collected under subsection (1) in an accessible form at such intervals as the Commissioners consider appropriate.’”

This new clause would require the Electoral Commission to collect and publish in an accessible form diversity information required to be provided by political parties under section 106 of the Equality Act 2010.

Zöe Franklin Portrait Zöe Franklin
- Hansard - -

New clause 31 would require the Secretary of State to use regulations to ensure that the Electoral Commission established a fund to help disabled candidates meet additional disability-related campaign costs in England. Historically in England, the access to elected office fund and the EnAble fund provided funding for practical support and reasonable adjustments to remove barriers for disabled candidates standing for election. That could include help with communication, transport or personal assistance, not general campaign costs.

The interim £250,000 EnAble fund was launched in 2018. It involved a two-stage approval process, with an independent panel of experts on disability as well as the political groups of the Local Government Association. In total, 41 candidates were awarded funding and 45% of those were elected. In the 2022 Scottish local elections, 46 people got support from a similar fund available in Scotland; of those, 22 were elected.

Based on those numbers, I would suggest that the types of funds that provide support make a tangible difference. However, the English fund was discontinued in 2020 and, although I understand the Government have indicated that they wish to do something about that, it has not yet been reinstated and an alternative has not been put forward. That leaves a distinct inequality between the different nations of Britain—Wales and Scotland both have funded schemes; England does not.

Representation in politics is crucial, whether here in Parliament or in our council chambers across the country. The House of Commons Library estimates that 25% of the UK population is disabled, with 24% of working adults stating that they are disabled. A truly representative parliamentary House would have 156 MPs indicating that they have a disability, yet only 12 declare themselves as having a disability—less than 2% of Parliament. According to the Local Government Association’s 2022 census, approximately 15% of local authority councillors in England declared a disability or long-term health condition. Essentially, we are consistently not returning a set of councillors or MPs that is truly representative of the people we seek to serve.

In my view, that is a wrong that needs to be corrected. Establishing a new fund in England to provide that support is absolutely crucial. That change is supported by Elect Her, Centenary Action, the Jo Cox Foundation, Unlock Democracy, the Fawcett Society, the Disability Policy Centre and others. This Bill is the opportunity to right this wrong. I would welcome hearing whether the Minister agrees with the new clause. I hope that she will but if she does not, will she outline how the Government plan to support candidates with disabilities and to address this glaring disparity between the nations? We really must do better when it comes to representation of people with disabilities in our politics.

The other new clauses are also important; they continue the theme of ensuring that our democracy is truly representative of the people we serve. New clause 34 would require the Secretary of State to bring section 106 of the Equality Act 2010 into force within three months of Royal Assent.

New clause 35 would place a duty in the Political Parties, Elections and Referendums Act 2000, which is the main law governing political parties, campaign finance, donations and so on, requiring the Electoral Commission to publish the information in an accessible form. It would also give Ministers the power to require registered political parties to publish anonymised information about the diversity of the people coming forward as candidates—for example, information about protected characteristics among applicants, selected candidates and elected candidates. This duty applies only so far as it is possible to publish characteristics while, of course, retaining the privacy of the people it is referencing.

For a long time, we have as a nation talked about ensuring that that information is made available. In March 2026, the Minister for Equalities, the hon. Member for Feltham and Heston (Seema Malhotra) stated:

“The Government is committed to commencing section 106 of the Equality Act 2010, requiring registered political parties to publish anonymised data relating to the diversity of their candidate selections…officials are currently exploring when and how to commence the provision under section 106.”

She said that there would be an update “in due course”. That was then repeated in the House of Lords. That statement took place a while ago, yet we have not seen any movement as yet.

Again, I personally feel that this Bill gives the opportunity to enact that section of the Equality Act. I would therefore like to hear from the Minister whether she supports the amendment and, if she does not, when the Government will bring into force section 106 of the Equality Act.

Ellie Chowns Portrait Dr Chowns
- Hansard - - - Excerpts

I will speak very briefly in support of the three amendments tabled by the hon. Member for Guildford, which highlight really important issues. It seems extraordinary, really, that we have such inequality between England, Wales and Scotland in relation to support for disabled candidates. Clearly, with such huge levels of under-representation of disabled people in our politics, it is imperative that support is put in place to try to rectify that. I fully support the call for the reinstatement of the access to elected office fund.

--- Later in debate ---
Samantha Dixon Portrait Samantha Dixon
- Hansard - - - Excerpts

The hon. Gentleman highlights exactly why further consultation is needed. This is a complex issue, and it needs to be discussed with all the major and minor political parties to explore how candidates are encouraged to come forward and the ways in which we can support political parties to become more diverse. I hope he accepts that response.

I turn to new clause 35. The Government really are committed to better representation, and we have taken a variety of actions to address that. As I have mentioned, section 106 is uncommenced, and we are committed to commencing it with careful consideration and at the appropriate time. I therefore ask the Committee to reject the new clauses, as that process is already in progress.

Zöe Franklin Portrait Zöe Franklin
- Hansard - -

I hear what the Minister is saying, and I am really pleased that the Government are undertaking that process, but what concerns me is that we go through sets of elections again and again without consistency across the nations. Some in our nations are supported to stand so that have a more representative democracy, while others—here in England—are not.

I am willing to withdraw my new clause, but I would appreciate it if the Minister committed to sharing a timeline. More importantly, will she commit to making information more available publicly—certainly to organisations working in this space and MPs—about what is happening about a fund to support candidates with disabilities? The same applies to my new clauses about section 106 of the Equalities Act.

One of the reasons why the new clauses had to be tabled is that, although the Government have said things on the public record, they have not shared what is happening behind the scenes. This is a matter of public interest. I will not press the new clauses to a vote, but I would appreciate it if the Minister came back on those queries.

Samantha Dixon Portrait Samantha Dixon
- Hansard - - - Excerpts

I will write to the hon. Lady and provide as much information as I can.

Zöe Franklin Portrait Zöe Franklin
- Hansard - -

I beg to ask leave to withdraw the motion.

Clause, by leave, withdrawn.

New Clause 33

Impact of the Act on trust in elections

(1) The Secretary of State must, within 12 months of the passing of this Act, publish and lay before both Houses of Parliament a report into the impact of the Act’s provisions on trust in elections.

(2) Any report made under subsection (1) must make proposals on any further measures required to increase trust in elections.

(3) For the purposes of this section, “trust in elections” includes public confidence in the fairness of elections, the voting systems used, and the representativeness of election results.

(4) In preparing the report, the Secretary of State must consult—

(a) the Electoral Commission;

(b) the Scottish Ministers;

(c) the Welsh Ministers;

(d) the relevant Northern Ireland department; and

(e) such other persons as the Secretary of State considers appropriate.”—(Zöe Franklin.)

Brought up, and read the First time.

Zöe Franklin Portrait Zöe Franklin
- Hansard - -

I beg to move, That the clause be read a Second time.

As has come up repeatedly in the Committee, trust in elections is in a very difficult place at the moment. As MPs, we really need to consider how we can address the lack of confidence that the public have in our political system and, frankly, in the voting system that is used and whether the results feel representative. While we continue to face a flood of foreign money and powerful actors working to undermine our social fabric and interfere in public life, we must make sure that we are improving the public’s confidence in the face of those threats.

The requirement to consult the devolved Governments is essential, as this law would apply across all four nations, and trust deficits are not uniform. Scotland, Wales and Northern Ireland must have a voice in assessing the impact in devolved elections. The Government are already taking very welcome steps in the Bill to modernise elections, and we have the opportunity to make further reforms.

One of the most powerful causes of disillusionment within politics is a sense that people’s votes just do not count—that they turn up on polling day and their voice simply disappears into a system that does not reflect it. We believe that any serious review of representativeness has to grapple with that, and that any Bill looking to reform our elections should consider how to change that perception and the voting system to better reflect what or who people are actually voting for.

The Bill presents an opportunity for the Government, but we believe they are grasping it only in part. We need to recognise that the threat is real and urgent. Mis and disinformation and the concentration of power in the hands of too few are undermining public trust. The new clause tabled by my hon. Friend the Member for Hazel Grove seeks to address that. I look forward to hearing the Minister’s comments.

Paul Holmes Portrait Paul Holmes
- Hansard - - - Excerpts

I rise to speak against new clause 33, which we contend is overly restrictive. While the hon. Member frames the new clause as a shield for democracy, in reality it is a recipe for bureaucratic paralysis and a dangerous encroachment on the natural administration of our elections. I refer to the reporting mandate mechanism in new clause 33, which demands that the Secretary of State publishes a report on “trust in elections” within just 12 months. That is a purely subjective academic exercise masquerading as policy.

Trust is not a metric that we can legislate into existence; it is a subjective measure. By forcing the Government to constantly review public confidence, we are effectively inviting the Secretary of State or Ministers to politicise the very foundations of our voting system. That may be the intention of the hon. Lady, but I contend that it is just another mechanism for parties who disagree with our voting system to carp on about it every year. I say to the Liberal Democrats and to other parties that might want new clause 33 to go ahead that we have tested public opinion on new voting mechanisms. As I have said on other Bills, it should be for the Government of the day to put forward changes to the voting system and electoral law in this country.

New clause 33 mandates consultation with Ministers across all devolved nations and the Electoral Commission before a report can even be published. While I respect our devolved partners, we have to accept that it is the policy of Governments in at least two jurisdictions to have different voting systems. In fact, we have different voting systems in those devolved Administrations. It seems to me that the hon. Lady is trying to propose a veto by committee structure. If we try to measure trust in politics, First Ministers and Governments will each put forward different views on whether trust has been measured. How do we measure trust? We can poll, and look at local and national election outcomes.