Question to the Ministry of Housing, Communities and Local Government:

To ask His Majesty's Government what assessment they have made of the potential impact of (1) the new profit test and the company ownership provisions in the Representation of the People Bill, and (2) the latest Electoral Commission guidance on sponsorship, on the income of political parties.

As set out in Representation of the People Bill Impact Assessment, Table 9, we estimate that around 31% - 34% of donations from companies made in the year prior to the 2024 General Election would not meet the permissibility criteria. All businesses, including small businesses, will need to meet strict new criteria in order to make political donations. Requiring donors to demonstrate a genuine UK connection is key in protecting against foreign actors from using shell companies to channel foreign or illicit money into UK politics.

The Political Parties, Elections and Referendums Act 2000 (PPERA) sets out the framework governing political donations and controls on permissible sources of funding. This includes provisions relevant to sponsorship and other forms of support provided to political parties. The Electoral Commission is independent from the Government and is responsible for assisting in compliance with electoral law, including the political donations framework, and provides guidance and support to those subject to it.