Key facts
- New rules will restrict donations from foreign-based benefactors and introduce new checks on donating companies.
- Political candidates will be required to disclose donations above £2,230 for the first time.
- Nigel Farage may face a second investigation into undeclared benefits from crypto entrepreneur George Cottrell.
- The parliamentary standards commissioner is already investigating a £5m donation to Farage from Christopher Harborne.
- The government plans to amend the representation of the people bill with these new rules.
UK ministers are preparing to implement stricter regulations on political donations, aiming to enhance transparency and curb foreign influence in elections. The proposed measures include a one-year cap of £100,000 on donations from individuals who have recently moved to the UK, alongside enhanced checks on the legitimacy of corporate donors. Additionally, political candidates will be required for the first time to disclose donations exceeding £2,230, a rule that will also cover the period before they officially became candidates.
These changes come as Nigel Farage, leader of Reform UK, faces mounting pressure regarding undeclared benefits he received from crypto entrepreneur George Cottrell prior to becoming a Member of Parliament. Cottrell, who has a past conviction for wire fraud, reportedly provided staff, security, and the use of a mansion to Farage. While Farage registered two specific donations from Cottrell, other benefits were not disclosed. Reform UK has maintained that these were personal gifts unrelated to Farage's political activities.
The parliamentary standards commissioner, Daniel Greenberg, is already investigating a separate £5m donation made to Farage by crypto billionaire Christopher Harborne. There are calls for Greenberg to also investigate the allegations concerning Cottrell, potentially consolidating the inquiries. The Liberal Democrats have formally requested an investigation into the Cottrell benefits. Meanwhile, Labour MPs are advocating for more stringent measures, such as an outright cap on all political donations, with MP Stella Creasy planning to introduce an amendment to that effect.
Officials stated that the new rules are designed to prevent donors from circumventing foreign donation restrictions by registering in the UK and to stop businesses from being used as conduits for foreign profits. The proposed amendments are expected to be introduced to the representation of the people bill later this month. The government asserts that these measures will strengthen British democracy by preventing "dodgy funding" and "foreign money influencing our elections."