Irene Campbell

I absolutely agree that we need to see change; my right hon. Friend makes the point very well. More recently, as people will be aware, Elon Musk proposed to donate a large sum to Reform UK. While he could not make a personal donation, there are ways that he could get around the rules, which I will describe. The current rules on donations to political parties are defined in the Political Parties, Elections and Referendums Act 2000, which is based on the 1998 report by the Committee on Standards in Public Life, “The Funding of Political Parties in the United Kingdom”. A lot of what I have said already demonstrates how complex this area is. The Committee summarised the purpose of the rules by saying that “what happens here is the concern of those who live and work here and the political parties should not be entitled to fill their coffers with donations from abroad, made by persons and corporations who have no genuine stake in the country.” More recently, the Elections Act 2022 changed the electoral rules, removing the 15-year limit on the voting rights of British citizens living overseas to vote in UK parliamentary elections, and allowing them to register on the electoral roll and donate to political parties without a time limit. To be clear, under current UK electoral law, foreign donations are banned as they are not a “permissible source.” Permissible sources include individuals on the UK electoral register, UK registered companies, trade unions, unincorporated associations and limited liability partnerships, or LLPs. It is worth noting that, under the rules, parties can accept donations or loans with no upper limit, as long as they come from one of those permissible sources. Donations are defined as “money, goods or services given to a party without charge or on non-commercial terms, with a value of over £500.” There are additional rules around the thresholds for party headquarters and local accounting, but I will not go into detail because they are not straightforward. There are ways for foreign individuals to get around those rules. For example, a multinational corporation owned by a foreign national could legally donate to UK political parties. Additionally, unincorporated associations, which are permissible donors, do not have to conduct permissibility checks on their own donors, leading to a lack of transparency in their donations.