Phil Brickell

Phil Brickell

Labour — Bolton West

Speaking in the House of Commons on 31 March 2025

Debate

Political Donations

Contribution

I agree that we need to move across the entirety of the United Kingdom to clean up our politics. Time waits for no person, so we must act now. With that in mind, I would like to propose five key reforms, which I gently ask the Minister to consider. First, and most importantly, the campaigning organisation Spotlight on Corruption has called for “know your donor” checks, which would legally require political parties to conduct thorough checks on the source of donations. If a donor’s origins cannot be verified, that donation should be rejected outright. As a former compliance professional for more than a decade myself, I know that such checks can be proportionate and risk based, avoiding excessive administrative burdens. This approach would align with anti-money laundering practices already established in the private sector and mirror existing requirements in the charity sector. If charities must conduct due diligence on their donors, why should political parties be exempt? Secondly, has the Minister considered reducing the donation reporting thresholds to bring more donations into light? Coupled with the “know your donor” checks, I think that would improve scrutiny and put off lower-value donations from dubious sources. Thirdly, there is a glaring loophole around shell companies. Under current rules, companies that have never turned a profit in the UK can still donate to political parties. That is an obvious weakness for potential foreign influence, and I am yet to hear a convincing argument as to why it is permitted. The solution is simple: the Government should mandate that a UK-registered company can only donate from the UK profits that it makes. That seems like a principle we can all get behind, and it would go a long way to protecting our much-cherished democracy. Fourthly, as we have already heard, we must address the role of unincorporated associations, which provide a potential trapdoor for dark money entering our politics. Currently, candidates are not required to verify the ultimate source of donations received through these associations, effectively creating opaque slush funds. Forcing unincorporated associations to conduct better checks on the sources of the original donations would very quickly put an end to that risk. Fifthly, despite the current political financing laws being riddled with loopholes, they are not even enforced properly. The Tories neutered the Electoral Commission and stripped it of its independence in the Elections Act 2022. What better way to return politics to service than by equipping the commission to hold all parties, including my own, to account? We could start by increasing its capacity for deterrence, by putting up its fining powers. In this era of plutocrat donors, the current paltry fines that the Electoral Commission can impose are hardly going to put wrongdoers off. As I understand it, enhancements to the regime in that respect would not even require primary legislation. This is an existential issue for our politics. It is not about one person, one party, one donor or even one jurisdiction. Transparency International UK has found that between 2001 and 2024, nearly £115 million in political donations came from unknown or questionable sources, with £1 in every £10 donated to political parties having an unclear origin. Reflect on that for a moment. It is simply unacceptable. The early signs are positive, and I thank the Minister for her engagement with myself and colleagues on this matter already. It demonstrates that the Government understand why today’s debate is crucial. Failing to act sends a dangerous message that British democracy is for sale; we cannot and must not allow that to happen.

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