Contribution
I join others in warmly welcoming the Democracy Minister to her place. I know that the Housing, Communities and Local Government Committee will miss her excellent chairing, but it is great to have such a strong ally on these issues in Government.
We have returned to this place after a summer when barely a day has gone by without another political funding scandal on the front pages. As the previous speaker referred to, there have been accusations of impermissible foreign donations, undeclared donations, undeclared gifts, conflicts of interest, undeclared assets, foreign interference and more.
I doubt that anyone in this House could say with confidence that we currently have the right safeguards in place to ensure that dodgy money is kept out of our politics and that sufficient transparency is in place so that the public can judge whether a politician is acting in their interests or in the interests of foreign-based billionaires. That is why this Bill is so important and why so many of the measures in it are welcome.
I am delighted that following the Rycroft review there are amendments to strengthen the Bill, including: the cap on donations from overseas electors; the new residency test to close the potential loophole of people coming back to meddle in our politics; the moratorium on crypto, which will ensure that companies can only donate up to the value of their post-tax profits; and the swift recent action we have seen to look at lower caps on how much parties and candidates can spend during regulated periods. These are all really welcome steps that will help to limit the influence of big money and curb foreign influence.
We have to be alive, though, to the constantly evolving nature of this threat and to ensure that our electoral traditions are not open to abuse. In that spirit, I have a couple of suggestions. I do hope that in the Electoral Commission’s review of spending limits, per the Government amendment, it could also be asked to look at whether the whole concept of the long and short campaign is working to keep spending in check. Candidates have already been selected by parties for the next general election, and many more will be in place by the end of this year, but the long campaign regulated period does not kick in until 4 February 2029. That means, in many cases, more than two years of further uncapped spending, with declaration of interest rules only formally in place for the year before an MP is elected and nothing for candidates who do not win.
This is really important because we know that the reality of modern politics is that campaigning never switches off. I am glad that in this country we have avoided the money-pit of TV advertising that the United States has, but social media means that vast sums of hard-to-trace money can be spent promoting a candidate or party outside of these regulated periods. I am fully supportive of the Government’s intention to bring down the spending cap, and I think that a thorough look at these regulated periods would help to deliver that goal and ensure that capping spending works permanently, not just in those limited periods.
I am also glad that the Prime Minister, the Secretary of State and the Minister have been clear that this Bill is the start of the political reform agenda and not the end. Unfortunately, many of these big money interests and foreign states with malign intent are very good at finding loopholes and working around our laws, and they will continue to do that and adapt once these new laws are enforced. To avoid that risk, the Electoral Commission could also look at donation levels that are currently uncapped to ensure a further check on big money interests.
I welcome the Democracy Minister’s positive engagement on this topic, and I hope that there may be a way to use this Bill to review that issue and build consensus while ensuring that we do not have to wait for a further legislative route in this Parliament, which we all know would be challenging. In that spirit, we do not need legislation to talk about the national commission—we could do that immediately.
As I said, I hope the Bill is the start of the new Administration’s political reform effort and not the end. We all know the context, with plummeting trust, the influence of big money and the fact that many of our voters feel that their politicians are serving not them but other interests. I know that the Minister is committed to going as far as possible. The Bill is in really good shape—it has been strengthened—and I hope that in the summing up from the Dispatch Box we might hear about next steps to take it that little bit further.