Sojan Joseph

It is a real pleasure to see this Bill back on the Floor of the House. I pay tribute to my hon. Friend the Member for Chester North and Neston (Samantha Dixon) for her work on the Bill—it was a pleasure to serve with her in Committee—and I congratulate the Minister for Homelessness, Democracy, Communities and Faith, my hon. Friend the Member for Vauxhall and Camberwell Green (Florence Eshalomi), on her appointment. As was acknowledged on Second Reading, there are significant concerns about the potential for cryptocurrency donations to undermine the integrity of our politics. These concerns were raised by many Government Members in Committee too, and we were reassured that amendments would be brought in at this stage. These concerns are not least because it can be difficult to determine the true source of the funds. During the Bill’s earlier stages, the Government committed to incorporating the findings of Sir Philip Rycroft’s review and ensuring that the recommendations were reflected in the legislation. I welcome the fact that Ministers took the time to do that, leading to Government new clause 72. This new clause would prohibit UK-registered political parties from accepting donations made in cryptoassets. Any donation made wholly or partially in cryptoassets would automatically be treated as coming from an impermissible donor, and therefore could not be accepted. The Government are proposing that parties take reasonable steps to identify anyone attempting to make a cryptoasset donation and, where such donations are received, to return them or otherwise dispose of them in accordance with the existing rules governing prohibited donations. New clause 72 also introduces a statutory definition of “cryptoasset” and gives the Secretary of State the power to update the definition through regulations. This is a sensible and proportionate measure. Since the Political Parties, Elections and Referendums Act 2000 was passed at the start of the century, the financial landscape has changed considerably, most notably through the growth of cryptocurrencies. This has created new challenges for regulators, law enforcement agencies and those responsible for maintaining public confidence in democratic institutions. After listening to many colleagues today, I think that some concerns remain unaddressed, so I hope that the Minister will address those that have been raised and close all the loopholes that have been mentioned. Government new clause 116 would introduce an annual cap of £100,000 on political donations and certain regulated transactions from overseas contributors. The cap would apply to individuals registered as overseas electors and certain individuals who are on the UK electoral register but have spent time living outside the United Kingdom. It is, of course, welcome that British citizens living abroad for more than 15 years have since 2022 been entitled to vote in UK elections once again. However, as Philip Rycroft noted in his review, while British citizens living overseas can legitimately participate in UK democracy and make political donations, donations from overseas electors present additional risks that need to be managed. We have heard numerous concerns in this debate, and I hope that Ministers will look again into those concerns and address the loopholes.