Like many other politicians, I too have received political donations. I received donations from Unite the Union and The Communications Workers Union, and therefore I know how much politicians and political parties rely on donations to help get their message across to the public. However, there is no place for foreign interference and influence in our democracy, and an incredible number of donations are coming from suspicious sources.
I was shocked to read the Transparency International UK research which found that since 2001 almost 1 in 10 pounds reported by political parties and their members has come from unknown or questionable sources.
Part of my role on the Petitions Committee is presenting e-petitions which have gathered over 100,000 signatures and introducing the debate. It is a privilege to be part of the democratic process and have UK citizens voices heard in the House of Commons.
I met with the petition creator, and the Electoral Commission in preparation for the debate. It is incredibly important to hear from the people who have the incentive to create and grow the petitions on issues they care deeply about, and to learn about their motivations. Dissatisfaction with democracy is at its highest level for over a century, and the proportion of people who think that politicians are only out for themselves is growing. It is key that we listen to the population about what they think is going wrong with political donations and transparency.
The Electoral Commission is the independent regulator for our elections and political finance in the UK. However, the independence of the Electoral Commission has been constrained in recent times. The Elections Act 2022 banned it from prosecuting any criminal offences under electoral law, considering this to be duplicate of the work of the Crown Prosecution Service and Public Prosecution Service Northern Ireland. This Act also meant that Ministers can also now set the Electoral Commission’s strategy and policy priorities through their own ‘Strategy and Policy’ Statements.
There are many differing ideas and strategies from independent experts on how we can reform the rules on political donations. While foreign individuals are not permitted to donate to UK political parties, there are ways to get around this, and this is of great concern. A multinational corporation, which is owned by a foreign national, would legally be able to donate to a UK political party. Alternatively, they could donate to an unincorporated association, which are permissible donors but do not need to conduct permissibility checks on their own donors.
The Electoral Commission has recommended that this loophole could be amended by ensuring that parties and campaigners may only accept donations from companies that have made enough money in the UK to support their donation. Similarly, the Committee on Standards in Public Life have said that company donations should not exceed net profits after tax generated in the UK within the preceding two years.
The petition also asked for the limits on the fines for breaking the rules to be reviewed. Currently, the maximum fine for a breach of the rules that the Electoral Commission can impose is £20,000. For those who are donating millions of pounds, a fine of £20,000 is less of a deterrent, and more of a transaction fee.
Our democracy cannot be for sale. The current rules we have on donations are based on a 1998 report by the Committee on Standards in Public Life, called “The Funding of Political Parties in the United Kingdom.” The report summarised its purpose by saying “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.” In a modern and ever-changing world, we cannot lose sight of the original principle of the rules, and how they complement the Seven Principles of Public Life for public officeholders.
At the end of the debate, the Minister clarified that the Government would publish a document outlining their approach to electoral reform for this Government before the summer recess. It is clear that now is the time to address these loopholes, for the urgent restoration of faith in our democratic processes, and I am looking forward to hearing the outcome.
Now is the time for political donations rules reform
