The UK government is introducing new safeguards on Monday to tighten the cap on political donations exceeding £100,000 from overseas donors, a move that could significantly impact Reform UK. Individuals returning to the UK will now be subject to the cap for at least a full calendar year after relocating, closing a loophole that previously allowed donors to avoid restrictions by registering to vote overseas.
How the new cap works
Under the new rules, a donor who moves to the UK in July 2026 must remain in the country for the rest of 2026 and the entire calendar year of 2027 before they can donate above the £100,000 threshold. They would become eligible to make larger donations from January 1, 2028. The measure aims to prevent foreign money from influencing UK elections.
Impact on Reform UK
The crackdown is expected to hit Reform UK, which has received £15 million in donations from Thai-based crypto billionaire Christopher Harborne. Harborne recently registered to vote in the UK, having previously commented on Labour’s efforts to curb foreign donations, saying, “Where there’s a will, there’s a way.” Of the £18.6 million donated to Reform last year, some £15 million came from donors with offshore links, representing almost 80% of the party's total donations.
Additional measures
Other reforms include stronger tests on company donations, new transparency requirements for candidates, and the closure of loopholes that could be exploited for election interference. Company donations will be restricted based on profit, ensuring only legitimate UK-linked businesses can donate transparently. The government is also introducing penalties for politicians and parties that fail to comply: fines of up to £20,000 from the Electoral Commission or up to seven years in prison for serious offences.
Background and response
The reforms, introduced through amendments to the Representation of the People Bill, follow a review by former top civil servant Philip Rycroft into foreign financial interference. The government's full response to the review is being published on Monday. In March, the government also paused donations via cryptocurrency until sufficient regulation is in place.
Communities Secretary Steve Reed said: “British democracy is not for sale. These tough new rules will shut down dodgy funding, stop foreign money influencing our elections and keep our democracy strong. By holding overseas donors to tougher standards and requiring candidates to prove where their funding comes from, we are taking world-leading action to protect the integrity of our elections and tackle the threats we face from abroad.”
Donation comparisons
Reform’s donations this year far outstripped those of other parties. Labour raised £4 million, the Conservatives £4.2 million, the Liberal Democrats £3,019,235, and the Green Party just £263,884 during the same period.
