The UK government is set to announce new measures to prevent foreign money from influencing elections, closing loopholes that allow donations through shell companies. The reforms, to be unveiled on Thursday, will require political parties to conduct enhanced checks on donors and ensure contributions come from legitimate UK sources.
Under the plans, companies making political donations must prove they generate income in the UK or Ireland. Donor organisations known as 'unincorporated associations' will need to verify that all contributions over £500 are from allowable sources. Fines for breaches will rise to up to £500,000, with false declarations becoming a criminal offence.
Minister for Democracy Rushanara Ali stated: 'The world is changing and the threats that risk undermining our democracy are evolving too. We must strengthen the protections to help reduce those risks.' The changes follow calls from the Committee on Standards in Public Life and the Electoral Commission for tighter regulations.
The reforms stop short of imposing donation caps or banning cryptocurrency donations, despite concerns raised by campaigners and Cabinet Office minister Pat McFadden. However, government sources confirmed that strengthened rules on foreign interference will apply to digital currencies.
The elections paper is also expected to support votes at 16 and encourage voter registration, alongside the political financing changes.
