Crackdown on foreign donations welcome, but bolder action needed to end corrupting influence of big money

Transparency International UK has welcomed today’s announcement of strengthened controls to prevent foreign donations but warns bolder reforms are needed to address corrosive effects of big money in politics.

Today’s statement is an important recognition by the government that the systems governing our elections require urgent reform. However, as they stand, bolder action is needed to address the rising threat of the mega-rich buying political influence.

Measures against foreign interference including stronger controls on company donations and unincorporated associations, increased sanctioning powers for the Electoral Commission and new checks on donors  are welcome and necessary but insufficient to safeguard our democracy. The elephant in the room remains untouched – a growing arms race in election spending that is fuelling political parties' dangerous dependence on a handful of billionaire backers.

With 66% of private political donations in 2023 coming from just 19 mega donors political access, influence and honours risk being sold to the highest bidder.

The announcement comes as the Electoral Commission today confirmed that spending at the 2024 UK general election reached a record high of £92 million - £25 million higher than in 2019 (a 38% increase). 

Changes to the law in 2022, which allow inappropriate government interference in the Electoral Commission as an independent regulator and undermine its ability to enforce the rules, also remain in place. 

Duncan Hames, Director of Policy, Transparency International UK said:

“It’s good to see the Government address the vulnerabilities we have identified to the threat of foreign interference in our politics. However, these proposals duck the wider issue of political parties’ growing reliance on a small number of ultra-wealthy donors and the corrupting influence of big money in our politics.”  

Around the world, democracies face growing threats from hostile foreign states and billionaire influence. While other countries like Australia have responded with meaningful reforms introducing donation caps of $50,000 for federal elections, Britain lags behind, leaving our democracy vulnerable.

“From Europe to the US, free and fair elections are under a growing assault from hostile foreign states and the spending power of billionaires,” Hames warned “The government should use their Elections and Democracy Bill to meet this challenge before it’s too late. “

Transparency International UK is calling on the government to take action to strengthen its proposals by: 

• End the influence of big money on UK politics with limits on individual donations and reduced spending limits for political parties
• Increase the transparency of donations in our politics by reducing the reporting thresholds.
• Restore the independence of the Electoral Commission, to future-proof the integrity of elections. 

Today’s announcement comes on the anniversary of Labour’s first King’s Speech in which Prime Minister Keir Starmer declared that "the fight for trust is the battle that defines our political era" and committed his government to sweeping reforms to restore public trust in politics. 
 

This article was amended on 17 July 2025. An earlier version stated the Australian donation cap stood at £50,000 not $50,000.