Money, influence, and the rising costs of UK elections

Newly released data from the Electoral Commission paints a concerning picture of political spending in the UK's recent general election. As we predicted, the 2024 election was the most expensive in modern history and saw candidate spending reach an unprecedented £23 million—significantly higher than the previous record of £16.4 million set in 2019. This surge raises serious questions about the growing influence of money in British politics at a time when public trust in democratic institutions is already at an all-time low.

The Conservative Party candidates led the charge during the post-dissolution period spending £7 million, closely followed by Labour and Co-operative Party candidates at £6.6 million, with Liberal Democrats (£3.2 million) and Reform UK (£1.3 million) trailing behind. Perhaps most surprisingly, independent candidates collectively spent £1.3 million, a threefold increase compared to the previous general election.

What makes these figures particularly concerning is that they represent only half the story. These totals cover just constituency-level spending—the money spent by candidates on their local campaigns. The data on national party spending, which can also include resources poured into key marginal seats, will be released separately, likely revealing an even more dramatic financial picture of the 2024 election. 

The spending arms race

The increase in spending follows the previous government's controversial decision to raise the legal expenditure limits without meaningful consultation or clear justification. This change has had precisely the effect that we and many concerned about political finance warned about: accelerating the political arms race and increasing pressure on parties to seek large donations.

As Transparency International UK has consistently warned, this creates fertile ground for corruption, including cash-for-access, cash-for-influence, and other problematic arrangements that erode public confidence in our democratic system.

The recent speculation about Elon Musk potentially injecting $100 million into Reform UK serves as a stark reminder of how vulnerable our political system is to the influence of ultra-wealthy individuals. This shouldn't be dismissed as a hypothetical concern but recognised as a wake-up call about the current inadequacy of our political finance regulations.

It's time for reform

Transparency International UK’s recent report Cheques and Balances: Countering the Influence of Big Money in UK Politics, offers clear recommendations for how the government could reverse this trend and restore integrity to our political financing system.

Our paper builds on substantial previous work, including two major reports from the Committee on Standards in Public Life over the past 15 years and recommendations from the Electoral Commission. 

There is no shortage of ideas for reform and existing proposals are well-developed including:

• Implementing donation caps to prevent any single donor from having a disproportionate influence
• Lowering campaign spending limits to reduce campaign costs and the pressure to seek large contributions from a small group of wealthy donors
• Strengthening the powers of the Electoral Commission so it can pursue effective enforcement
• Stop funds of unknown origin from making their way into UK politics via unincorporated associations and UK shell companies

Ensuring that, as a minimum, only companies genuinely doing business in the UK can make political donations.

Opportunity for meaningful change

The new government has committed to setting out its position on a forthcoming Elections Bill before the summer recess. This presents the best legislative opportunity in decades to tackle the issue of big money in politics.

Labour's manifesto included a clear commitment to "protect democracy by strengthening the rules around donations to political parties," and ministers have acknowledged the need for reform. Recent parliamentary statements indicate growing cross-party support for substantive change.

The question now is whether ministers will embrace meaningful reform or opt for the path of least resistance by merely tinkering around the edges. The existing framework has remained largely unchanged for 25 years, while new threats to democracy have emerged and old problems have worsened.

With public trust in politics at a low ebb, this is a critical moment for ministers to put national interests above party politics and deliver the reforms necessary to protect our democracy from the corrupting influence of big money. The British public deserves nothing less.