Political donation reforms duck the big question about big money in British politics

Transparency International UK has welcomed tighter checks on foreign money in UK elections but warned that the government's reforms address the wrong end of the problem, policing who is allowed to donate while doing nothing to limit how much any one person can give.

Responding to the government's full response to the independent Rycroft Review, published today, the anti-corruption organisation said the package leaves the greatest structural threat to British politics - the growing power of a small number of ultra-wealthy donors - entirely untouched.

The measures confirmed today include a time-bound cap on large donations from people who have recently moved to the UK, tougher tests on company donations based on post-tax profits, and new requirements for candidates to prove that campaign funding comes from legitimate sources. They build on reforms announced in March, including a cap on donations from overseas electors and a moratorium on crypto donations.

Transparency International UK warned that, without a limit on the size of donations, wealthy individuals who were previously giving from overseas could simply relocate to the UK, wait out the qualifying period, and resume large-scale donations domestically.

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

"We welcome the Government’s plans to tighten the rules on pre-candidacy and corporate donations, but their cap on overseas donors does not go far enough to protect our democracy or restore trust in our politics.

"How you reform political finance matters. Changes made by the party in government that appear to single out a rival's backers will be seen as partisan. A cap that applies equally to every party and every individual donor, wherever they reside, would be both fairer and simpler. 

"If ministers are serious that British democracy is not for sale, they need to cap the size of political donations, not just ask where donors live. Until they do, the door remains open to anyone wealthy enough to walk through it."

Transparency International UK is backing an amendment to the Representation of the People Bill, expected to be tabled by Stella Creasy MP, which would introduce a £100,000 cap on political donations. The organisation is urging MPs from all parties to support it.

Duncan Hames added:

"There is a straightforward way for Parliament to change this. Stella Creasy's amendment would place a £100,000 cap on donations that applies equally to every party and every individual donor. We urge MPs across the House to back it and finally take big money out of British politics."