LONDON—The British government has announced tighter restrictions on overseas-linked political donations, saying the measures are designed to reduce the risk of foreign influence in elections by strengthening campaign finance rules and closing existing loopholes.
The reforms, published as part of the government's response to the independent Rycroft Review, would impose stricter limits on political donations from people returning to the United Kingdom after living overseas and introduce tougher eligibility checks for company donations. The proposals will be advanced through amendments to the Representation of the People Bill currently before Parliament.
Under the new measures, individuals returning from overseas will remain subject to a £100,000 annual cap on political donations for at least one full calendar year after returning to the UK. The government said the requirement is intended to prevent donors from circumventing existing restrictions simply by re-establishing UK residency. Similar rules will also apply to individuals moving to Britain who were not previously registered as overseas electors.
The government is also tightening corporate donation rules by requiring companies to demonstrate sufficient post-tax profits over the previous five years, replacing the current revenue-based assessment. Ministers said the change is intended to ensure that only businesses with genuine economic activity and substantial links to the UK can make political contributions.
Additional transparency requirements would require election candidates to verify that campaign funding received before formally becoming candidates came from legitimate sources. Donations above the statutory reporting threshold received before the regulated campaign period would also have to be declared, according to the government's proposals.
The reforms follow recommendations made by Philip Rycroft's independent review into foreign financial influence in UK politics, which the government said it had accepted in full. Ministers said the package also builds on previously announced plans to prohibit cryptocurrency donations and strengthen safeguards against foreign interference in elections.
The announcement comes amid broader scrutiny of political financing in Britain, including investigations into the source of several high-profile donations. Those inquiries are being handled separately by the relevant authorities and are distinct from the government's legislative proposals.
The Representation of the People Bill is due to return to Parliament for further consideration, where lawmakers will debate the proposed amendments before they can become law.
