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Foreign Financial Influence and Interference: UK Politics
25 March 2026
Lead MP
Steve Reed
Debate Type
Ministerial Statement
Tags
TaxationStandards & Ethics
Other Contributors: 44
At a Glance
Steve Reed raised concerns about foreign financial influence and interference: uk politics in the House of Commons. A government minister responded. Other MPs also contributed.
How the Debate Unfolded
MPs spoke in turn to share their views and ask questions. Here's what each person said:
Government Statement
The Minister announced an independent review led by Philip Rycroft into foreign financial interference in UK politics, highlighting the evolving threats to democracy. The report identifies significant issues and recommends measures including caps on donations from overseas electors (£100,000 annually), a moratorium on cryptocurrency donations, regulation of corporate and overseas donations, and addressing loopholes used by non-party campaign groups. Immediate action will be taken on these recommendations with amendments to the Representation of the People Bill. The cap on overseas donations is retrospective, applying from today onwards in all UK elections. Cryptocurrency donations are banned until sufficient regulation is established to ensure transparency. Amendments will also seek legislative consent motions for devolved matters to protect electoral systems across the United Kingdom.
James Cleverly
Con
Braintree
Question
The Shadow Minister asked why the Representation of the People Bill was introduced before receiving Rycroft's report. He also questioned which recommendations will require primary legislation and whether there would be adequate time for it.
Minister reply
The minister acknowledged the concerns about timing but emphasised the Government's commitment to act swiftly on significant threats. He stated that certain measures can be addressed through amendments, while others may necessitate further legislative processes.
James Cleverly
Con
Braintree
Question
The Shadow Minister asked for a full consultation with political parties and regulators before making substantive changes to the Bill. He questioned why domestic philanthropy was being treated as distasteful.
Minister reply
The minister committed to ensuring proper consultations are conducted, emphasising that while measures need to be robust against foreign interference, legitimacy of domestic funding will also be carefully considered.
James Cleverly
Con
Braintree
Question
The Shadow Minister inquired about steps to enforce current legislation and tightening rules on foreign donations. He specifically asked how the forthcoming elections would be protected.
Minister reply
The minister assured that enforcement of existing laws will be prioritised, and he committed to working with devolved governments to ensure comprehensive protection for upcoming elections.
James Cleverly
Con
Braintree
Question
Asked why the Representation of the People Bill was introduced before the Rycroft report, which recommendations require primary legislation, and if a full consultation will be conducted.
Minister reply
The Minister thanked the shadow for his support but explained that acting quickly was necessary to prevent hostile actors from exploiting any legislative gaps. He committed to proper engagement and scrutiny through parliamentary processes.
Question
Paid tribute to Sir Philip Rycroft, supported the moratorium on cryptocurrency donations, and questioned if recommendation 17 would be accepted.
Minister reply
The Minister thanked Florence Eshalomi for her questions and confirmed that detailed responses to all recommendations will be provided before Report stage amendments.
Question
Asked about the Government's intent to accept all 17 recommendations, raised concerns over overseas donations through UK companies, and inquired if calls for investigating Donald Trump’s Administration would be addressed.
Minister reply
The Minister clarified that two provisions will be brought forward immediately due to urgency but provided a commitment to respond to all 17 recommendations with parliamentary scrutiny.
Question
Proposed meeting the Secretary of State to incorporate her amendments on deepfakes, bots, disinformation, political ad libraries, and investigatory powers for the Electoral Commission.
Minister reply
The Minister thanked Emily Darlington for her support and offered a meeting or discussion with relevant Ministers to integrate her concerns into upcoming legislation.
Simon Hoare
Con
North Dorset
Question
As a former elections policy Minister and member of the defending democracy taskforce, may I thank the Secretary of State for launching this inquiry? He also thanked Philip Rycroft for his work. Simon Hoare asks two questions: if amendments to reflect the Rycroft report are not tabled at Committee stage but on Report, will he ensure through the usual channels that the length of time devoted to Report stage reflects the fact that the House will be debating for the first time amendments to the legislation which were not included on Second Reading? Additionally, Simon Hoare inquires about additional demands on the Electoral Commission both in terms of power and resource.
Minister reply
I thank the hon. Member for his support and contribution to Sir Philip Rycroft’s review. The Secretary of State is confident that the business managers will ensure there is adequate time on Report stage for Members to make their points. Regarding resources, we will need to ensure that the resources are adequate to meet any new demands placed on them or other regulators.
Question
I thank Sir Philip Rycroft for his important work and notes from his review about the online environment creating a cheap means of undermining trust in political processes. He asks if the Secretary of State agrees with those findings and what can be done to address the challenge of misinformation and disinformation on social media.
Minister reply
My hon. Friend makes an important point, as we have to maintain confidence and trust of the British electorate in the integrity of our elections and election processes. The legislation and amendments from the Rycroft review aim to achieve this.
Andrew Murrison
Con
South West Wiltshire
Question
Mr Rycroft’s wide-ranging review makes the non-inclusion of China—or, failing that, its constituent entities—in the foreign influence registration scheme look increasingly bizarre. Will the Government look at this again as a matter of urgency? If it is inadequate to include state entities in the scheme, will he review and perhaps replace it?
Minister reply
The right hon. Member raises an important point, and the Government are keeping that concern under close review so they stand ready to make changes as and when required.
Question
She welcomes the Secretary of State’s comments on the Rycroft review and presses him further on what actions the Government are taking to give the Electoral Commission both resources and powers needed to deter and punish breaches of political financial rules.
Minister reply
We will respond in detail to the recommendations and bring forward any new powers or resources that the Electoral Commission requires, ensuring it can carry out its responsibilities.
Stephen Gethins
SNP
North East Fife
Question
Putting on record thanks to Sir Philip Rycroft for his public service. He asks how this work will be impacted in terms of the elections and political donors who happen to find themselves as Members of the House of Lords if they break rules.
Minister reply
I hope to speak with the relevant Minister in the Scottish Government today, and engagement between officials will continue during the pre-election period.
Matt Western
Lab
Warwick and Leamington
Question
Welcomes Sir Philip Rycroft’s review. He notes questions about association with significant foreign donors living abroad for long periods. He also highlights recommendations from his Joint Committee on the National Security Strategy, including higher penalties which will be welcomed by enforcement agencies.
Minister reply
I thank my hon. Friend for raising concerns that have been addressed previously.
Mims Davies
Con
Eastleigh
Question
Grateful to the Secretary of State for talking about integrity in politics, but as purdah arrives, she sees a mess of dithering and delay affecting her constituents. Decisions are apparently taken on a case-by-case basis, leading people to say that political gerrymandering is happening.
Minister reply
Of the original proposals, none were considered financially viable ultimately. We are reopening consultation, allowing comment from the hon. Member and constituents.
Rushanara Ali
Lab
Bethnal Green and Bow
Question
Welcomes Rycroft’s review and commitment to take action on crypto donations and capping foreign donations from overseas donors. She draws attention to the report's comment that social media seeks to exacerbate division and increase polarisation, making it dangerous for electoral candidates.
Minister reply
We will provide a detailed response to recommendations, allowing scrutiny as we work through legislation.
Question
Thinks the Secretary of State should go further on corporate donations given CenTax report revealing one in four donations from corporate entities being opaque and relying on persons with significant control rules. Recommends tightening up the system so people cannot circumvent rules by donating via British companies.
Minister reply
The Bill and review propose actions regarding shell companies, which can funnel dark money, possibly coming from hostile states trying to weaken our democracy.
Chi Onwurah
Lab
Newcastle upon Tyne Central
Question
In his report, Sir Philip Rycroft references the amplification of divisive content on social media. She notes design algorithms are determined by foreign billionaires and asks if political bias in algorithms constitutes a donation in kind.
Minister reply
We will not target any individual or state but aim to put safeguards against growing threats wherever they arise.
Julian Lewis
Con
New Forest East
Question
I think the Government are very wise to try to close the potential loophole that somebody might make a giant donation between today and the conclusion of the legislative process, but I can think of at least one other rather glaring loophole, which hopefully the Secretary of State has also considered. If somebody is an elector living abroad, he will be limited to £100,000 per donation, but what about other members of his close family to whom he could channel indefinite numbers of packages of £100,000 apiece? What is to stop them from making similar donations? Has the Secretary of State considered how the limit will work in practice?
Minister reply
Any attempt to bypass existing laws or the provisions that I have announced today would themselves be illegal. We would seek to identify the ultimate source and, if any behaviours of that kind had been carried out, there would be necessary enforcement action to follow.
Question
I welcome the measures announced today to tackle foreign interference in our elections. Will the Secretary of State go a step further and support my proposal to break the link between wealthy donors and the parties they help to elect by banning their firms from subsequently holding Government contracts?
Minister reply
The report is focused on stopping money coming in from hostile states or other hostile individuals who seek to undermine our democracy. That is the extent of the measures that I am announcing today.
Question
Constituents like Andrew from Crewkerne have told me how worried they are about funding from the United States for right-wing UK think-tanks and political parties. Recommendations 4 and 16 of the review would strengthen transparency and reporting around donations to think-tanks and lobbying groups, which can advance foreign influence. Will the Secretary of State tell my constituents whether the Government will implement those recommendations, and when that will be?
Minister reply
I thank the hon. Member and his constituents for their interest in this important matter. Philip Rycroft makes 17 detailed recommendations in his review. We will respond to all of them line by line, and at that point the hon. Member and his constituents will have our clear view.
Question
I thank the Secretary of State for making this important statement. Like the hon. Member for Carshalton and Wallington (Bobby Dean), I am concerned about the ability of shell companies to make political donations. Clearly that is not transparent, and that is rightly recognised in the Rycroft review. What steps will the Government take to close that loophole? Crucially, what will the Government do to strengthen the monitoring of donations?
Minister reply
That is an important point, because the ability of shell companies to exist as funnels for dark, dirty money entering and polluting UK politics is real. That is why we are taking the recommendations seriously, and we will come forward with amendments to the legislation intended to close those doors so that we can keep British elections free for British people.
Suella Fernandes
Con
Fareham
Question
I am going to mention the elephant in the room. Earlier this month, the husband of a sitting Labour MP—the hon. Member for East Kilbride and Strathaven (Joani Reid)—was arrested on suspicion of spying for China. The hon. Member was subsequently suspended from the Labour party. It has been reported that she received a donation from her husband’s firm, which presumably would be covered by the Government’s plans. I do not expect any comment on that live investigation, but in the light of that and the historic case of Christine Lee, Labour MPs and the Chinese Communist party, will the Secretary of State confirm that the measures he has announced will apply equally to members of his own party who find themselves compromised by the Chinese Communist party?
Minister reply
The right hon. and learned Member, as a former Home Secretary, will of course know that I cannot comment on ongoing investigations. The provisions of the legislation that we will bring forward—as with all legislation—will apply without fear and favour to members of all parties, as indeed does the bribery legislation that applied to Nathan Gill, a traitor who was the leader of Reform in Wales.
Question
At the time of the Boston tea party, the American colonists demanded, “No taxation without representation.” Does my right hon. Friend agree that we should instil the principle that there should be no ability, in a game-changing way, to influence representation without taxation? Will he elaborate a little on the principles in his statement?
Minister reply
Philip Rycroft has recognised the concern and proposed what I think is a proportionate approach to dealing with it. I have accepted the figure of a £100,000 cap, which I think most reasonably minded people would agree is a very generous level of funding, for donations from British nationals who are living and paying their taxes overseas.
Question
I am grateful to the Secretary of State for his comments. The Rycroft report has come at a really important time. As a member of the Bill Committee, I look forward to working with the Government to ensure that all the recommendations are brought through, because they are incredibly important. I return to the comment of my hon. Friend the Member for Hazel Grove (Lisa Smart) about the importance of a report relating to US interference in our democracy. What steps are the Government and the defending democracy taskforce taking to protect our democracy from foreign interference more generally before the Representation of the People Bill passes through the House?
Minister reply
The US, of course, is our closest ally. The provisions that we are making in this legislation do not target any one country, or indeed any one individual; they are intended to be a proportionate response to a growing threat, wherever that threat may arise.
Anneliese Dodds
Lab
Oxford East
Question
I strongly welcome the report and the Government’s speedy and decisive response to it. Evidence from Germany and from Moldova shows how online attempts at foreign interference can combine with real-life attempts at foreign interference in the run-up to elections. First, was I right in hearing that the Government will look at a transparent protocol for dealing with information emergencies related to foreign actors in the run-up to elections? Secondly, is the Secretary of State aware that in countries where crypto interests have unfairly influenced elections, donations have often been given in domestic currency? Will he look at that broader context?
Minister reply
There are recommendations covering precisely the points that my right hon. Friend raised. I have accepted the report, in general terms, in full. We will respond in detail to each of the 17 recommendations, which I hope will address her concerns.
Question
I warmly welcome the Rycroft review and the Government’s swift action set out today on crypto and on overseas donations, although I would like to see them go much further. The Secretary of State said that he will amend the Representation of the People Bill wherever necessary. As a member of the Bill Committee, I would love to see those amendments tabled while we are still in Committee so that we can give them the line-by-line scrutiny that, as he referred to, is the normal practice of this House. Will he please pull out all the stops to ensure that happens? On stopping the spread of disinformation on social media, Philip Rycroft refers on page 47 of the report to the significant benefits that could come from having a real-time online library of social media adverts so that we get that transparency and that light shone on how all sorts of actors are influencing people below the surface. Does the Secretary of State support Philip Rycroft’s view on that? Will he table an amendment to deal with that problem?
Minister reply
I thank the hon. Lady for her and her party’s support for the review. I also thank her for her work on the Bill Committee. She is quite right; we need to make sure that when the amendments come forward, the Bill Committee has sufficient time—and, indeed, that the House has sufficient time—to go through them in detail. I and the Government will respond to each of the 17 recommendations in detail, and I think that that will be the most appropriate time to respond to the question she has raised.
Question
As an individual who has dedicated my life to tackling corruption in all its forms and as the chair of the all-party parliamentary group on anti-corruption and responsible tax, I thank the Secretary of State and the Minister for Security, my hon. and gallant Friend the Member for Barnsley North (Dan Jarvis), for their commitment to addressing foreign interference in our politics, as well as thanking Philip Rycroft for his review. I am grateful for the immediate measures that the Government have announced today on crypto donations and the size of donations made by British nationals abroad. They are very welcome and very much needed.
May I press the Secretary of State on three particular questions? First, to what extent can he assure the House that the Electoral Commission is sufficiently supported to monitor and police the perimeter of the new announcements that have been made today? Secondly, will he confirm that, contrary to the remarks of the shadow Secretary of State, there was ample opportunity for political parties of all stripes to feed into the review? Thirdly, on “know your donor” checks and the risk factors that will be introduced through the Bill, there is a recommendation in the report that they should be more aligned with the anti-money laundering requirements that have been in place for quite some time for banks and other financial services firms. Will the Secretary of State commit to working with other regulators—for instance, the Financial Conduct Authority—to understand how those would best be implemented, working with parties?
Minister reply
I thank my hon. Friend for his personal engagement on this issue and for the work of the APPG that he chairs. It has made some significant contributions and we are grateful for that. We will, of course, ensure that the Electoral Commission has the resources it requires to enforce changes as we bring them forward. On his final point, the defending democracy taskforce exists to make sure that there is proper alignment across all the necessary regulators to ensure that we are keeping our democracy in this country free and safe.
Question
I welcome the Secretary of State’s reference to the rights of British overseas electors and the cap on donations as a proportionate response, yet their right to cast their vote is constantly stymied by late arrivals of the post. While the Secretary of State is considering amendments to the Representation of the People Bill, will he meet me to consider my amendments that would address that issue and seek to secure the voting rights of overseas citizens?
Minister reply
I am aware of that important concern. I am happy to make sure that he gets an appropriate meeting to discuss it.
Question
Welcomes the report and recommends switching to profit-based donations to prevent shell companies from funneling dark money. Asks if the Government will take a close look at this recommendation.
Minister reply
Thanks the MP for his support and agrees that preventing shell companies from being set up to funnel dark money is important, while also noting it shouldn't prevent genuine British companies from donating.
Gregory Campbell
DUP
East Londonderry
Question
Welcomes the review and raises concern about Sinn Féin's ability to fundraise in the USA and transfer funds into Northern Ireland.
Minister reply
Acknowledges the MP’s concerns, highlights the importance of engagement for addressing such issues.
Nia Griffith
Lab
Llanelli
Question
Welcomes the ban on cryptoasset donations and capping foreign donations. Asks about when and how the Government will take forward Rycroft’s recommendations regarding banning foreign-funded adverts and requiring imprints for online ads.
Minister reply
Reaffirms commitment to respond in detail to all recommendations, including those raised by the MP.
Question
Encourages extending retrospectivity of crypto and foreign donations measures back to previous general elections.
Minister reply
Notes lack of precedent for such a level of retrospectivity.
Alex Sobel
Lab
Leeds North West
Question
Thanks Philip Rycroft for including points from the Fair Elections APPG and raises concerns about foreign online interference. Asks if UK is considering modalities, capabilities, and powers to implement recommendations.
Minister reply
Commits to responding in detail to each recommendation, learning from best practices internationally.
Ben Lake
PC
Ceredigion
Question
Welcomes the review and seeks clarification on whether changes will apply immediately without a legislative consent motion for devolved elections.
Minister reply
Reassures that provisions announced today apply to entire UK with immediate effect.
Question
Welcomes the review, references paragraph 75 on reporting requirements for campaign spending outside regulated periods and asks about urgency of dealing with this issue.
Minister reply
Commits to responding in detail to recommendations regarding non-party campaigns and candidates.
Question
Welcomes the report, particularly the cap on donations from overseas voters. Raises concerns about domestic big-money politics influencing parties and asks how to promote fairer representation.
Minister reply
Stresses that review aims to address foreign influence in elections, not domestic issues.
Question
Welcomes focus on social media threats to democracy. Asks if recommendations extend to Members of Parliament receiving income from platforms like X.
Minister reply
Acknowledges the need for time to respond in detail to recommendations and bring forward necessary amendments.
Question
Highlights case of Nathan Gill’s conviction for promoting pro-Russian narratives, asks what additional steps can be taken against foreign interference.
Minister reply
Stresses importance of bringing forward provisions in the Representation of the People Bill and amendments based on Rycroft’s review.
Question
Thanks for quick action on crypto donations. Asks what further steps will be taken to ensure influence does not move from politics into lobbying or think-tanks.
Minister reply
Notes recommendations in the review about preventing such influences and commits to bringing forward detailed responses.
Jim Shannon
DUP
Strangford
Question
Asked for clarification on the adequacy of safeguards against political funding originating from Ireland and the US, ensuring accountability and transparency in elections.
Minister reply
Acknowledged the hon. Gentleman's concern and stated that robust safeguards will be implemented to prevent 'dirty or dark money' entering British politics.
Chris Hinchliff
Lab
Question
Requested a meeting with the Secretary of State to discuss an amendment banning developers from donating to political parties to restore trust in the planning system.
Minister reply
Agreed to arrange an appropriate meeting and wished Jim Shannon a happy birthday.
Question
Inquired about activating section 10 of the Political Parties and Elections Act 2009 to restrict only UK domiciled individuals from influencing democracy with donations.
Minister reply
Agreed to look into this measure.
Question
Asked about criminal penalties for breaking the new rules on overseas electors and cryptocurrency donations, seeking an effective deterrent.
Minister reply
Confirmed that details will be laid before Parliament for review and that retrospective change is subject to legislation passing successfully.
Shadow Comment
James Cleverly
Shadow Comment
The Shadow Minister thanked Philip Rycroft for his review but criticised the Government's process, stating that the report was published too close to Prime Minister's Questions and other meetings. He highlighted concerns about rushed changes to the Representation of the People Bill without proper consultation and scrutiny. The Conservative Party agrees with protecting democracy, but criticises the lack of cross-party collaboration and procedural issues. Key questions were raised regarding the timing of introducing legislation before receiving a full report, primary legislation requirements for recommendations, commitment to consultations, impact on legitimate domestic donations, enforcement of current laws, tightening foreign donation rules, and ensuring election protection in Wales and Scotland.
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