Political campaigners are calling on UK ministers to legislate a cap on political donations as part of efforts to “rebuild voter confidence” in the democratic process. This appeal coincides with the anticipated introduction of a significant elections bill early next year, which aims to extend voting rights to 16- and 17-year-olds.
In a letter sent this week to both Steve Reed, the Secretary of State for Communities, and Samantha Dixon, the Minister for Democracy, 19 civil organizations expressed that a cap on donations would be a crucial step in protecting democracy. Signatories of the letter include prominent groups such as the Electoral Reform Society, Transparency International UK, Hope not Hate, and the UK Anti-Corruption Coalition.
The demand for a donations cap follows a notable incident where Nigel Farage’s Reform UK reported receiving £9 million from Christopher Harborne, a cryptocurrency investor based in Thailand. This donation is recorded as the largest ever made by a living individual to a British political party.
Calls for Broader Reforms
In addition to the proposal for a donations cap, the elections bill is expected to address loopholes in political finance. Last summer, the government indicated plans to tighten regulations around donations from shell companies and unincorporated associations. Furthermore, there is a push to enhance the powers of the Electoral Commission, raising the maximum fines for breaches from £20,000 to £500,000.
The campaigners are also advocating for a ban on political donations made in cryptocurrency, a move already adopted by countries like Ireland and Brazil. Concerns have emerged regarding the integrity of electoral systems due to the anonymity and difficulty in tracing the origins of cryptocurrency contributions. Earlier this year, Farage’s party became the first to accept such donations.
In July, Pat McFadden, the Secretary of State for Work and Pensions, acknowledged the importance of scrutinizing cryptocurrency donations, stating, “it is very important that we know who is providing the donation.”
Despite these discussions, government ministers have hesitated to pursue legislation limiting political donations, even after evaluating a proposal from the Institute for Public Policy Research for a £100,000 cap. Like other major parties, Labour relies heavily on private fundraising for its campaigns, with notable donors including former Autoglass boss Gary Lubner and green energy entrepreneur Dale Vince.
Automatic Voter Registration and Electoral Independence
The letter also advocates for the introduction of automatic voter registration, a system currently being piloted in Wales. This measure aims to facilitate the addition of voters to the electoral roll without requiring them to register actively. Proponents argue that this initiative would improve voter turnout and encourage participation among renters and individuals from lower socioeconomic backgrounds, who historically face barriers to registration.
Furthermore, the signatories emphasized the need to protect the independence of the Electoral Commission, particularly after recent Conservative legislation that allows ministers to influence the regulator’s strategy and policy. The campaigners warned that such moves could lead to political interference, stating, “while it may seem politically expedient to maintain this power while in government, it is essential that independence be returned.”
Among the organizations supporting this letter are Generation Rent, The 99% Organisation, Make Votes Matter, The Black Equity Organisation, and the media platform Byline Times.
A report by Transparency International revealed that in 2023, £56.6 million in political donations was recorded, with 66% originating from private sources and concentrated among just 19 major donors.
In response to the mounting pressure, a spokesperson for the Ministry of Housing, Communities and Local Government (MHCLG) stated, “Our elections strategy sets out tough new rules on political donations, including plans to increase transparency and close loopholes for foreign funding as we modernize UK democracy and ensure its protection for generations to come.”
The proposed reforms and demands for increased transparency reflect a growing sentiment among voters and advocacy groups that significant changes are needed to restore faith in the electoral process in the United Kingdom.
