A government-commissioned report has proposed significant curbs to political donations, in a move likely to hit Reform UK’s funding the hardest.
Plans to limit the amount Britons overseas can donate to British political parties, limits on company donations and a new moratorium on cryptocurrency money for political parties have been proposed by an ex-mandarin in a report released today.
Philip Rycroft, a former top official, is proposing immediate changes to legislation which he says will curb foreign financial influence on our political system. He also proposes banning political adverts which are funded overseas, as well as lowering the burden of proof for electoral offences.
Shortly after the release of the Rycroft report, Prime Minister Sir Keir Starmer confirmed in the House of Commons that he will ban cryptocurrency donations.
“We will act decisively to protect our democracy,” he said.
“That will include a moratorium on all political donations made through cryptocurrencies.”
Communities Secretary Steve Reed also confirmed that overseas electors will be capped at donating £100,000 per year, a ban that will apply from Wednesday 25 March.
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The report says that there is a “persistent problem of foreign interference”, which can be “malign” and “sow discontent”.
Mr Rycroft says the intention is to undermine confidence in our democracy.
However he also concedes there is “no immediate crisis” and no evidence that the 2024 election was distorted by foreign financing.
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As well as traditional hostile claims, the report says that there is a “new threat” from the United States, as allies, as well as enemies, seek to “interfere and pursue their own goals.”.
The moves would curb donations by Christopher Harborne, the Thailand based fan of cryptocurrency, who gave over £12m in the last year to Reform. Reform UK also accepts crypto donations which would be suspended.
The law could be changed in months, with amendments to legislation already in the Commons.
Nigel Farage has previously complained that this review is designed to hurt Reform UK.
Mr Rycroft spoke to a large range of figures for the report, many of whom are hostile to Reform UK, but none of Reform UK’s MPs individually. He did speak to Reform UK party officials, however.
Reacting to the report, the Liberal Democrats called for Reform to hand back all the cryptocurrency donations they have received from “anonymous overseas sources”.
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Jess Garland, the director of the Electoral Reform Society, welcomed the Rycroft proposals – but called on the government to go further and “bring in a cap on how much all donors can give to a party, not just those based abroad”.
Ms Garland added: “This is widely supported by the public and would help prevent our politics from being swamped with massive donations, which now frequently reach into the multiple millions.
“Trust in politics is at a record low. To rebuild it, the rules around money in politics need to ensure that politicians are always focused on the needs of voters, not donors.”
