The UK government is moving to tighten restrictions on foreign donors using UK-registered companies to channel unlimited funds into British political parties.
Currently, any company registered in the UK can donate, even if it generates no revenue. This loophole has allowed foreign individuals to indirectly fund political campaigns.
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According to sources cited by Sky News, the UK government is considering setting a cap on donations based on a company’s profit or a percentage of its revenue. This move aligns with the government’s manifesto pledge to strengthen rules around political contributions and protect democratic integrity.
The Elon Musk Factor: A Key Driver Behind UK Government Reforms
A significant factor in these proposed changes is the potential donation from billionaire Elon Musk to Reform UK. Musk has reportedly suggested he might contribute up to $100 million (approximately £80 million) to the party ahead of the next general election.
This figure dwarfs all political donations made to UK parties this year and could significantly impact campaign dynamics.
Government officials are reportedly eager to close this loophole before such a donation can be made. The proposed legislation, part of the upcoming Elections Bill, aims to prevent foreign-linked money from influencing British politics.
Ministers plan to introduce the bill in the next parliamentary session, with updates on the restrictions expected within months.
Public Opinion and the Push for Transparency
Public sentiment strongly supports tighter controls on foreign donations. Exclusive polling by Sky News reveals that 77% of respondents believe foreign nationals not registered to vote in the UK should be barred from donating to political parties.
Even among Reform UK supporters, 73% agree with this restriction.
The broader issue of financial transparency in UK politics has long been a concern. A study by Transparency International found that nearly 10% of donations to political parties and politicians between 2001 and 2024 came from unknown or dubious sources.
With these new reforms, the UK government aims to curb the influence of foreign money and enhance the integrity of British democracy.
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