LONDON — The United Kingdom took steps Monday to strengthen its rules around foreign political donations, aiming to prevent outside money from shaping British elections in what Housing Minister Steve Reed described as a fight against “dodgy funding.”
The push for reform began last year after the government launched a review into foreign financial meddling in politics, triggered by the jailing of a former Reform UK politician who accepted bribes in exchange for making pro-Russia speeches and statements.
That review concluded that Britain faces an ongoing threat from foreign nations — specifically naming Russia, China, and Iran — attempting to interfere with and weaken the country’s democratic processes. Those findings led directly to the new regulations now taking effect.
The timing is notable, as Reform UK leader Nigel Farage is currently under investigation by parliament’s standards watchdog. The inquiry centers on whether Farage should have disclosed a £5 million ($6.68 million) donation from a Thailand-based cryptocurrency billionaire — money that was given before Farage announced he would run for a seat in parliament.
Britain’s Ministry of Housing, Communities and Local Government announced Monday that going forward, political candidates must declare any donations exceeding £2,230 that were received before they officially became a candidate. They must also demonstrate that any pre-candidacy funding came from legitimate sources.
“By holding overseas donors to tougher standards and requiring candidates to prove where their funding comes from, we are taking world-leading action to protect the integrity of our elections and tackle the threats we face from abroad,” Reed said in a prepared statement.
Additional provisions in the updated rules require individuals who move to the UK from other countries to live there permanently for at least one year before they are permitted to make a political donation of £100,000 or more. Donations from companies will now also be evaluated based on past post-tax profits rather than revenue, a change designed to ensure that only businesses with genuine ties to the UK can contribute.
These latest measures expand on rules announced back in March, which placed a £100,000-per-year cap on donations from British citizens living abroad and banned contributions made in cryptocurrency until a proper regulatory framework is in place.
Reform UK, which has led national opinion polls for more than a year, has maintained that no rules were violated regarding the donation Farage received from crypto investor Christopher Harborne. According to data from the Electoral Commission, Harborne supplied roughly two-thirds of Reform’s total funding last year.
Farage faced additional scrutiny on Sunday when he was referred to parliament’s standards watchdog following a report alleging he failed to disclose certain other benefits.
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