UK Government: no plans to cap political donations

On 26 February 2025, the UK Government provided its response to a petition started by Jeremy Stone in which they stated that they ‘have no current plans to put a cap on donations to political parties’.

What is the petition about?

Jeremy Stone petitioned the UK Government due to concerns about political financing and is on a mission to ‘tighten the rules on political donations’. Looking into the campaign in a little more detail, campaigners are demanding the UK administration ‘remove loopholes that allow wealthy foreign individuals to make donations into UK political parties’. An example given by campaigners was the ‘funnelling’ money ‘through UK registered companies’. Stone also wants decision-makers in the Government to ‘cap donations to political parties to a reasonable amount’ and to look at the consequences by ‘reviewing the financial sanctions for breaking the rules’.

Why do campaigners want this change?

Campaigners believe that what they describe as ‘foreign state actors’ and ‘ultra-rich individuals should not be able to use their money to give an unfair advantage to a political party’. Mr Stone is concerned because he thinks that these categories of people should not be able to ‘further their own agenda’.

How did the UK Government respond?

The United Kingdom Government was forced to respond to Jeremy Stone’s petition because 100,000 people had signed the document. At the time of writing 139,406 people had put pen to paper in support of the campaign. At first the administration made clear ‘it’s commitment to protecting’ the ‘democracy’ of the United Kingdom ‘by strengthening the rules around donations to political parties’. It claimed it is ‘currently developing proposals to give effect to this commitment’. There appeared to be no details though regarding what might be included in the proposals. .

In the second paragraph of its statement, the United Kingdom Government directly answered Stone’s petition by observing that the ‘UK has a strong political finance framework which makes it clear that only those with a legitimate interest in UK elections can make political donations’. They added to this by advising, ‘Foreign donations are not permitted’.

Exception is made for some Irish donations

The UK Government observed that exceptions were already made for ‘donations from certain Irish sources to Northern Irish political parties’, as made clear on the Electoral Commission website that lists donations. The administration said they ‘recognise the special place of Ireland in the political life and culture of Northern Ireland’. The Government claimed its perceived lack of action was ‘consistent with the principles set out in the Belfast (Good Friday) Agreement’. The Electoral Commission observes that through the Political Parties, Elections and Referendums Act 2000 ‘controls are placed on donations and loans a political party can accept’. Loans and donations should be ‘recorded and reported to the Electoral Commission which are then published on a register on the Electoral Commission’s website’.

Are some donations illegal?

So which donations are illegal? In the second paragraph of its response the authorities clarified that ‘accepting or facilitating an illegitimate foreign donation’ is what it called ‘rightly a criminal offence’. Whilst recognising this illegality, the UK administration highlighted the ‘continued risk posed by actors who seek to interfere with and undermine our democratic processes’. The UK Government made clear that ‘they do not think the current rules are strong enough’ and pointed to the ‘commitment it made in the Labour Party Manifesto during the 2024 General Election campaign in which it sought to strengthen the rules around donations to political parties’. Looking at the details there was no mention of it in the Labour Party General Election manifesto.

No present plans to cap donations

In disappointing news for campaigners on this issue and in an extraordinary response buried in the third paragraph of its release, the Government definitively advised members of the public that they ‘currently have no plans to put a cap on donations’. They attempted to strike a balance between the ‘vital role political parties play in the democracy (of the United Kingdom). The administration also observed as they see it the need to balance this with the ‘importance of being able to (both) communicate with the electorate and effectively raise funds’. Explaining its stance the United Kingdom set out the legal position in the jurisdiction stating ‘by law it is already the responsibility of political parties to take all reasonable steps to verify the identity of a donor and whether they are permissible’.

They added ‘the Government will take any necessary steps to ensure those requirements are tightened and abided by’. Interestingly though, it was absent from the Labour Party General Election manifesto in 2024.

What is the Government considering?

The United Kingdom Government pointed to the part ‘The Electoral Commission plays in the United Kingdom’s democratic system as the regulator of political finance’. The administration opined that: ‘Robust regulation and enforcement of political finance rules are crucial for promoting public confidence in democratic processes’, ensuring the integrity, and combatting the threat of foreign interference. It remains to be seen what will happen and what the Government plans are. The administration said ‘as part of delivering on our commitment to strengthen the rules around political donations, we are also reviewing whether any changes are required to the role and powers of the regulator to ensure enforcement provides a clear deterrent against breaking the law’.

The UK Government seems keen to strike the balance by suggesting that it will be ‘remaining proportionate’ in its approach.

The administration elaborated on this view, ‘The Government is currently developing proposals to give effect to these commitments and will introduce legislative measures in due course. In the coming period of time the UK Government is ‘carefully considering evidence from a range of stakeholders’ and will be listening to ‘recommendations from parliamentary committees and the Electoral Commission.

Can the public do anything?

Whilst the Government wants to see the rules improved and developed, they do not seem to be fans of putting a cap on political donations. But if the reader of this article would like to pressurise the Government to do more to cap political donations, something they could do would be to sign Jeremy Stone’s petition, with a view to having a real influence on Government policy and capping the level of money donated to political parties.