Spotlight asked electoral experts what they want to see in the upcoming Elections Bill. Here former Electoral Commission chief executive Bob Posner discusses how to block foreign donations.
Most established democracies around the world, including the UK, prohibit donations to political parties or political campaigners from foreign sources. Indeed, the UK as a member of the Council of Europe is a signatory to this principle. The premise is one of self- determination: that it is only for the citizens of a country and those who have a direct stake in it to determine who is elected and governs.
Accordingly, the rules on donations in the UK only permit donations (or loans) from an individual on a UK electoral register or from a company incorporated and registered in the UK that carries on business in the UK.
It is this second category of company donations that is not water-tight in preventing foreign-sourced or overseas-directed funds being fed into UK politics through international company structures. In other words, a UK-based company can readily acquire overseas funding and/or be directed by non-permissible overseas donors to make donations to UK political parties. There is insufficient transparency to demonstrate the extent to which this happens but it is likely not contentious to conclude it does.
This matters if we are to ensure free and fair elections and ensure voters’ trust in politics.
Two straightforward changes to elections law would address the issue. Both are needed.
- Corporate donations should only be
permissible from UK businesses generating
sufficient income to cover their donations. - Political parties should only be allowed to
accept donations from UK businesses whose
ultimate beneficial owners are permissible
donors under electoral law.
Click on the image below to read Bob’s short paper in full.
