Ministers are drawing up plans proscribing international donors from giving limitless funds to UK political events, Sky Information understands.
Presently, political events can settle for donations from any firm registered within the UK – and international donors can and have used these corporations to make oblique contributions.
The foundations enable for British corporations for use on this approach even when they do not make any cash in any respect.
Nevertheless, Sky Information understands that officers are at the moment taking a look at proscribing donations primarily based on how a lot cash an organization makes – both utilizing a revenue or a share of income to calculate a possible cap for the quantity every UK enterprise may give.
The federal government says that is consistent with its manifesto pledge to “defend democracy by strengthening the foundations round donations to political events”.
Senior authorities sources have advised Sky Information these modifications are partially about Elon Musk.
Officers are stated to be troubled in regards to the rumoured donation of $100m (about £80m) that Musk has recommended he would make to Reform UK.
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Nigel Farage says ‘Musk goes to assist Reform’
The federal government’s considering is that the tech billionaire is probably going to do that simply earlier than the subsequent election, and so they hope they will move their Elections Invoice – the laws by means of which the donation loophole could be closed – by means of parliament earlier than that occurs.
The invoice would enter parliament within the subsequent session, however ministers have advised MPs that they need to anticipate an replace to those plans inside months.
Musk’s donation could be an astronomical quantity within the context of British politics.
The sum would trump all political donations which have been made to any political occasion this yr – and would inevitably make a huge impact on campaigning.
Elon Musk shouldn’t be on the electoral register and the British arm of his firm X – X.AI London Restricted – has not but made any cash.
Beneath the proposed modifications, this avenue of donating cash to Reform UK wouldn’t be attainable.
Reform UK’s whole acquired donations for 2024 could be significantly greater with £80m from Elon Musk
A authorities supply stated that is simply one of many choices on the desk, including that one other change they’re contemplating will imply enhanced due diligence checks on donations from unincorporated associations.
In unique polling, Sky Information has discovered that any cash given to events by international donors is extremely unpopular.
A complete of 77% of respondents thought international nationals who will not be registered to vote within the UK shouldn’t be allowed to donate to political events, whereas solely 7% thought they need to be.
Even wanting particularly at Reform UK voters, who would seemingly profit from an Elon Musk donation, the proportion is roughly the identical: 73% stated they should not donate to British politics in any respect, whereas 7% stated they need to.
A complete of 77% of respondents stated international nationals shouldn’t be allowed to donate to UK political events
There may be loads of money swirling throughout Westminster and international cash can and does enter UK politics.
Transparency Worldwide discovered nearly £1 in each £10 donated to events and politicians got here from unknown or doubtful sources between 2001 and 2024.
Regardless of the motivation, these modifications may carry better transparency to what’s behind any murky cash swirling into Westminster.
