UK’s Politics Now Wide Open to Foreign Donations, Peers Warn, as Government Scraps Time Limit on Brits’ Donations from Abroad

The floodgates have been opened to foreign interference in British democracy, peers have warned, as ministers pushed through the extension of votes – and donations – for life for Brits who live abroad. 

The Government has just extended voting and political donation rights to British citizens living abroad, irrespective of how long they have been away from the UK. It was a manifesto pledge from the Conservatives in 2019, but critics have noted there are few checks to ensure that the sources of donations from abroad can be vetted.

This move has sparked a heated debate about the integrity of the UK’s democratic process, particularly in light of the lack of checks on political donations from abroad.

On Tuesday, Byline Times covered a damning new report finding that the UK Government is “almost certain that Russian actors sought to interfere in the 2019 general election”. 

The Joint Committee on the National Security Strategy, comprising MPs and peers from both Houses of Parliament, said it was alarmed that attempts to interfere may be made in the next general election – with no proper protection for politicians and political parties – and have sought an urgent meeting with the National Cyber Security Centre to discuss the matter.

In the debate on changes to the Representation of the People (Overseas Electors Amendment) Regulations on Tuesday night (12 December), Minister Baroness Penn, representing the Government, argued that overseas electors should be considered an integral part of the democracy and have the same rights as other citizens, including making political donations. 

But Labour’s Lord Khan, supported by a majority in the House, warned the changes could “dangerously weaken” restrictions on overseas political donations and allow more foreign money to influence British politics.

With some 30 seats in the last general election decided by fewer than 1,000 votes, even a small number of overseas votes could swing results. And the new registration rules, which allow any UK voter to attest to the identity and past location of an overseas voter, were seen as potentially vulnerable to manipulation. This loophole, critics argue, could be exploited by those wishing to influence elections in specific seats by claiming they lived in swing seats some decades ago. 

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Bungs from Moscow

Under current rules, political donors who contribute more than £500 must be on the electoral register. The removal of the 15-year limit, however, might allow individuals with minimal connections to the UK, possibly from states hostile to Britain, to exert significant influence through financial contributions, opposition peers warned. 

And Lord Khan noted that Brits who live in Russia and haven’t returned to the UK for decades could now donate vast sums from Moscow to political parties here.

“It is beyond belief that the Government [is] seeking to risk opening our system at such a critical time for our world. What would a political party do if, for instance, it were offered a donation of £50,000 by somebody who lives and works in Moscow today?” Lord Khan said.

The Labour front bench, represented by Lord Khan, as well as Liberal Democrats stressed that this could open the door to manipulation by hostile foreign actors.

There is no single body responsible for investigating the sources of donations, and donations made by Brits living abroad for decades will likely be treated the same as any other – rather than as ‘foreign’ donations which are theoretically illegal in the UK. 

Lib Dem peer Lord Rennard was particularly concerned about the changes, arguing: “The absence of any cap on the size of donations will no doubt encourage more donations of, say, £5 million-plus to come from people whose real interests are not in this country. 

“Why should a billionaire tax exile be able to fund a political party in the UK, and who knows where their money really comes from?”

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No Scrutiny

He added that the Government has “clipped the wings” of the previously independent Electoral Commission through the Elections Act 2022, and stripped it of the ability to launch criminal investigations into election finance laws. 

There is also doubt over how fines can be levied to Brits abroad who are abusing the new rules.

“Political parties themselves have very little capacity to scrutinise overseas bank accounts, or to inspect the accounts of companies operating overseas, even if they want to. Earlier this year, the Government rejected an amendment to the then National Security Bill which would have insisted on greater scrutiny of the original sources of donations to parties. I wonder why?” Lord Rennard asked. 

The chair of the Intelligence and Security Committee, Julian Lewis, earlier this year backed tougher checks, noting that “the UK has clearly welcomed Russian money, including in the political sphere … We must protect against covert, foreign state-backed financial donations if we are to defend our democratic institutions from harmful interference and influence”

However, the Government voted against tougher checks by parties on sources of donations. “I think perhaps we should be told [why]” Lord Rennard said. 

Lord Rennard suggested alternative models, such as overseas constituencies similar to those in France and Italy, to better represent citizens living abroad and avoid swing seat results being changed by those with little connection to the UK, as well as beefed up investigatory powers for the Electoral Commission and National Crime Agency. <