Policy paper

Political finance

Published 12 February 2026

Representation of the People Bill 2026: Political funding 

The threat of foreign interference is evolving, becoming increasingly hostile and sophisticated, while the current rules are no longer sufficient to address these risks. The government takes a zero tolerance approach to foreign interference, and we cannot afford to wait. Once illicit funds enter the political system, their influence can have a lasting impact, even if detected later. That is why, as part of our manifesto pledge to safeguard democracy, we are strengthening the rules around political donations.   

These reforms prioritise prevention as the first line of defence, aiming to reduce pressure on law enforcement, protecting political parties from exploitation, and delivering greater transparency, stronger safeguards against malign foreign actors, and increased public confidence in our democratic institutions.  

These measures are not intended to restrict legitimate political funding, which remains essential to sustaining UK democracy. Electoral law already makes it clear foreign money is not permitted in our political system. These measures will ensure that this principle holds and that only those with a genuine UK connection can contribute to our democratic process, safeguarding the integrity of UK elections for the future. 

To ensure we are leaving no stone unturned, we have also launched an independent review into foreign financial interference in UK politics, led by former Permanent Secretary Philip Rycroft, which will make recommendations to government by the end of March.  

Summary of the measures in the Bill 

Know your donor guidance 

We are strengthening obligations on those who receive donations through an enhanced “Know Your Donor” framework. For donations over £11,180, the current threshold for reporting donations to the Electoral Commission for most regulated campaigners, recipients will have to carry out a risk assessment to judge the likelihood of foreign or illicit sources of funding and decide whether to accept or return the donation.  

Restrict company donations to companies and LLPs that have adequate connection to the UK or Ireland 

Companies making donations will be required to demonstrate a genuine and substantive connection to the UK or Ireland, preventing the use of shell companies to channel foreign or illicit money into UK politics.  

We are introducing new, stringent eligibility criteria for companies wishing to make political donations. Companies will have had to make sufficient revenue to cover their donation; be headquartered in the UK; and be majority owned or controlled by UK electors or UK citizens usually resident in the UK. These changes are to ensure that political donations reflect genuine UK-based interests and help prevent foreign interference in our democracy. 

These new rules will apply to all monetary donations, as well as all in-kind donations above £2,230. Existing rules will continue to apply to in-kind donations below £2,230 to ensure legitimate hospitality, for example a MP visiting a local business, can continue. 

Introduce stronger requirements for unincorporated associations 

Unincorporated associations (UAs) have been identified as potential vehicles for funnelling foreign or illegitimate money into election campaigns, therefore we are introducing tighter rules for UAs. These include significantly lowering thresholds for when UAs have to register with (from £37,270 to £11,180) and report gifts (from £11,180 to £2,230) to the Electoral Commission, to improve transparency.  

We are also requiring UAs which intend to make campaign contributions above £11,180, to carry out checks on political gifts they receive to ensure they’re from permissible sources.   

Forfeiture 

We are also reinforcing the principle that only permissible donors may fund UK politics. Where illicit funds do enter the system via impermissible donors (e.g. individuals not on the electoral register), they will be subject to full forfeiture, providing a clear deterrent and supporting compliance by political parties and campaigners. 

Declarations on the source of donations 

Beyond our Bill measures, we will also commence section 54A of the Political Parties, Elections and Referendums Act via secondary legislation, requiring individuals making contributions of over £11,180 to declare any benefits linked to their donation. This measure will improve transparency around the true source of a donation. False declarations will be a criminal offence.