Thank you to everyone who has contacted me about political donations.
I agree that the rules should be strengthened. At present, any company registered in and carrying on business in the UK can donate to a British political party. This means that money from foreign sources can enter UK politics through donations made by UK companies.
There have been calls for reform in this area for many years. While previous Governments chose not to act, my colleagues and I made a manifesto commitment to protect democracy by strengthening the rules on political donations. In my view, strong rules on political funding are essential to rebuilding public trust in politics.
Regarding your suggestion of capping individual donations, I support an annual cap of £100,000 for UK nationals living overseas. This is because it is much harder to verify the source of donations from overseas electors than from people living in the UK. As such, overseas donations could be exploited by hostile foreign states.
For domestic donations, I note there are currently robust spending and reporting rules for political parties, with spending capped at slightly over £34 million for a general election campaign. However, I assure you that I will bear in mind the points raised as Parliament debates these issues.
I am proud to support the Representation of the People Bill, which includes measures to improve transparency and accountability in politics, as well as bringing in votes at 16. The Government has announced new amendments to the Bill, in response to an independent review into foreign influence and interference in British politics.
Alongside the annual £100,000 cap on donations, overseas electors returning to the UK must be here for a full calendar year before that cap is lifted. Corporate donations will be based on post-tax profits, ensuring that they reflect genuine UK-based economic activity, and donor declarations will need to be made by anyone donating above a threshold which will be set following discussions with the Electoral Commission and political parties.
For the first time, candidates will also have to show that any campaign funding received before they officially become a candidate comes from legitimate sources. At present, donations received before the regulated election period are not covered by the same requirements, meaning funding from illegitimate sources could go undeclared and be used to support campaigns.
Thank you once again to everyone who got in touch about this important issue.