UK tightens political donation rules to curb foreign influence amid funding scrutiny

Britain on Monday unveiled stricter rules governing political donations from overseas as part of a broader effort to prevent foreign money from influencing elections, amid growing concerns over what Housing Minister Steve Reed described as “dodgy funding.”

The reforms follow a government review launched last year after a former Reform UK politician was jailed for accepting bribes to make pro-Russia speeches and statements.

The review concluded that Britain faces a persistent threat from foreign states—including Russia, China and Iran—seeking to influence and undermine the country’s democratic processes, prompting the government to strengthen campaign finance rules.

The announcement also comes as Reform UK leader Nigel Farage faces scrutiny over political funding. He is under investigation by Parliament’s standards watchdog over whether he should have declared a £5 million ($6.68 million) donation from Thailand-based cryptocurrency billionaire Christopher Harborne, which was made before Farage formally became an MP.

Under the new rules, political candidates must declare donations worth more than £2,230 received before officially becoming candidates and demonstrate that any pre-candidacy funding came from legitimate sources.

“By holding overseas donors to tougher standards and requiring candidates to prove where their funding comes from, we are taking world-leading action to protect the integrity of our elections and tackle the threats we face from abroad,” Reed said.

The measures also require individuals who move to the UK from overseas to have lived permanently in the country for at least one year before making political donations of £100,000 or more.

In addition, donations from companies will now be assessed based on their post-tax profits rather than revenue, a move aimed at ensuring only genuine UK-linked businesses are able to make significant political contributions.

The latest reforms build on measures introduced in March, which capped annual political donations from British citizens living abroad at £100,000 and temporarily banned cryptocurrency donations until an effective regulatory framework is in place.

Reform UK, which has led national opinion polls for more than a year, has maintained that no rules were broken over Harborne’s donation. According to Electoral Commission data, the crypto investor accounted for roughly two-thirds of the party’s funding last year.

Separately, Farage was referred to Parliament’s standards watchdog on Sunday following reports that he failed to declare additional benefits.