11
Accepted
We welcome the Government’s commitment to commence Section 54A of the Political Parties, Elections and...
Recommendation
We welcome the Government’s commitment to commence Section 54A of the Political Parties, Elections and Referendums Act. But the provisions need more work to adequately address concerns about donors acting as conduits for foreign money. We are sceptical about simply commencing 54A via secondary legislation without amendments. (Conclusion, Paragraph 91)
Government Response Summary
The government commits to commencing Section 54A PPERA before the end of this Parliament, introducing a declaration requirement, a new due diligence requirement, and amending the threshold to prevent foreign or impermissible donations.
Government Response
Accepted
Government Response
Accepted
HM Government
Accepted
The Government recognises the importance of strengthening the safeguards against impermissible and foreign-sourced donations, and we agree with the Committee’s underlying objective of ensuring that only legitimate, transparent funding enters the UK’s democratic system. In particular, the Government is committed to commencing Section 54A PPERA, as inserted by the Political Parties and Elections Act 2009, before the end of this Parliament. This will introduce a declaration requirement for donations above the existing statutory threshold, creating a clearer mechanism to verify the true source of funds and establishing criminal liability for false declarations made knowingly or recklessly. As previously mentioned, we plan to introduce a new due diligence requirement for donors to submit a declaration on all donations above a set threshold. This will ensure that both recipients of donations and the Electoral Commission have the information necessary to check and enforce the overseas elector donation cap and minimum residency period and will guard against companies circumventing the rules by donating the same profits multiple times. We will also amend section PPERA s54A threshold to align with this declaration, helping to reduce the risk of foreign or impermissible donations being funnelled into UK politics. Taken together, these provisions represent a significant step forward in improving transparency and accountability within the political finance regime.
Source
Inquiry
Defending Democracy
Report
3rd Report - Political finance and foreign influence
18 Mar 2026
HC 720
Addressee Bodies
Cabinet Office
Timeline
Recommendation age
0.4 yrs
Report published
18 Mar 2026