15 Accepted

The alternative version of Section 54A should specify that a regulated recipient may not accept...

Recommendation
The alternative version of Section 54A should specify that a regulated recipient may not accept a donation where there is ‘reasonable grounds to suspect’ that it derives from an impermissible foreign source, or has been provided in connection with an impermissible foreign source. Serious failures to conduct adequate due diligence in this regard should be subject to criminal proceedings. (Recommendation, Paragraph 95) 40
Government Response Summary
The government agrees with the objective and will commence Section 54A PPERA before the end of Parliament, introducing a declaration requirement for donations above a set threshold, establishing criminal liability for false declarations, and amending the S54A threshold.
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.
Addressee Bodies
Cabinet Office
Timeline
Recommendation age 0.4 yrs
Report published 18 Mar 2026