3rd Report - Political finance and foreign influence

Select Committee
National Security Strategy (Joint Committee) HC 720 18 March 2026
Report Status Government responded
Conclusions & Recommendations 23 items (20 recs)
Government Response (AI assessment · 23 of 23 classified)
Government response
2nd Special Report - Political finance and foreign influence: Government and Electoral Commission responses · published 15 Jul 2026

Recommendations & Conclusions

23 results
1 Recommendation Deferred
The risk of foreign influence in the UK’s political finance system is real.
Recommendation
The risk of foreign influence in the UK’s political finance system is real. We believe the threat is likely to grow out to the next election, particularly as the value of influencing the UK’s position on international policy increases. The … Read more
Government Response Summary
The government acknowledges the report's concerns and states that its comprehensive response, detailing actions to strengthen safeguards against foreign interference in political finance, has been published in response to the Rycroft Review.
Cabinet Office
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2 Recommendation Acknowledged
The governance and accountability arrangements for criminal enforcement of illegal political finance interference are inadequate.
Recommendation
The governance and accountability arrangements for criminal enforcement of illegal political finance interference are inadequate. Responsibilities and capabilities are dispersed across the Electoral Commission, the Metropolitan Police Service, Counter Terrorism Policing, MI5, the National Crime Agency, the National Police Chiefs’ … Read more
Government Response Summary
The government agrees on the vital need for appropriate structures to allow enforcement agencies to operate effectively. It states that the establishment of the new National Police Service provides an opportunity to strengthen capabilities and will consider how different functions could be brought together through forthcoming reforms.
Cabinet Office
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3 Recommendation Acknowledged
The Government should establish a centralised Political Finance Enforcement Unit.
Recommendation
The Government should establish a centralised Political Finance Enforcement Unit. This should be a joint unit, which could be housed in the National Crime Agency. It should hold the overall national lead and accountability for proactive assessments and criminal investigations … Read more
Government Response Summary
The government agrees on the need for policing to have specialist expertise, coordination, and national capacity for investigating political finance. It will use the establishment of the new National Police Service as an opportunity to strengthen and formalise capabilities, considering how functions could be brought together, but does not commit to establishing a specific unit.
Cabinet Office
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4 Recommendation Acknowledged
The Unit should have formalised information sharing agreements with the parent organisations of participating personnel,...
Recommendation
The Unit should have formalised information sharing agreements with the parent organisations of participating personnel, to ensure the parent organisation’s powers may be deployed during the course of investigations. (Recommendation, Paragraph 48) Crypto Read more
Government Response Summary
The government agrees on the need for effective structures and resources and will consider strengthening and formalising capabilities, including how functions could be brought together, as part of establishing the new National Police Service.
Cabinet Office
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5 Recommendation Accepted
Crypto donations pose an unnecessary and unacceptably high risk to the integrity of the political...
Recommendation
Crypto donations pose an unnecessary and unacceptably high risk to the integrity of the political finance system and public trust in it. We accept that future regulations may institutionalise the use of alternative payment systems for use in donations. At … Read more
Government Response Summary
The government wholeheartedly agrees with the committee's conclusion and has accepted the recommendation to introduce an immediate moratorium on cryptoasset donations to political parties, effective from March 25, 2026, until sufficient safeguards are in place.
Cabinet Office
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6 Recommendation Accepted
Crypto also poses wider upstream risks to the integrity of political finance: donors can convert...
Recommendation
Crypto also poses wider upstream risks to the integrity of political finance: donors can convert ‘dirty’ foreign crypto funds into ‘clean’ UK fiat and then donate it without arousing much suspicion. A ‘last mile’ ban on crypto donations is therefore … Read more
Government Response Summary
The government wholeheartedly agrees and has accepted a recommendation from the Rycroft Review to introduce an immediate moratorium on cryptoasset donations, which will apply from March 25, 2026.
Cabinet Office
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7 Recommendation Accepted
The Government should introduce a binding moratorium on crypto donations as an amendment to the...
Recommendation
The Government should introduce a binding moratorium on crypto donations as an amendment to the Representation of the People Bill. This moratorium should remain in place until the Electoral Commission has issued statutory guidance on crypto donations which applies to … Read more
Government Response Summary
The government wholeheartedly accepts the recommendation to introduce a binding moratorium on crypto donations, confirming that it will apply to all such donations from 25 March 2026, with a 30-day period for returning or forfeiting previous donations.
Cabinet Office
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8 Recommendation Accepted
The Representation of the People Bill contains inexplicable deficiencies on corporate donations.
Recommendation
The Representation of the People Bill contains inexplicable deficiencies on corporate donations. We support limiting donations to those carrying out meaningful activity in the UK. However, the Bill contains a loophole, which would allow companies to donate the upper limit … Read more
Government Response Summary
The government agrees with the concern about a loophole in corporate donations allowing multiple contributions and has accepted recommendations to fix it. It is introducing a new requirement for donors to submit a declaration to ensure companies do not evade rules on donation limits.
Cabinet Office
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9 Recommendation Accepted
The Government should amend Part 4 of the Representation of the People Bill to specify...
Recommendation
The Government should amend Part 4 of the Representation of the People Bill to specify that limits on corporate donations apply to the total amount per company, rather than per recipient. (Recommendation, Paragraph 77) 39 Criminal liability for acting as … Read more
Government Response Summary
The government agrees with the concern regarding corporate donation limits and has accepted in full a similar recommendation from the Rycroft review, also introducing a declaration requirement for donors above a set threshold.
Cabinet Office
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10 Conclusion Accepted
The Representation of the People Bill does not include strong enough safeguards to prevent UK...
Conclusion
The Representation of the People Bill does not include strong enough safeguards to prevent UK subsidiaries donating on behalf of foreign parent companies or wealthy individuals. There are further loopholes enabling donors to receive large sums of foreign money in … Read more
Government Response Summary
The government agrees with the concern regarding corporate donation limits and has accepted a similar Rycroft review recommendation in full, also introducing a declaration requirement for donors above a set threshold to prevent evasion.
Cabinet Office
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11 Recommendation 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 … Read more
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.
Cabinet Office
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12 Recommendation Accepted
The Government should amend the Representation of the People Bill to introduce an alternative version...
Recommendation
The Government should amend the Representation of the People Bill to introduce an alternative version of Section 54A in primary legislation. This would create a critical mechanism to implement much needed changes. (Recommendation, Paragraph 92)
Government Response Summary
The government agrees with the objective and will commit to commencing Section 54A PPERA before the end of Parliament, introducing a declaration requirement for donations above a set threshold, and amending the S54A threshold.
Cabinet Office
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13 Recommendation Accepted in Part
The alternative version of Section 54A should reduce the declaration threshold of funds received in...
Recommendation
The alternative version of Section 54A should reduce the declaration threshold of funds received in connection with a donation to £500. This would limit the risk of foreign money being channelled through permissible donors. (Recommendation, Paragraph 93) Read more
Government Response Summary
The government agrees with the objective and will amend Section 54A PPERA's threshold to align with a new declaration requirement for donations above a set amount, but does not commit to the specific £500 threshold.
Cabinet Office
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14 Recommendation Accepted
The alternative version of Section 54A should specify that the relevant persons are liable if...
Recommendation
The alternative version of Section 54A should specify that the relevant persons are liable if they fail to act on ‘reasonable grounds to suspect’ that a false declaration or otherwise impermissible donation is being facilitated. Such changes would bring the … Read more
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 with criminal liability for false declarations, and a new due diligence requirement for donors.
Cabinet Office
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15 Recommendation 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 … Read more
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.
Cabinet Office
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16 Recommendation Deferred
The Government should amend the Representation of the People Bill to increase maximum custodial sentences...
Recommendation
The Government should amend the Representation of the People Bill to increase maximum custodial sentences to three years for the most serious breaches of political finance laws involving impermissible foreign money. This would improve deterrence and also enable law enforcement … Read more
Government Response Summary
The government acknowledges the importance of the issue but states that increasing maximum custodial sentences raises complex issues that cannot be fully developed within the Representation of the People Bill's timeframes, committing instead to further analysis and targeted consultation.
Cabinet Office
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17 Recommendation Accepted
The Government should review options to reduce the risk of foreign money entering UK political...
Recommendation
The Government should review options to reduce the risk of foreign money entering UK political finance via individual donors whose primary long- term residence is overseas. For example, individual donors whose primary residence is overseas could be required to have … Read more
Government Response Summary
The government agrees with the concern and will introduce a £100,000 annual cap on donations from overseas electors, effective from March 2026, alongside a minimum residency period for individuals returning to the UK.
Cabinet Office
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18 Conclusion Accepted
We welcome the proposed improvement to the Electoral Commission’s data sharing powers under Clause 69.
Conclusion
We welcome the proposed improvement to the Electoral Commission’s data sharing powers under Clause 69. (Conclusion, Paragraph 107)
Government Response Summary
The government acknowledges the importance and confirms it is taking forward measures through the Representation of the People Bill to extend the Electoral Commission's data sharing and receiving powers. It states it will amend the Bill accordingly, though some tools require further consideration.
Cabinet Office
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19 Conclusion Accepted
The Electoral Commission needs new powers to ask for information about whether the source of...
Conclusion
The Electoral Commission needs new powers to ask for information about whether the source of funds used in political donations is permissible. This is vital to ensuring effective deterrence and enabling the regulator to identify risks of foreign money. At … Read more
Government Response Summary
The government recognizes the importance of equipping the Electoral Commission and will extend its powers to require information disclosure outside of formal investigations and enable information sharing with relevant public authorities.
Cabinet Office
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20 Recommendation Accepted in Part
The Government should create a power for the Electoral Commission to compel financial institutions to...
Recommendation
The Government should create a power for the Electoral Commission to compel financial institutions to provide information relating to the source funds used in regulated political donations and regulated campaign spending. This power should also apply to crypto currency platforms. … Read more
Government Response Summary
The government will extend the Electoral Commission's powers to require information disclosure outside formal investigations and enable information sharing with public authorities, but proposals for tools like Unexplained Wealth Orders require careful consideration and further engagement.
Cabinet Office
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21 Recommendation Accepted in Part
The Electoral Commission and law enforcement should have powers to receive relevant information from HM...
Recommendation
The Electoral Commission and law enforcement should have powers to receive relevant information from HM Revenue and Customs in connection with an investigation into suspicions of foreign money. We further recommend exploring options to make better use of existing powers, … Read more
Government Response Summary
The government will amend the Representation of the People Bill to enable the Electoral Commission to share and receive information from relevant public authorities, including HMRC, to support effective enforcement. However, proposals for Unexplained Wealth Orders require further detailed consideration with stakeholders.
Cabinet Office
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22 Recommendation Accepted in Part
The Government’s legislative changes will only be meaningful if the Electoral Commission, police and National...
Recommendation
The Government’s legislative changes will only be meaningful if the Electoral Commission, police and National Crime Agency are adequately resourced to enforce the rules. (Conclusion, Paragraph 123)
Government Response Summary
The government recognises the importance of adequately resourcing enforcement agencies but rejects the proposed mechanism of formalised annual resourcing updates to the Committee. It states that resourcing questions will be addressed as part of broader, system-wide reviews during the establishment of the new National Police Service.
Cabinet Office
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23 Recommendation Rejected
We recommend the Electoral Commission, Metropolitan Police Service and National Crime Agency provide an annual...
Recommendation
We recommend the Electoral Commission, Metropolitan Police Service and National Crime Agency provide an annual resourcing update to this Committee. This should set out their resourcing levels and the extent to which these are adequate to deliver on objectives to … Read more
Government Response Summary
The government recognizes the importance of adequate resourcing but does not consider an annual resourcing update to the Committee the most appropriate mechanism, suggesting broader system-wide reviews instead.
Cabinet Office
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