‘The Representation of the People Bill is essential – but it could be even stronger’

Across Britain, trust in politics is increasingly fragile. Too many voters think that money talks more than their ballot; and that those with the deepest pockets have easy access to power. If we are serious about rebuilding that trust, then we must tackle this problem head on. That is why the Representation of the People Bill really matters.

This landmark piece of legislation introduces the most ambitious changes to Britain’s democracy for a generation. The wide-ranging Bill will allow 16 and 17-year-olds to vote in all elections, tighten the rules on suspect political donations, and effectively ban secretive crypto donations to political parties. 

Each of these measures is essential to rebuilding trust in our democracy. And each of these measures sends an unambiguous message that this Labour Government takes the health of our democracy far more seriously than its predecessor.

In recent years – and at an alarming rate, over recent months – a series of damaging cases have exposed the vulnerabilities within Britain’s political system. 

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Back in 2019, many will remember when a former Russian arms industry tycoon with connections to the Kremlin, Alexander Temerko, donated over £1 million to the Conservative Party. This eye-catching donation made it clear that our political parties are far too vulnerable to foreign interference. 

And who could forget that the former leader of Reform UK in Wales, Nathan Gill, was sent to prison for 10 and a half years for acting on behalf of Putin’s regime in exchange for cash rewards. 

But we know that corruption, undue influence, and foreign interference is not limited to Russia alone. The worrying range of threats posed means that we must fight back to protect Britain’s democratic institutions from harm. 

Many of the necessary measures are already included in this legislation. But effectively defending our democracy requires addressing some remaining gaps. 

The Representation of the People Bill is our chance to close these loopholes once and for all. At Committee Stage, I raised three key tweaks to the Bill which will strengthen our defences and protect Britain’s democracy. 

Closing donation disclosure loopholes for new parties

Last February, Rupert Lowe launched a new political party, Restore Britain. Prior to launch, Restore Britain was a ‘political movement’ that may or may not have received substantial contributions from questionable sources before it was formally registered as a political party. 

The fact is that we simply do not know. There are no checks on the funds parties hold up to their registration. And there is nothing in this Bill to prevent brand new political parties side-stepping existing controls on donations by accepting donations before registering. 

Addressing this gap is critical in an age where foreign and undue interference is rife. We should not wait until formal registration before asking questions about the true origins of big political donations. 

I firmly believe that introducing checks on significant funds that parties hold upon registration should be included within the Bill, to crack down on new parties accepting major donations without any scrutiny.

Scrutinising pre-election gifts given to politicians

We should not wait until a general election is called to then ask serious questions about donations and gifts received by soon-to-be politicians.

Just last month, we found out that Nigel Farage avoided scrutiny concerning a £5m gift taken from a billionaire who lives halfway across the world. It is reported that Mr Farage received the gift very shortly before he announced he was running to become a Member of Parliament. 

The leader of Reform UK subsequently announced a crypto tax cut policy that – in my view – could directly benefit his gift-giving billionaire friend. 

And we must not forget that this is the same billionaire who has since been bankrolling his party to the tune of £12 million. 

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I remain deeply concerned that there is a clear conflict of interest for Mr Farage – and that the billionaire in question may have undue influence over a senior British politician.

This scandal is far too serious to ignore. As part of this Bill, we urgently need improved transparency and scrutiny of pre-candidacy gifts and donations to politicians. 

Closing in on shell companies

Company donations also carry a significant risk of nefarious interference. At least one in ten pounds donated by companies to political parties come from individuals who could not donate directly, and around a quarter of these funds are untraceable. 

With this worrying trend in mind, the Bill significantly tightens up the rules around corporate donations. A company will only be eligible to donate if it has sufficient revenue to fund its donations, if the company is headquartered in this country, and if it is majority owned by British voters. 

These restrictions are welcome, but I fear that the door is still open to foreign and malign actors using companies as vehicles for their shady donations. Revenue could be inflated or shifted between subsidiaries by those seeking to avoid these new restrictions.

As recommended by Philip Rycroft (in his Independent Review) and the Electoral Commission, a better test would be to only allow donations made from company profits which have been taxed in this country. We must ensure that donations come from real value generated here, not from funds funnelled into our political parties through complex corporate structures.

As we look ahead, I hope that Ministers will hear not only the enthusiastic support for this landmark Bill, but also the strength of feeling that the Bill must be ambitious enough to tackle the scale of the threat that we currently face.

We must rebuild trust in our democratic institutions and protect our democracy from deep pocketed individuals and unwanted interference. This is our opportunity to honour that promise in full.

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