The House of Lords will debate changes to the laws governing political donations on Monday, a day after Reform UK announced it had received £72 million from two billionaires. The substantial donations from Ben Delo and Christopher Harborne, both British citizens who have spent time living abroad, have intensified calls for stricter regulations.
The government is proposing to alter legislation concerning political donations from British expatriates. Under these proposed changes, a cap of £100,000 would be introduced, with a provision to backdate its application to March 25. This move comes as part of a broader effort to counter foreign influence in UK politics, following a review by former civil servant Philip Rycroft.
Reform UK has characterized these proposed changes as an attempt by the Labour Party and its affiliated unions to “rig the system,” asserting that their opponents cannot win a fair election. Nigel Farage, leader of Reform UK, has been vocal on the matter.
Further debate is expected in the House of Lords regarding the bill that would implement the £100,000 donation cap for British citizens residing overseas. Labour peer Lord Wills has indicated an intention to amend the bill to include caps on donations from individuals living within the UK.
Sharon Graham, general secretary of Unite the Union, a significant funder of the Labour Party, supports limits on individual donations. She stated that while her union represents “everyday workers giving 10p a week,” the actions of “billionaires splashing out millions” represent a different category of financial influence.
Questions persist regarding Reform UK's ability to retain the full £72 million. Robert Jenrick, the party's economic spokesperson, asserted on Sunday that the donations were “entirely in line with the law as it is, and as far as we know, the law as it's going to be in the future.”
The government's proposed legislation also includes a minimum residency period during which the £100,000 cap would still apply to individuals who return to the UK. This proposed rule would remain in effect for the remainder of the calendar year in which they return, and for the entire subsequent calendar year.
Housing Secretary Angela Rayner commented on Sunday that the rule changes would apply retrospectively, and any party not in compliance would be required to “return that money.” However, she declined to comment specifically on Delo and Harborne's circumstances due to a lack of understanding of their individual situations.
Reports from The Times in June indicated that Harborne, who had been based in Thailand, had registered to vote in the UK. Delo had previously informed The Telegraph in April of his intention to move back from Hong Kong. BBC News has learned that both Delo and Harborne have returned to the UK, with Delo reportedly having been back since last year.
The government has previously expressed its determination to address the issue of “mega-donors” and has established a new taskforce to tackle this matter.