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New analysis from Transparency International UK raises questions over £115 million of political donations and calls for reform to protect UK democracy from impact of big money
New report from Transparency International UK calls for political finance reforms after raising concerns over the corrosive impact of big money in UK politics.
Cheques and balances: Countering the influence of big money in UK politics, the most comprehensive analysis of suspect funds in UK politics to date, finds that millions of pounds donated to political parties and their members have come from unknown or questionable sources, including those who have been accused or found to have bought political access or involved in criminality.
Of the £115 million of suspect donations identified, £48.2 million is linked to donors who have been alleged or proven to have bought privileged access, potential influence and or political honours such as knighthoods or peerages.
A further £42 million pounds came from individuals alleged or proven to have been involved in corruption, fraud and/or money laundering, raising questions about who funds our politics and the due diligence undertaken by political parties on their donors.
The true source of a further £38.6 million is unknown as it comes funnelled through opaque unincorporated associations which, despite transparency laws, hide the source of their funds from the public.
Experts warn Britain’s weak political finance rules are failing to stop a new arms race in political spending. With the cost of politics continuing to grow, made worse by the Government raising campaign limits in 2023, fundraisers increasingly rely on big donors to keep up with demand. This reliance on a small group of very wealthy donors exposes parties and their politicians to foreign interference, undue influence and powerful interests with little accountability for those who abuse the system.
Transparency International UK proposes 15 key reforms to end the dominance of big money in politics. These include reducing the cost of elections through lower spending limits, closing loopholes that allow dark money into our democracy, and an annual donation cap of £10,000, as recommended by the Committee on Standards in Public Life.
Almost £1 in every £10 pounds reported by political parties and their members since 2001 has come from unknown or questionable sources
£48.2 million comes from donors alleged or proven to have bought privileged access, potential influence and/or honours
£42 million comes from donors alleged or proven to have been involved in other corruption, fraud and/or money laundering
£38.6 million comes from unincorporated associations who have not reported the source of their income, despite Parliament introducing new transparency rules in 2010 of which at least £5.5 million is particularly high-risk'
£13 million comes from donors who are alleged or proven to be intermediaries for foreign funds and/or a hidden source
£10.9 million comes from companies who have not made sufficient profits to support the political contributions they have made
£4.6 million comes from foreign governments, parliaments and statelinked groups
Rose Whiffen, Senior Research Officer, Transparency International UK said:
“Britain’s weak political finance rules are failing to stop the corrosive effects of big money on our political system. We are now seeing a new arms race in political spending with parties every more reliant on the super-rich for support.
“The overreliance on a small number of wealthy donors exposes parties and their politicians to powerful interests and the risks of foreign interference and undue influence shaping our politics.
“Only through reforms to tighten spending rules, bring dark money out of the shadows and improve accountability for those who abuse the system can we loosen the grip of big money and improve the integrity of our political system.”
Transparency International UK makes a series of recommendations across three areas that would help to safeguard the integrity of UK democracy and end the influence of big money:
End the arms race in campaign spending
Lower spending limits for elections, including leadership contests, to reduce campaign costs and reliance on large donations.
Bring dark money out of the shadows
Introduce an Elections Bill to stop funds of unknown origin from making their way into political coffers, via unincorporated associations and UK shell companies.
Reduce the reporting threshold for political donations and clarify reporting requirements for candidates during the ‘long campaign’.
Require UK political parties to adopt and publish policies outlining how they manage funds of questionable origin.
Uphold the integrity of our political system
Restore the independence of the Electoral Commission and ensure it has the power to pursue effective enforcement action through civil and criminal law.
Introduce donation caps of £10,000 per year for individuals and organisations, as recommended by the Committee on Standards in Public Life, to remove the corrupting influence of big money in politics.
Close loopholes to ensure overseas trips for Parliamentarians are only funded by trusted sources, and publish clearer guidance on parliamentarian’s acceptance of gifts and hospitality
Read the full report here.
