Huge change to political donation guidelines to shut loopholes on overseas money

Labour frontbencher Steve Reed today unveils legislation to stop foreign donors interfering with UK politics – while also letting 16 and 17 year olds vote in elections for the first time

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Steve Reed will today set out the Representation of the People Bill(Image: PA)

A long-awaited clampdown on foreign donors interfering in UK politics will be unveiled today

Companies will be barred from donating to political parties if they cannot prove a genuine link to the UK. The move will close a major loophole which experts believe means cash from overseas is being ploughed into the UK through shell companies.

The Government says the case of crooked Reform politician Nathan Gill – who took cash from Russian sources to ask questions – shows the need to stand up to foreign influence. Steve Reed, Secretary of State for Housing, Communities and Local Government, said: “The Representation of the People Bill will usher in a new era for our democracy – one that protects against foreign interference and empowers young people.

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“With growing threats from abroad, now is the time to make changes to make our elections secure and get young people engaged in them.” Companies that donate to British political parties will be required to show they are headquartered in the UK, majority owned or controlled by UK electors or citizens.

They must also show they have enough cash to cover the donation – a move the Government says will close down foreign actors’ ability to use shell companies. The Bill will also include Labour’s promise to give voting rights to 16 and 17 year olds, which was promised in its general election manifesto.

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Samantha Dixon, Minister for Democracy, said: “I know from speaking to so many passionate young people just how keen they are to get involved in our democracy. With democracy taught as part of the national curriculum, millions of young people will have the knowledge and confidence to take part in our democratic process for the first time.

“This landmark Bill will make their voices heard, while cracking down on those who wish to intimidate people taking part in our democracy and subvert our elections with illicit foreign money.”

Gill, Reform’s former leader in Wales, was jailed in November after admitting eight counts of bribery after taking thousands of pounds to deliver scripted speeches and push a pro-Russian agenda on TV when he was an MEP.

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