The UK Government has announced landmark measures aimed at protecting the country’s democratic processes from foreign financial influence and interference. The reforms, which are set to come into force immediately, include a new annual cap on political donations from overseas electors and a ban on cryptocurrency donations to political parties and candidates.
Under the new rules, British citizens living abroad who remain on the UK electoral register will face an annual limit of £100,000 on political donations, as well as on regulated transactions such as loans. The government says the measure is designed to prevent individuals who do not live and work in the United Kingdom from exerting disproportionate financial influence on the country’s politics. The reforms will be introduced through amendments to the Representation of the People Bill currently being considered in Parliament, with retrospective effect from today. Once the legislation comes into force, political parties, candidates, and other regulated entities will have 30 days to return any unlawful donations received during the interim period, after which enforcement action may follow.
The government has also announced an immediate ban on cryptocurrency being used for political donations. Officials say the move is necessary because crypto transactions can be difficult to trace, raising concerns that unregulated or foreign funds could be channelled into UK politics. The ban will remain in place until Parliament and the Electoral Commission determine that sufficient regulation exists to ensure transparency and accountability.
The changes follow the findings of the Rycroft Review, an independent review led by former Permanent Secretary Philip Rycroft. The review was commissioned in December 2025 by Steve Reed to investigate foreign financial interference in the UK’s political and electoral systems. The government has accepted two key recommendations from the report and said it will consider the remaining proposals, including expanding information-gathering powers for the Electoral Commission to help identify and investigate wrongdoing.
Speaking about the reforms, Steve Reed said the government would take whatever action is necessary to protect democracy and prevent foreign interference or illicit funding from undermining the integrity of elections. Dan Jarvis also emphasised that national security remains a top priority and noted that the announcement complements broader measures outlined in the Counter Political Interference and Espionage Action Plan launched in November.
The Representation of the People Bill already includes stronger transparency requirements around political donations, such as ensuring companies making donations have sufficient revenue to cover them, are headquartered in the UK, and are majority-owned by UK electors or citizens resident in the country. The reforms are intended to prevent organisations without genuine business activity or a UK presence from influencing elections through financial contributions. Additional measures will strengthen oversight of unincorporated associations, give the Electoral Commission greater enforcement powers, and require political parties to carry out more robust “Know Your Donor” checks before accepting funds.
The review also highlighted evolving threats to British democracy, pointing to cases such as former MEP Nathan Gill and lawyer Christine Lee, which raised concerns about potential vulnerabilities in the political system. According to the government, these developments underline the need for stronger safeguards to prevent foreign actors from influencing UK politics and elections.
