Government announces stricter donation rules to strengthen election transparency and integrity
The UK Government has announced a new package of political finance reforms designed to strengthen safeguards against foreign money influencing elections and to improve transparency around political donations. The measures, published on 6 July 2026, form part of the government’s response to the independent Rycroft Review and will be introduced through amendments to the Representation of the People Bill.
Under the new proposals, individuals who have recently become eligible UK electors or returned to the UK electoral register will face tighter restrictions on making large political donations. The government will introduce a time-based cap on substantial donations, meaning people returning or relocating to the UK must be registered for a qualifying period, in the country for at least one full calendar year, before they can donate above the existing £100,000 annual cap on political donations from overseas electors. The change expands previously announced restrictions and aims to prevent the rules from being circumvented.
The reforms also introduce tougher requirements for company donations. Instead of assessing donations against company revenue, political contributions will now be measured against post-tax profits over the previous five years. According to the government, this approach will help ensure only legitimate UK-linked businesses can make political donations. The change follows recommendations made in the Rycroft Review and reflects feedback from the Electoral Commission and the Committee on Standards in Public Life.
New transparency requirements will also apply to election candidates. For the first time, candidates will be required to prove that campaign funding received before they officially become candidates came from legitimate sources. They will also be required to declare donations above £2,230 received before entering the regulated election period. The government said the measure closes a gap in the current rules, under which early donations may not be subject to the same disclosure requirements.
Housing Secretary Steve Reed said the reforms would prevent “dodgy funding” from influencing British democracy. Democracy Minister Samantha Dixon said the changes would close loopholes that could be exploited by those seeking to channel foreign money into UK politics while strengthening transparency around campaign finance. Chief Secretary to the Prime Minister said the measures were intended to stop foreign powers and other actors from attempting to influence UK elections through financial means.
The latest reforms build on measures announced in March 2026, including a cap on political donations from overseas electors and a ban on cryptocurrency donations until an appropriate regulatory framework is in place. The Government has accepted the remaining recommendations, but does not imply that every recommendation requires immediate legislation. Plans to advance the legislative changes will be madewhen the Representation of the People Bill returns to the House of Commons for its Report Stage during the week beginning 13 July 2026.