Connect with us

Published

on

Ministers are drawing up plans restricting foreign donors from giving unlimited funds to UK political parties, Sky News understands.

Currently, political parties can accept donations from any company registered in the UK – and foreign donors can and have used these companies to make indirect contributions.

The rules allow for British companies to be used in this way even if they don’t make any money at all.

However, Sky News understands that officials are currently looking at restricting donations based on how much money a company makes – either using a profit or a share of revenue to calculate a potential cap for the amount each UK business can give.

The government says this is in line with its manifesto pledge to “protect democracy by strengthening the rules around donations to political parties”.

Senior government sources have told Sky News these changes are partially about Elon Musk.

Officials are said to be anxious about the rumoured donation of $100m (about £80m) that Musk has suggested he would make to Reform UK.

More on Labour

Please use Chrome browser for a more accessible video player

Nigel Farage says ‘Musk is going to support Reform’

The government’s thinking is that the tech billionaire is likely to do this just before the next election, and they hope they can pass their Elections Bill – the legislation through which the donation loophole would be closed – through parliament before that happens.

The bill would enter parliament in the next session, but ministers have told MPs that they should expect an update to these plans within months.

Musk’s donation would be an astronomical amount in the context of British politics.

The sum would trump all political donations that have been made to any political party this year – and would inevitably make a big impact on campaigning.

Elon Musk is not on the electoral register and the British arm of his company X – X.AI London Limited – has not yet made any money.

Under the proposed changes, this avenue of donating money to Reform UK would not be possible.

Total donations to major parties in 2024
Image:
Reform UK’s total received donations for 2024 would be considerably higher with £80m from Elon Musk

A government source said this is just one of the options on the table, adding that another change they are considering will mean enhanced due diligence checks on donations from unincorporated associations.

In exclusive polling, Sky News has found that any money given to parties by foreign donors is incredibly unpopular.

A total of 77% of respondents thought foreign nationals who are not registered to vote in the UK should not be allowed to donate to political parties, while only 7% thought they should be.

Even looking specifically at Reform UK voters, who would likely benefit from an Elon Musk donation, the percentage is roughly the same: 73% said they shouldn’t donate to British politics at all, while 7% said they should.

A total of 77% of respondents said foreign nationals should not be allowed to donate to UK political parties
Image:
A total of 77% of respondents said foreign nationals should not be allowed to donate to UK political parties

There is a lot of cash swirling all around Westminster and foreign money can and does enter UK politics.

Transparency International found almost £1 in every £10 donated to parties and politicians came from unknown or dubious sources between 2001 and 2024.

Whatever the motivation, these changes could bring greater transparency to what’s behind any murky money swirling into Westminster.

Continue Reading

Politics

Farage accused of wanting to ‘take UK backwards’ – as Brexit blamed for small boats crisis

Published

on

By

Farage accused of wanting to 'take UK backwards' - as Brexit blamed for small boats crisis

Nigel Farage will be accused of wanting to “take Britain backwards” by vowing to scrap trade agreements between the UK and EU, as the government seeks a permanent deal to cut checks on food and drink.

The Reform leader wants to ditch the prime minister’s Brexit reset package, unveiled earlier this year, which covers areas including fishing, defence, a youth experience scheme, and passport e-gates.

Politics Hub: Follow latest updates

It also includes a temporary deal to reduce the red tape on imports and exports of some fruit and veg, meaning no border checks or fees are paid – and the government wants to make it permanent when it expires in 2027.

Please use Chrome browser for a more accessible video player

Is the UK-EU deal really that good?

The minister tasked by Sir Keir Starmer with improving UK-EU ties is Nick Thomas-Symonds, who will use a speech later today to say Mr Farage “wants Britain to fail”.

Writing in The Telegraph in May, the arch-Brexiteer said Labour’s deal takes the UK “back into the orbit of Brussels”, and vowed a Reform government “would undo all of this legislation”.

Speaking in central London, Mr Thomas-Symonds will say undoing it would slash “at least £9bn from the economy, bringing with it a risk to jobs and a risk of food prices going up”.

The Cabinet Office minister will accuse him of offering “easy answers, dividing communities and stoking anger”.

A Reform UK spokesperson has dismissed the incoming criticism, claiming “no one has done more damage to British businesses than this Labour government”, pointing to tax rises on firms and the unemployment rate.

Nick Thomas-Symonds is on Sky News Breakfast – watch live from 7.15am.

Cabinet Office minister Nick Thomas-Symonds
Image:
Cabinet Office minister Nick Thomas-Symonds

‘Farage’s Brexit caused the small boats’

The Labour minister’s criticism will come a day after Mr Farage revealed his controversial plans to stop small boat crossings, vowing any such arrivals – including women and children – would be detained and deported.

“If we do that, the boats will stop coming within days, because there will be no incentive to pay a trafficker to get into this country,” he told a news conference on Tuesday.

Reform would repeal the Human Rights Act and leave the European Convention on Human Rights (ECHR), saying they have allowed foreign offenders to challenge their own deportations through the courts and remain in the UK.

Mr Farage said such treaties are “outdated”, and that the British public were in a state of either “despair” or “anger” about illegal immigration.

Nigel Farage unveils his controversial deportation plans on Tuesday. Pic: PA
Image:
Nigel Farage unveils his controversial deportation plans on Tuesday. Pic: PA

Labour dismissed the proposals as “unworkable”, while the Tories said he’d stolen their ideas.

Liberal Democrat leader Sir Ed Davey was more personal, suggesting Mr Farage himself was responsible for the massive rise in small boat crossings.

“The truth is, it was Farage’s Brexit that caused the small boats,” Sir Ed said. “Before Brexit, we could send back any illegal immigrants coming over in a small boat.”

Read more:
Why Farage’s small boats plan is not really about policy
How Farage’s new ‘leave’ campaign could work and impact you

Please use Chrome browser for a more accessible video player

Davey: Farage wants to ‘follow Putin’

Did Brexit make things harder?

Brexit ended UK participation in the so-called Dublin agreement which governs EU-wide asylum claims. It means people should be processed for asylum in the country at which they first entered the bloc.

Sky News previously revealed how former immigration minister Chris Philp, now shadow home secretary, admitted it made returning illegal immigrants harder.

But Britain’s membership of the EU did not stop all asylum arrivals. And many EU countries where people first arrive, including Italy, do not apply the Dublin rules.

Sir Ed said the government was now reduced to doing individual deals with countries to tackle the issue.

Labour are banking on a one in, out deal with the French, which will see the UK send asylum seekers to France in exchange for ones with links to the UK.

Continue Reading

Politics

Trump Jr. joins Polymarket board as prediction market eyes US comeback

Published

on

By

Trump Jr. joins Polymarket board as prediction market eyes US comeback

Trump Jr. joins Polymarket board as prediction market eyes US comeback

Donald Trump Jr. has joined Polymarket’s advisory board as 1789 Capital invests in the platform, tying the prediction market more closely to US politics.

Continue Reading

Politics

Japan wrote the first stablecoin rulebook — so why is the US pulling ahead?

Published

on

By

Japan wrote the first stablecoin rulebook — so why is the US pulling ahead?

Japan wrote the first stablecoin rulebook — so why is the US pulling ahead?

“Japan prizes systemic stability above innovation speed, while the US is signaling a bigger market-opening play,” said Startale Group’s Takashi Tezuka.

Continue Reading

Trending