Drawn up by former permanent secretary Philip Rycroft, the review called for a pause on cryptocurrency donations, and also a cap on donations from British voters abroad.
Keir Starmer confirmed the pause to crypto donations(Image: Bloomberg, Bloomberg via Getty Images)
Political parties will be immediately banned from accepting donations in cryptocurrencies, Keir Starmer has announced.
The Government will also cap donations from UK citizens living abroad who are still on the electoral register in line with former top civil servant Philip Rycroft’s recommendations.
It follows a review into foreign interference in British politics, ordered by ministers after Reform UK’s former leader in Wales, Nathan Gill, was jailed for trousering bribes from Moscow.
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Steve Reed warned dirty money was putting elections at risk(Image: Getty)
Speaking at PMQs, the PM told MPs the Rycroft review set out the “stark threats posed by illicit finance”.
He said: “We will act decisively to protect our democracy. That will include a moratorium on all political donations made through cryptocurrencies. I hope that will be welcomed across the House. There is only one party leader who has shown he will say anything, no matter how divisive, if he is paid to do so.”
Under the new rules confirmed on Wednesday, British citizens living abroad will now face an annual cap on their political donations of £100,000 and regulated transactions such as loans of the same value. Political parties will have 30 days to return donations which exceed the £100,000 cap. Mr Rycroft’s recommendations come amid concerns that digital currencies could be used to hide where funding has come from. Mr Rycroft also proposed a ban on foreign-funded online political ads.
The new rules will be applied retrospectively to all cryptocurrency donations received from today, Communities Secretary Steve Reed confirmed. He said: “This Government will do whatever is necessary to protect our democracy. Foreign interference and dirty money are menacing the integrity of our elections. A ban on cryptocurrency donations is vital.
“The UK will now be a world-leader in stamping out this growing threat to freedom, and we will stop hostile foreign states and others who want to weaken and exploit the UK by stoking division and hatred. It is our patriotic duty to safeguard the British people’s right to freely choose their own government.”
Mr Rycroft wrote that “foreign interference in our politics is real and persistent”, with the UK a target for espionage from Russia, China and Iran. He even pointed to the risk from from Donald Trump’s US. Mr Rycroft said: “Separately, beyond these hostile state threats, I am also cognisant of a potential new threat: an emerging willingness of foreign actors and private citizens, including from allies like the United States, to interfere in, and influence, politics abroad in pursuit of their own agenda.”
Responding, Dr Jess Garland, Director of Policy and Research for the Electoral Reform Society, said: “It is crucial that the public always trusts that politicians are acting in their interest and not of those with the deepest pockets. Our politics should not be for sale to the highest bidder or left open to the influence of hostile foreign powers. Trust in politics is at a record low. To rebuild it, the rules around money in politics need to ensure that politicians are always focused on the needs of voters, not donors.”
