Democracy Minister Rushanara Ali has announced plans for stricter measures to prevent foreign interference in UK politics, amid growing concerns over potential donations from overseas billionaires like Elon Musk to British political parties.
The debate intensified after reports suggested Musk now an adviser to US President Donald Trump could channel up to £78 million ($100 million) to Reform UK through a UK-based arm of his company, X. While foreign individuals cannot directly donate to UK parties, loopholes allow funds to be routed through British-registered firms. A public petition demanding the closure of these gaps has garnered over 142,000 signatures, prompting MPs to debate the issue in Parliament.
Labour MP Irene Campbell, leading the discussion, warned that wealthy foreign figures could exploit legal workarounds to influence UK politics. Multiple MPs raised alarms about Musk’s potential involvement and alleged ties between Reform UK leader Nigel Farage and foreign actors.
Ali acknowledged the risks, citing attempts by nations like Russia, China, and Iran to meddle in British democracy. She pledged to introduce tighter controls, including enhanced donor checks and stricter rules on company donations. However, she ruled out capping donation sizes or blocking funds from foreign nationals with legitimate UK connections, citing the need for parties to fundraise effectively.
The controversy follows Reform UK’s electoral breakthrough last year, with Farage initially welcoming Musk’s support. However, relations soured after Musk suggested replacing Farage as leader, backing MP Rupert Lowe instead who was later expelled from the party. The episode highlighted vulnerabilities in UK campaign finance laws, fueling calls for reform.
Electoral Commission chief Vijay Rangarajan urged swift action, proposing limits on corporate donations tied to UK profits and greater transparency for political funding. “We think parties need a ‘know-your-donor’ approach,” he said, emphasizing that changes should be implemented within the next year.
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