Political Parties: Finance
The question
To ask the Secretary of State for Housing, Communities and Local Government, with reference to the Representation of the People Bill Impact Assessment, February 2026, para 386, what assessment he has made of the potential impact of corporate donation reforms on small businesses wishing to make donations.
Answered by Samantha Dixon
As set out in Representation of the People Bill Impact Assessment, Table 8, we estimate that around 26% - 29% of donations from companies made in the year prior to the 2024 General Election would not meet the permissibility criteria.
All businesses, including small businesses, will need to meet strict new criteria in order to make political donations. Requiring donors to demonstrate a genuine UK connection is key in protecting against foreign actors from using shell companies to channel foreign or illlicit money into UK politics.
Impacts have not been assessed at an individual party level. We are not restricting donations to specific parties; the measures apply equally to recipients of political donations. This ensures that donees adhere to the same standards, thereby safeguarding all UK political parties from foreign interference.
The vast majority of businesses do not make political donations and therefore will not be affected by these rule changes.
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