Recommendation 20

It has been our consistent view that retrospective legislation is unacceptable other than in very exceptional circumstances. We have stressed that, when used, measures with retrospective effect must have the strongest possible justification and be drawn as narrowly as possible . 22 The Government argues that retrospective application of the restrictions on donations in the form of cryptoassets and the cap on donations from overseas contributors is necessary to prevent evasion of the new rules during the period between the announcement of the changes and commencement of the Bill’s relevant provisions. 23 We note that the provisions will not give rise to retrospective criminal sanctions relating to a donation or receipt of donations prior to commencement. However, a policy announcement does not, and cannot, change the law. We therefore conclude that the retrospective application of these measures to the date of the Secretary of State’s announcement on 25 March 2026 has not been sufficiently justified and would set an unwelcome precedent. Possible further measures