Select Committee · National Security Strategy (Joint Committee)

Defending Democracy

Status: Open Opened: 24 Feb 2025 20 recommendations 3 conclusions 1 report
Clear

Reports

1 report
Title HC No. Published Items Response
3rd Report - Political finance and foreign influence HC 720 18 Mar 2026 23 Responded

Recommendations & Conclusions

13 items
5 Recommendation 3rd Report - Political finance and fore… Accepted

Crypto donations pose an unnecessary and unacceptably high risk to the integrity of the political...

Crypto donations pose an unnecessary and unacceptably high risk to the integrity of the political finance system and public trust in it. We accept that future regulations may institutionalise the use of alternative payment systems for use in donations. At present, however, the opportunity to evade rules is too high, … Read more

Government response AI summary
The government wholeheartedly agrees with the committee's conclusion and has accepted the recommendation to introduce an immediate moratorium on cryptoasset donations to political parties, effective from March 25, 2026, until sufficient safeguards are in place.
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Cabinet Office
6 Recommendation 3rd Report - Political finance and fore… Accepted

Crypto also poses wider upstream risks to the integrity of political finance: donors can convert...

Crypto also poses wider upstream risks to the integrity of political finance: donors can convert ‘dirty’ foreign crypto funds into ‘clean’ UK fiat and then donate it without arousing much suspicion. A ‘last mile’ ban on crypto donations is therefore not a panacea. Specialist capabilities to address upstream risks are … Read more

Government response AI summary
The government wholeheartedly agrees and has accepted a recommendation from the Rycroft Review to introduce an immediate moratorium on cryptoasset donations, which will apply from March 25, 2026.
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Cabinet Office
7 Recommendation 3rd Report - Political finance and fore… Accepted

The Government should introduce a binding moratorium on crypto donations as an amendment to the...

The Government should introduce a binding moratorium on crypto donations as an amendment to the Representation of the People Bill. This moratorium should remain in place until the Electoral Commission has issued statutory guidance on crypto donations which applies to its regulated entities. The Bill should be further amended to … Read more

Government response AI summary
The government wholeheartedly accepts the recommendation to introduce a binding moratorium on crypto donations, confirming that it will apply to all such donations from 25 March 2026, with a 30-day period for returning or forfeiting previous donations.
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Cabinet Office
8 Recommendation 3rd Report - Political finance and fore… Accepted

The Representation of the People Bill contains inexplicable deficiencies on corporate donations.

The Representation of the People Bill contains inexplicable deficiencies on corporate donations. We support limiting donations to those carrying out meaningful activity in the UK. However, the Bill contains a loophole, which would allow companies to donate the upper limit of their UK-generated revenue hundreds of times over to individual … Read more

Government response AI summary
The government agrees with the concern about a loophole in corporate donations allowing multiple contributions and has accepted recommendations to fix it. It is introducing a new requirement for donors to submit a declaration to ensure companies do not evade rules on donation limits.
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Cabinet Office
9 Recommendation 3rd Report - Political finance and fore… Accepted

The Government should amend Part 4 of the Representation of the People Bill to specify...

The Government should amend Part 4 of the Representation of the People Bill to specify that limits on corporate donations apply to the total amount per company, rather than per recipient. (Recommendation, Paragraph 77) 39 Criminal liability for acting as a foreign conduit Read more

Government response AI summary
The government agrees with the concern regarding corporate donation limits and has accepted in full a similar recommendation from the Rycroft review, also introducing a declaration requirement for donors above a set threshold.
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Cabinet Office
10 Conclusion 3rd Report - Political finance and fore… Accepted

The Representation of the People Bill does not include strong enough safeguards to prevent UK...

The Representation of the People Bill does not include strong enough safeguards to prevent UK subsidiaries donating on behalf of foreign parent companies or wealthy individuals. There are further loopholes enabling donors to receive large sums of foreign money in connection with a donation and not declare it. And it … Read more

Government response AI summary
The government agrees with the concern regarding corporate donation limits and has accepted a similar Rycroft review recommendation in full, also introducing a declaration requirement for donors above a set threshold to prevent evasion.
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Cabinet Office
11 Recommendation 3rd Report - Political finance and fore… Accepted

We welcome the Government’s commitment to commence Section 54A of the Political Parties, Elections and...

We welcome the Government’s commitment to commence Section 54A of the Political Parties, Elections and Referendums Act. But the provisions need more work to adequately address concerns about donors acting as conduits for foreign money. We are sceptical about simply commencing 54A via secondary legislation without amendments. (Conclusion, Paragraph 91) Read more

Government response AI summary
The government commits to commencing Section 54A PPERA before the end of this Parliament, introducing a declaration requirement, a new due diligence requirement, and amending the threshold to prevent foreign or impermissible donations.
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Cabinet Office
12 Recommendation 3rd Report - Political finance and fore… Accepted

The Government should amend the Representation of the People Bill to introduce an alternative version...

The Government should amend the Representation of the People Bill to introduce an alternative version of Section 54A in primary legislation. This would create a critical mechanism to implement much needed changes. (Recommendation, Paragraph 92)

Government response AI summary
The government agrees with the objective and will commit to commencing Section 54A PPERA before the end of Parliament, introducing a declaration requirement for donations above a set threshold, and amending the S54A threshold.
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Cabinet Office
14 Recommendation 3rd Report - Political finance and fore… Accepted

The alternative version of Section 54A should specify that the relevant persons are liable if...

The alternative version of Section 54A should specify that the relevant persons are liable if they fail to act on ‘reasonable grounds to suspect’ that a false declaration or otherwise impermissible donation is being facilitated. Such changes would bring the legislation in line with money laundering rules and the Proceeds … Read more

Government response AI summary
The government agrees with the objective and will commence Section 54A PPERA before the end of Parliament, introducing a declaration requirement for donations with criminal liability for false declarations, and a new due diligence requirement for donors.
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Cabinet Office
15 Recommendation 3rd Report - Political finance and fore… Accepted

The alternative version of Section 54A should specify that a regulated recipient may not accept...

The alternative version of Section 54A should specify that a regulated recipient may not accept a donation where there is ‘reasonable grounds to suspect’ that it derives from an impermissible foreign source, or has been provided in connection with an impermissible foreign source. Serious failures to conduct adequate due diligence … Read more

Government response AI summary
The government agrees with the objective and will commence Section 54A PPERA before the end of Parliament, introducing a declaration requirement for donations above a set threshold, establishing criminal liability for false declarations, and amending the S54A threshold.
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Cabinet Office
17 Recommendation 3rd Report - Political finance and fore… Accepted

The Government should review options to reduce the risk of foreign money entering UK political...

The Government should review options to reduce the risk of foreign money entering UK political finance via individual donors whose primary long- term residence is overseas. For example, individual donors whose primary residence is overseas could be required to have UK financial assets registerable with HM Revenue and Customs for … Read more

Government response AI summary
The government agrees with the concern and will introduce a £100,000 annual cap on donations from overseas electors, effective from March 2026, alongside a minimum residency period for individuals returning to the UK.
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Cabinet Office
18 Conclusion 3rd Report - Political finance and fore… Accepted

We welcome the proposed improvement to the Electoral Commission’s data sharing powers under Clause 69.

We welcome the proposed improvement to the Electoral Commission’s data sharing powers under Clause 69. (Conclusion, Paragraph 107)

Government response AI summary
The government acknowledges the importance and confirms it is taking forward measures through the Representation of the People Bill to extend the Electoral Commission's data sharing and receiving powers. It states it will amend the Bill accordingly, though some tools require further consideration.
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Cabinet Office
19 Conclusion 3rd Report - Political finance and fore… Accepted

The Electoral Commission needs new powers to ask for information about whether the source of...

The Electoral Commission needs new powers to ask for information about whether the source of funds used in political donations is permissible. This is vital to ensuring effective deterrence and enabling the regulator to identify risks of foreign money. At the moment the Electoral Commission’s powers are too circumscribed: it … Read more

Government response AI summary
The government recognizes the importance of equipping the Electoral Commission and will extend its powers to require information disclosure outside of formal investigations and enable information sharing with relevant public authorities.
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Cabinet Office

Oral evidence sessions

4 sessions
Date Witnesses
9 Feb 2026 Graeme Biggar CBE · National Crime Agency, Rachael Herbert · National Crime Agency View ↗
12 Jan 2026 Dr Sam Power · University of Bristol, Duncan Hames · Transparency International UK, Natasha Powell · Kraken Digital Asset Exchange, Tom Keatinge · RUSI View ↗
8 Sep 2025 Dr Susan Hawley · Spotlight on Corruption, Ian Taylor · CryptoUK, Jackie Killeen · Electoral Commission, Peter Geoghegan · openDemocracy, Vijay Rangarajan · Electoral Commission View ↗
17 Mar 2025 Dan Jarvis MP · Home Office, Nanyamka Brown · Department for Science, Innovation and Technology, Shaun Hipgrave · Home Office, The Baroness Jones of Whitchurch · Department for Science, Innovation and Technology View ↗

Who gave evidence

15 witnesses
WitnessOrganisationSessions
Dan Jarvis MP · Minister for Security Home Office 1
Dr Sam Power University of Bristol 1
Dr Susan Hawley · Executive Director Spotlight on Corruption 1
Duncan Hames · Director of Policy and Programmes Transparency International UK 1
Graeme Biggar CBE · Director General National Crime Agency 1
Ian Taylor · Board Director CryptoUK 1
Jackie Killeen · Director of Electoral Administration and Regulati… Electoral Commission 1
Nanyamka Brown · Deputy Director for Information Threats and Secur… Department for Science, Innovation and Technology 1
Natasha Powell · Chief Compliance Officer UK Kraken Digital Asset Exchange 1
Peter Geoghegan · Investigations Editor openDemocracy 1
Rachael Herbert · Director of the National Economic Crime Centre National Crime Agency 1
Shaun Hipgrave · Director Protect and Prepare, Homeland Security G… Home Office 1
The Baroness Jones of Whitchurch · Parliamentary Under-Secretary of State for the Fu… Department for Science, Innovation and Technology 1
Tom Keatinge · Director RUSI 1
Vijay Rangarajan · Chief Executive Electoral Commission 1

Correspondence

11 letters
DateDirectionTitle
23 Jun 2026 The Electoral Commission's response to the Committee's report on political fina…
16 Mar 2026 To cttee Response from the Secretary of State for Housing, Communities and Local Governm…
16 Mar 2026 From cttee Letter to the Commissioner, Metropolitan Police relating to Political finance, …
24 Feb 2026 To cttee Letter from the Chair to the Secretary of State for Housing, Communities and Lo…
9 Feb 2026 To cttee Letter from the Chair to Vijay Rangarajan, Chief Executive, Electoral Commissio…
21 Oct 2025 Correspondence from Dan Jarvis MBE MP, Security Minister relating to the Defend…
17 Jul 2025 Correspondence to Dan Jarvis MBE MP, Security Minister relating to the Defendin…
1 May 2025 From cttee Letter to Ofcom on Defending Democracy and the Online Safety Act, dated 28 Marc…
1 May 2025 To cttee Letter from Ofcom on Defending Democracy and the Online Safety Act, dated 23 Ap…
1 May 2025 Correspondence to Dan Jarvis MBE MP, Security Minister following oral evidence …
1 May 2025 Correspondence from Dan Jarvis MBE MP, Security Minister following oral evidenc…