Recommendation 23

HM Government · verbatim extract Rejected

The Government recognises the importance of ensuring that those responsible for deterring, investigating and prosecuting offences related to impermissible foreign money are appropriately resourced and supported, and that there is clear accountability for the effectiveness of these efforts. We agree with the Committee’s underlying objective of maintaining confidence that the enforcement system is capable of responding to evolving threats, and we note the intent behind proposals for more structured reporting to Parliament. We also recognise the Committee’s forward-looking reference to the establishment of a Political Finance Enforcement Unit and the benefits that a more coordinated and visible enforcement capability could bring to this area. However, the Government does not consider that a formalised requirement for annual resourcing updates to this Committee is the most appropriate mechanism to deliver this objective. Wider policing reforms—most notably the establishment of a new National Police Service (NPS), which will in due course incorporate Counter Terrorism Policing functions—present a significant opportunity to strengthen and rationalise the national approach to complex threats, including foreign interference in UK democratic processes. This reform programme will support a more coherent and strategic approach to capability, resourcing and operational coordination across relevant agencies, enabling more consistent oversight and the development of specialist expertise. Within this context, we consider that resourcing and capability questions should be addressed as part of broader, system-wide reviews of enforcement structures rather than through separate, bespoke reporting arrangements. I would like to thank the JCNSS for their valuable and diligent work in this area. The Government is committed to strengthening our democracy, including our political finance regime against the broad range of threats we face, including those from political finance and foreign influence. The Government’s response to this Report and the Rycroft Review affirms these commitments and demonstrates our commitment to ensure our democracy and the systems that underpin it are free, fair and secure. I look forward to continuing to work with the Committee as we move to implement these essential reforms. RT HON STEVE REED OBE MP Secretary of State for Housing, Communities and Local Government The Electoral Commission is the independent body that makes sure elections in the UK are fair, open, and well run. We also regulate the money that political parties and campaigners spend and receive. 1. The Electoral Commission welcomes the Committee’s report and its focus on strengthening safeguards against foreign financial influence and improving transparency across the political finance system. 2. Voters need confidence that the UK’s political finance system is transparent and that strong rules behind our politics are enforced. The Joint Committee on the National Security Strategy’s (JCNSS) report on political finance and foreign influence rightly identifies how efforts to circumvent political finance rules can undermine public trust in the system. 3. There are a number of links between this report, the independent review into countering foreign financial influence and interference in UK politics (the Rycroft Review) and the Government’s announcements following the publication of the Rycroft Review. We will provide a full response to the Rycroft Review in the summer. 4. This response outlines our position on the recommendations made by the Committee. We particularly welcome the recommendations in relation to measures in the UK Government’s Representation of the People Bill (the Bill): to strengthen rules on company donations, improve the functioning of the ‘know your donor’ regime and to extend the Commission’s information gathering powers. Recommendation : The Government should establish a centralised Political Finance Enforcement Unit. This should be a joint unit, which could be housed in the National Crime Agency. It should hold the overall national lead and accountability for proactive assessments and criminal investigations into political finance. It should involve secondees from relevant specialisms (Counter Terrorism Policing, MI5 and the Electoral Commission) with temporary involvement from seconded regional police representatives for specific cases. 5. We agree that political finance rules must be enforced effectively. Close coordination with relevant agencies is critical to this. We currently have close and productive working relationships with the police and relevant agencies, such as the National Crime Agency (NCA) to support our work. We work particularly closely with the National Police Chiefs Council and provide training and advice to police officers in the single point of contact (SPOC) role about preventing and detecting election-related crimes. 6. The Commission strongly supports further strengthened coordination and great