Rycroft Review

Government response The government recognises the risk posed by malign actors who seek to interfere with and undermine our democratic processes. Safeguarding the integrity, transparency and fairness of our electoral system is a fundamental priority. As pledged in our manifesto, we are strengthening the rules around donations to political parties to ensure they are robust and offer the right protections against evolving threats.

The Representation of the People Bill (RoPB) currently before Parliament will introduce a robust package of reforms to protect against foreign interference, improve transparency in political funding, strengthen due diligence requirements on donations and close existing loopholes. Together, these measures will increase public confidence in the integrity of our democratic institutions.

The government accepts recommendations 1 to 5 of the Rycroft Review and, where primary legislation is needed swiftly, will take forward their implementation through the RoPB.

In respect of recommendations relating to overseas donations and emerging financial risks (recommendations 1 and 3), the government has already confirmed its intention to introduce a cap on donations from overseas electors and a moratorium on donations made via cryptoassets.

While many donations from British citizens living abroad are legitimate and lawful, the government recognises the inherent complexity in tracing the true source of political donations made by overseas electors due to the very nature of their overseas residence. The government also recognises the concern raised by Mr Rycroft regarding the democratic fairness of allowing large donations from British citizens living – and therefore having their wealth taxed - abroad. A cap on the amount overseas electors can donate therefore provides an additional, proportionate safeguard against the risk of this route being used to channel illicit funds. An amendment to the RoPB will place an annual cap of £100,000 on the total value of donations an overseas elector may make, and/or regulated transactions (such as loans) that an overseas elector can participate in.

This cap will apply to all political donations from overseas electors made on or after 25 March 2026, so donations made following that date which exceed the cap will need to be returned. Regulated transactions involving an overseas elector as a participant that breach the rules will also become void upon the coming into force of the relevant provisions and any monies owed under them will have to be repaid. The full detail of how this retrospective period will operate has been set out in correspondence to political parties and published on GOV.UK for reference. The retrospective approach here is deemed necessary as there is a clear, time-critical risk of evasion that would otherwise undermine the purpose of this measure if brought in at a later date.

The cap will be accompanied by a “minimum residency” period during which an overseas elector who returns to the UK will remain subject to the £100,000 cap until they have been back in the UK for a full calendar year. This provision will also apply retrospectively from 25 March 2026 removing the opportunity for individuals to seek to circumvent the strengthened regime.

We will also apply the cap and a minimum residency period to other individuals who move to the UK and who were not registered as an overseas elector when outside the UK. We want to ensure that such individuals do not seek to get around these rules by moving to the UK before the rules come into effect. We will therefore apply retrospectively a slightly modified annual donation cap (£100,000 per recipient) for those individuals where they move to the UK and make a donation between the date of publication of this response to the Rycroft Review and the date of commencement of the measures. Once the measures have commenced, all donors will need to make a declaration at the point of donation to confirm their status as an overseas elector or as subject to the minimum residency period and that their aggregate donation remains within the annual cap, supporting effective compliance and enforcement.

The moratorium on political donations made via cryptoassets will apply to all political donations of any value made through cryptoassets on or after 25 March 2026, with a 30-day period following commencement of the provisions for any previously accepted cryptoasset donations to be returned or forfeited.

The anonymity inherent in cryptocurrency transactions creates a clear route for foreign or illicit actors to channel money into our politics, and that is why we agree that a moratorium is necessary until the regulatory environment around cryptoassets is robust enough to protect the integrity of our political finance system from foreign interference.

In response to Recommendation 2, the existing provisions in the RoPB introduce strict new eligibility criteria which companies must meet in order to make political donations. Companies (and limited liability partnerships) making donations will be required to demonstrate a genuine and substantive connection to the UK or Ireland, preventing the use of shell companies to channel foreign or illicit money into UK politics.

The Review highlights loopholes in this proposed system, which the government accepts in full. We will therefore introduce an amendment to the RoPB to replace the revenue test with a post-tax profit test measured over five years. This will enable corporate permissibility to be assessed against profits rather than revenue, closing a key loophole and strengthening the integrity of corporate political finance. Some legitimate companies are not set up with the explicit purpose of making profit, and it would not be fair to automatically exclude them from making political donations where they would otherwise be able to donate. Therefore, we will use a definition of profit which accommodates different types of organisations.

It is imperative we ensure the package of reforms in this area are coherent, robust and enforceable. We are therefore also introducing a requirement for donors making donations over a certain threshold to submit a declaration. This will ensure that both recipients of donations and the Electoral Commission have the information necessary to comply with and enforce the law.

Further, recognising the residual concerns that bad actors could still use cryptoassets to channel impermissible funds into fiat currency and make a political donation, the declaration will require the donor to state whether the funds have been converted from cryptoassets. Where fiat funds have come from cryptoassets, we will oblige recipients to take extra steps to determine that the funds are permissible.

The approach of a declaration for all donors making donations over a certain threshold is necessary to fully and effectively implement the recommendations from the Review, and we will take care to ensure that the declaration process is designed in such a way as to achieve this without creating unnecessary administrative burden for parties and donors. We will consult with the Electoral Commission and political parties over the coming weeks on the detail of this declaration and its practical operation, in order to achieve this.

With regard to recommendation 4, the government accepts the case for strengthening the rules for candidate donations used to fund campaign activity to ensure non-party campaigner and candidate spending are from permissible donors, thereby strengthening protections against foreign financial interference.

Through the RoPB we will introduce permissibility requirements for candidate donations used to fund campaign activity: candidates will be required to provide a declaration to confirm donations used to fund campaign activity prior to an election are from permissible sources, addressing the current gap outside of the regulated period associated with an election and for non-incumbent candidates. In addition, donations received prior to candidacy which exceed £2,230 will need to be declared by candidates, providing a practical means of ensuring transparency and enforceability of the regime.

Mr Rycroft also makes recommendations regarding non-party campaigners and campaigning definitions. We agree that the current rules fall short of protecting against foreign interference in our democracy and political discourse. It is imperative, however, that any action in this area focuses on impermissible and malign activity, and does not unduly limit or burden individuals and campaign groups in exercising their right to civic advocacy and democratic participation. As Mr Rycroft recommends, we therefore commit to consultation and further work to develop proposals to amend the non-party campaigning rules.

In response to recommendation 5, the government agrees that strengthened “know your donor” requirements are essential to mitigating the risks of illegitimate or foreign funding. The new “Know Your Donor” (KYD) scheme being introduced via the RoPB will require recipients of donations over £11,180 to consider the risk of those donations being from illegitimate sources.

As recommended, we will enhance the currently proposed scheme by including ‘location’ as an explicit risk factor in donations checks. We agree with Mr Rycroft that ‘large-value donations’ warrant extra due diligence. The value of a donation is already captured within existing risk assessment factors in our current measure, and we commit to working with the Electoral Commission with regard reinforcing the risk associated with very large donations through guidance.

This approach will therefore support more effective due diligence as recommended by the Rycroft Review, whilst maintaining “Know Your Donor” as a risk-based, enforceable regime designed to achieve a comparable protective effect to the anti-money  laundering standards without duplicating existing regulatory regimes.

Taken together, these reforms build on those already brought forward in the RoPB to deliver a significant strengthening of the UK’s political finance framework. The government will continue to work closely with Parliament, the Electoral Commission and other stakeholders to ensure that these measures are implemented effectively and proportionately, reinforcing confidence in the resilience and integrity of our democratic system.

Government response The government recognises the risk posed by malign actors who seek to interfere with and undermine our democratic processes. Safeguarding the integrity, transparency and fairness of our electoral system is a fundamental priority. As pledged in our manifesto, we are strengthening the rules around donations to political parties to ensure they are robust and offer the right protections against evolving threats.

The Representation of the People Bill (RoPB) currently before Parliament will introduce a robust package of reforms to protect against foreign interference, improve transparency in political funding, strengthen due diligence requirements on donations and close existing loopholes. Together, these measures will increase public confidence in the integrity of our democratic institutions.

The government accepts recommendations 1 to 5 of the Rycroft Review and, where primary legislation is needed swiftly, will take forward their implementation through the RoPB.

In respect of recommendations relating to overseas donations and emerging financial risks (recommendations 1 and 3), the government has already confirmed its intention to introduce a cap on donations from overseas electors and a moratorium on donations made via cryptoassets.

While many donations from British citizens living abroad are legitimate and lawful, the government recognises the inherent complexity in tracing the true source of political donations made by overseas electors due to the very nature of their overseas residence. The government also recognises the concern raised by Mr Rycroft regarding the democratic fairness of allowing large donations from British citizens living – and therefore having their wealth taxed - abroad. A cap on the amount overseas electors can donate therefore provides an additional, proportionate safeguard against the risk of this route being used to channel illicit funds. An amendment to the RoPB will place an annual cap of £100,000 on the total value of donations an overseas elector may make, and/or regulated transactions (such as loans) that an overseas elector can participate in.

This cap will apply to all political donations from overseas electors made on or after 25 March 2026, so donations made following that date which exceed the cap will need to be returned. Regulated transactions involving an overseas elector as a participant that breach the rules will also become void upon the coming into force of the relevant provisions and any monies owed under them will have to be repaid. The full detail of how this retrospective period will operate has been set out in correspondence to political parties and published on GOV.UK for reference. The retrospective approach here is deemed necessary as there is a clear, time-critical risk of evasion that would otherwise undermine the purpose of this measure if brought in at a later date.

The cap will be accompanied by a “minimum residency” period during which an overseas elector who returns to the UK will remain subject to the £100,000 cap until they have been back in the UK for a full calendar year. This provision will also apply retrospectively from 25 March 2026 removing the opportunity for individuals to seek to circumvent the strengthened regime.

We will also apply the cap and a minimum residency period to other individuals who move to the UK and who were not registered as an overseas elector when outside the UK. We want to ensure that such individuals do not seek to get around these rules by moving to the UK before the rules come into effect. We will therefore apply retrospectively a slightly modified annual donation cap (£100,000 per recipient) for those individuals where they move to the UK and make a donation between the date of publication of this response to the Rycroft Review and the date of commencement of the measures. Once the measures have commenced, all donors will need to make a declaration at the point of donation to confirm their status as an overseas elector or as subject to the minimum residency period and that their aggregate donation remains within the annual cap, supporting effective compliance and enforcement.

The moratorium on political donations made via cryptoassets will apply to all political donations of any value made through cryptoassets on or after 25 March 2026, with a 30-day period following commencement of the provisions for any previously accepted cryptoasset donations to be returned or forfeited.

The anonymity inherent in cryptocurrency transactions creates a clear route for foreign or illicit actors to channel money into our politics, and that is why we agree that a moratorium is necessary until the regulatory environment around cryptoassets is robust enough to protect the integrity of our political finance system from foreign interference.

In response to Recommendation 2, the existing provisions in the RoPB introduce strict new eligibility criteria which companies must meet in order to make political donations. Companies (and limited liability partnerships) making donations will be required to demonstrate a genuine and substantive connection to the UK or Ireland, preventing the use of shell companies to channel foreign or illicit money into UK politics.

The Review highlights loopholes in this proposed system, which the government accepts in full. We will therefore introduce an amendment to the RoPB to replace the revenue test with a post-tax profit test measured over five years. This will enable corporate permissibility to be assessed against profits rather than revenue, closing a key loophole and strengthening the integrity of corporate political finance. Some legitimate companies are not set up with the explicit purpose of making profit, and it would not be fair to automatically exclude them from making political donations where they would otherwise be able to donate. Therefore, we will use a definition of profit which accommodates different types of organisations.

It is imperative we ensure the package of reforms in this area are coherent, robust and enforceable. We are therefore also introducing a requirement for donors making donations over a certain threshold to submit a declaration. This will ensure that both recipients of donations and the Electoral Commission have the information necessary to comply with and enforce the law.

Further, recognising the residual concerns that bad actors could still use cryptoassets to channel impermissible funds into fiat currency and make a political donation, the declaration will require the donor to state whether the funds have been converted from cryptoassets. Where fiat funds have come from cryptoassets, we will oblige recipients to take extra steps to determine that the funds are permissible.

The approach of a declaration for all donors making donations over a certain threshold is necessary to fully and effectively implement the recommendations from the Review, and we will take care to ensure that the declaration process is designed in such a way as to achieve this without creating unnecessary administrative burden for parties and donors. We will consult with the Electoral Commission and political parties over the coming weeks on the detail of this declaration and its practical operation, in order to achieve this.

With regard to recommendation 4, the government accepts the case for strengthening the rules for candidate donations used to fund campaign activity to ensure non-party campaigner and candidate spending are from permissible donors, thereby strengthening protections against foreign financial interference.

Through the RoPB we will introduce permissibility requirements for candidate donations used to fund campaign activity: candidates will be required to provide a declaration to confirm donations used to fund campaign activity prior to an election are from permissible sources, addressing the current gap outside of the regulated period associated with an election and for non-incumbent candidates. In addition, donations received prior to candidacy which exceed £2,230 will need to be declared by candidates, providing a practical means of ensuring transparency and enforceability of the regime.

Mr Rycroft also makes recommendations regarding non-party campaigners and campaigning definitions. We agree that the current rules fall short of protecting against foreign interference in our democracy and political discourse. It is imperative, however, that any action in this area focuses on impermissible and malign activity, and does not unduly limit or burden individuals and campaign groups in exercising their right to civic advocacy and democratic participation. As Mr Rycroft recommends, we therefore commit to consultation and further work to develop proposals to amend the non-party campaigning rules.

In response to recommendation 5, the government agrees that strengthened “know your donor” requirements are essential to mitigating the risks of illegitimate or foreign funding. The new “Know Your Donor” (KYD) scheme being introduced via the RoPB will require recipients of donations over £11,180 to consider the risk of those donations being from illegitimate sources.

As recommended, we will enhance the currently proposed scheme by including ‘location’ as an explicit risk factor in donations checks. We agree with Mr Rycroft that ‘large-value donations’ warrant extra due diligence. The value of a donation is already captured within existing risk assessment factors in our current measure, and we commit to working with the Electoral Commission with regard reinforcing the risk associated with very large donations through guidance.

This approach will therefore support more effective due diligence as recommended by the Rycroft Review, whilst maintaining “Know Your Donor” as a risk-based, enforceable regime designed to achieve a comparable protective effect to the anti-money  laundering standards without duplicating existing regulatory regimes.

Taken together, these reforms build on those already brought forward in the RoPB to deliver a significant strengthening of the UK’s political finance framework. The government will continue to work closely with Parliament, the Electoral Commission and other stakeholders to ensure that these measures are implemented effectively and proportionately, reinforcing confidence in the resilience and integrity of our democratic system.

Government response The government recognises the risk posed by malign actors who seek to interfere with and undermine our democratic processes. Safeguarding the integrity, transparency and fairness of our electoral system is a fundamental priority. As pledged in our manifesto, we are strengthening the rules around donations to political parties to ensure they are robust and offer the right protections against evolving threats.

The Representation of the People Bill (RoPB) currently before Parliament will introduce a robust package of reforms to protect against foreign interference, improve transparency in political funding, strengthen due diligence requirements on donations and close existing loopholes. Together, these measures will increase public confidence in the integrity of our democratic institutions.

The government accepts recommendations 1 to 5 of the Rycroft Review and, where primary legislation is needed swiftly, will take forward their implementation through the RoPB.

In respect of recommendations relating to overseas donations and emerging financial risks (recommendations 1 and 3), the government has already confirmed its intention to introduce a cap on donations from overseas electors and a moratorium on donations made via cryptoassets.

While many donations from British citizens living abroad are legitimate and lawful, the government recognises the inherent complexity in tracing the true source of political donations made by overseas electors due to the very nature of their overseas residence. The government also recognises the concern raised by Mr Rycroft regarding the democratic fairness of allowing large donations from British citizens living – and therefore having their wealth taxed - abroad. A cap on the amount overseas electors can donate therefore provides an additional, proportionate safeguard against the risk of this route being used to channel illicit funds. An amendment to the RoPB will place an annual cap of £100,000 on the total value of donations an overseas elector may make, and/or regulated transactions (such as loans) that an overseas elector can participate in.

This cap will apply to all political donations from overseas electors made on or after 25 March 2026, so donations made following that date which exceed the cap will need to be returned. Regulated transactions involving an overseas elector as a participant that breach the rules will also become void upon the coming into force of the relevant provisions and any monies owed under them will have to be repaid. The full detail of how this retrospective period will operate has been set out in correspondence to political parties and published on GOV.UK for reference. The retrospective approach here is deemed necessary as there is a clear, time-critical risk of evasion that would otherwise undermine the purpose of this measure if brought in at a later date.

The cap will be accompanied by a “minimum residency” period during which an overseas elector who returns to the UK will remain subject to the £100,000 cap until they have been back in the UK for a full calendar year. This provision will also apply retrospectively from 25 March 2026 removing the opportunity for individuals to seek to circumvent the strengthened regime.

We will also apply the cap and a minimum residency period to other individuals who move to the UK and who were not registered as an overseas elector when outside the UK. We want to ensure that such individuals do not seek to get around these rules by moving to the UK before the rules come into effect. We will therefore apply retrospectively a slightly modified annual donation cap (£100,000 per recipient) for those individuals where they move to the UK and make a donation between the date of publication of this response to the Rycroft Review and the date of commencement of the measures. Once the measures have commenced, all donors will need to make a declaration at the point of donation to confirm their status as an overseas elector or as subject to the minimum residency period and that their aggregate donation remains within the annual cap, supporting effective compliance and enforcement.

The moratorium on political donations made via cryptoassets will apply to all political donations of any value made through cryptoassets on or after 25 March 2026, with a 30-day period following commencement of the provisions for any previously accepted cryptoasset donations to be returned or forfeited.

The anonymity inherent in cryptocurrency transactions creates a clear route for foreign or illicit actors to channel money into our politics, and that is why we agree that a moratorium is necessary until the regulatory environment around cryptoassets is robust enough to protect the integrity of our political finance system from foreign interference.

In response to Recommendation 2, the existing provisions in the RoPB introduce strict new eligibility criteria which companies must meet in order to make political donations. Companies (and limited liability partnerships) making donations will be required to demonstrate a genuine and substantive connection to the UK or Ireland, preventing the use of shell companies to channel foreign or illicit money into UK politics.

The Review highlights loopholes in this proposed system, which the government accepts in full. We will therefore introduce an amendment to the RoPB to replace the revenue test with a post-tax profit test measured over five years. This will enable corporate permissibility to be assessed against profits rather than revenue, closing a key loophole and strengthening the integrity of corporate political finance. Some legitimate companies are not set up with the explicit purpose of making profit, and it would not be fair to automatically exclude them from making political donations where they would otherwise be able to donate. Therefore, we will use a definition of profit which accommodates different types of organisations.

It is imperative we ensure the package of reforms in this area are coherent, robust and enforceable. We are therefore also introducing a requirement for donors making donations over a certain threshold to submit a declaration. This will ensure that both recipients of donations and the Electoral Commission have the information necessary to comply with and enforce the law.

Further, recognising the residual concerns that bad actors could still use cryptoassets to channel impermissible funds into fiat currency and make a political donation, the declaration will require the donor to state whether the funds have been converted from cryptoassets. Where fiat funds have come from cryptoassets, we will oblige recipients to take extra steps to determine that the funds are permissible.

The approach of a declaration for all donors making donations over a certain threshold is necessary to fully and effectively implement the recommendations from the Review, and we will take care to ensure that the declaration process is designed in such a way as to achieve this without creating unnecessary administrative burden for parties and donors. We will consult with the Electoral Commission and political parties over the coming weeks on the detail of this declaration and its practical operation, in order to achieve this.

With regard to recommendation 4, the government accepts the case for strengthening the rules for candidate donations used to fund campaign activity to ensure non-party campaigner and candidate spending are from permissible donors, thereby strengthening protections against foreign financial interference.

Through the RoPB we will introduce permissibility requirements for candidate donations used to fund campaign activity: candidates will be required to provide a declaration to confirm donations used to fund campaign activity prior to an election are from permissible sources, addressing the current gap outside of the regulated period associated with an election and for non-incumbent candidates. In addition, donations received prior to candidacy which exceed £2,230 will need to be declared by candidates, providing a practical means of ensuring transparency and enforceability of the regime.

Mr Rycroft also makes recommendations regarding non-party campaigners and campaigning definitions. We agree that the current rules fall short of protecting against foreign interference in our democracy and political discourse. It is imperative, however, that any action in this area focuses on impermissible and malign activity, and does not unduly limit or burden individuals and campaign groups in exercising their right to civic advocacy and democratic participation. As Mr Rycroft recommends, we therefore commit to consultation and further work to develop proposals to amend the non-party campaigning rules.

In response to recommendation 5, the government agrees that strengthened “know your donor” requirements are essential to mitigating the risks of illegitimate or foreign funding. The new “Know Your Donor” (KYD) scheme being introduced via the RoPB will require recipients of donations over £11,180 to consider the risk of those donations being from illegitimate sources.

As recommended, we will enhance the currently proposed scheme by including ‘location’ as an explicit risk factor in donations checks. We agree with Mr Rycroft that ‘large-value donations’ warrant extra due diligence. The value of a donation is already captured within existing risk assessment factors in our current measure, and we commit to working with the Electoral Commission with regard reinforcing the risk associated with very large donations through guidance.

This approach will therefore support more effective due diligence as recommended by the Rycroft Review, whilst maintaining “Know Your Donor” as a risk-based, enforceable regime designed to achieve a comparable protective effect to the anti-money  laundering standards without duplicating existing regulatory regimes.

Taken together, these reforms build on those already brought forward in the RoPB to deliver a significant strengthening of the UK’s political finance framework. The government will continue to work closely with Parliament, the Electoral Commission and other stakeholders to ensure that these measures are implemented effectively and proportionately, reinforcing confidence in the resilience and integrity of our democratic system.

Government response The government recognises the risk posed by malign actors who seek to interfere with and undermine our democratic processes. Safeguarding the integrity, transparency and fairness of our electoral system is a fundamental priority. As pledged in our manifesto, we are strengthening the rules around donations to political parties to ensure they are robust and offer the right protections against evolving threats.

The Representation of the People Bill (RoPB) currently before Parliament will introduce a robust package of reforms to protect against foreign interference, improve transparency in political funding, strengthen due diligence requirements on donations and close existing loopholes. Together, these measures will increase public confidence in the integrity of our democratic institutions.

The government accepts recommendations 1 to 5 of the Rycroft Review and, where primary legislation is needed swiftly, will take forward their implementation through the RoPB.

In respect of recommendations relating to overseas donations and emerging financial risks (recommendations 1 and 3), the government has already confirmed its intention to introduce a cap on donations from overseas electors and a moratorium on donations made via cryptoassets.

While many donations from British citizens living abroad are legitimate and lawful, the government recognises the inherent complexity in tracing the true source of political donations made by overseas electors due to the very nature of their overseas residence. The government also recognises the concern raised by Mr Rycroft regarding the democratic fairness of allowing large donations from British citizens living – and therefore having their wealth taxed - abroad. A cap on the amount overseas electors can donate therefore provides an additional, proportionate safeguard against the risk of this route being used to channel illicit funds. An amendment to the RoPB will place an annual cap of £100,000 on the total value of donations an overseas elector may make, and/or regulated transactions (such as loans) that an overseas elector can participate in.

This cap will apply to all political donations from overseas electors made on or after 25 March 2026, so donations made following that date which exceed the cap will need to be returned. Regulated transactions involving an overseas elector as a participant that breach the rules will also become void upon the coming into force of the relevant provisions and any monies owed under them will have to be repaid. The full detail of how this retrospective period will operate has been set out in correspondence to political parties and published on GOV.UK for reference. The retrospective approach here is deemed necessary as there is a clear, time-critical risk of evasion that would otherwise undermine the purpose of this measure if brought in at a later date.

The cap will be accompanied by a “minimum residency” period during which an overseas elector who returns to the UK will remain subject to the £100,000 cap until they have been back in the UK for a full calendar year. This provision will also apply retrospectively from 25 March 2026 removing the opportunity for individuals to seek to circumvent the strengthened regime.

We will also apply the cap and a minimum residency period to other individuals who move to the UK and who were not registered as an overseas elector when outside the UK. We want to ensure that such individuals do not seek to get around these rules by moving to the UK before the rules come into effect. We will therefore apply retrospectively a slightly modified annual donation cap (£100,000 per recipient) for those individuals where they move to the UK and make a donation between the date of publication of this response to the Rycroft Review and the date of commencement of the measures. Once the measures have commenced, all donors will need to make a declaration at the point of donation to confirm their status as an overseas elector or as subject to the minimum residency period and that their aggregate donation remains within the annual cap, supporting effective compliance and enforcement.

The moratorium on political donations made via cryptoassets will apply to all political donations of any value made through cryptoassets on or after 25 March 2026, with a 30-day period following commencement of the provisions for any previously accepted cryptoasset donations to be returned or forfeited.

The anonymity inherent in cryptocurrency transactions creates a clear route for foreign or illicit actors to channel money into our politics, and that is why we agree that a moratorium is necessary until the regulatory environment around cryptoassets is robust enough to protect the integrity of our political finance system from foreign interference.

In response to Recommendation 2, the existing provisions in the RoPB introduce strict new eligibility criteria which companies must meet in order to make political donations. Companies (and limited liability partnerships) making donations will be required to demonstrate a genuine and substantive connection to the UK or Ireland, preventing the use of shell companies to channel foreign or illicit money into UK politics.

The Review highlights loopholes in this proposed system, which the government accepts in full. We will therefore introduce an amendment to the RoPB to replace the revenue test with a post-tax profit test measured over five years. This will enable corporate permissibility to be assessed against profits rather than revenue, closing a key loophole and strengthening the integrity of corporate political finance. Some legitimate companies are not set up with the explicit purpose of making profit, and it would not be fair to automatically exclude them from making political donations where they would otherwise be able to donate. Therefore, we will use a definition of profit which accommodates different types of organisations.

It is imperative we ensure the package of reforms in this area are coherent, robust and enforceable. We are therefore also introducing a requirement for donors making donations over a certain threshold to submit a declaration. This will ensure that both recipients of donations and the Electoral Commission have the information necessary to comply with and enforce the law.

Further, recognising the residual concerns that bad actors could still use cryptoassets to channel impermissible funds into fiat currency and make a political donation, the declaration will require the donor to state whether the funds have been converted from cryptoassets. Where fiat funds have come from cryptoassets, we will oblige recipients to take extra steps to determine that the funds are permissible.

The approach of a declaration for all donors making donations over a certain threshold is necessary to fully and effectively implement the recommendations from the Review, and we will take care to ensure that the declaration process is designed in such a way as to achieve this without creating unnecessary administrative burden for parties and donors. We will consult with the Electoral Commission and political parties over the coming weeks on the detail of this declaration and its practical operation, in order to achieve this.

With regard to recommendation 4, the government accepts the case for strengthening the rules for candidate donations used to fund campaign activity to ensure non-party campaigner and candidate spending are from permissible donors, thereby strengthening protections against foreign financial interference.

Through the RoPB we will introduce permissibility requirements for candidate donations used to fund campaign activity: candidates will be required to provide a declaration to confirm donations used to fund campaign activity prior to an election are from permissible sources, addressing the current gap outside of the regulated period associated with an election and for non-incumbent candidates. In addition, donations received prior to candidacy which exceed £2,230 will need to be declared by candidates, providing a practical means of ensuring transparency and enforceability of the regime.

Mr Rycroft also makes recommendations regarding non-party campaigners and campaigning definitions. We agree that the current rules fall short of protecting against foreign interference in our democracy and political discourse. It is imperative, however, that any action in this area focuses on impermissible and malign activity, and does not unduly limit or burden individuals and campaign groups in exercising their right to civic advocacy and democratic participation. As Mr Rycroft recommends, we therefore commit to consultation and further work to develop proposals to amend the non-party campaigning rules.

In response to recommendation 5, the government agrees that strengthened “know your donor” requirements are essential to mitigating the risks of illegitimate or foreign funding. The new “Know Your Donor” (KYD) scheme being introduced via the RoPB will require recipients of donations over £11,180 to consider the risk of those donations being from illegitimate sources.

As recommended, we will enhance the currently proposed scheme by including ‘location’ as an explicit risk factor in donations checks. We agree with Mr Rycroft that ‘large-value donations’ warrant extra due diligence. The value of a donation is already captured within existing risk assessment factors in our current measure, and we commit to working with the Electoral Commission with regard reinforcing the risk associated with very large donations through guidance.

This approach will therefore support more effective due diligence as recommended by the Rycroft Review, whilst maintaining “Know Your Donor” as a risk-based, enforceable regime designed to achieve a comparable protective effect to the anti-money  laundering standards without duplicating existing regulatory regimes.

Taken together, these reforms build on those already brought forward in the RoPB to deliver a significant strengthening of the UK’s political finance framework. The government will continue to work closely with Parliament, the Electoral Commission and other stakeholders to ensure that these measures are implemented effectively and proportionately, reinforcing confidence in the resilience and integrity of our democratic system.

Government response The government recognises the risk posed by malign actors who seek to interfere with and undermine our democratic processes. Safeguarding the integrity, transparency and fairness of our electoral system is a fundamental priority. As pledged in our manifesto, we are strengthening the rules around donations to political parties to ensure they are robust and offer the right protections against evolving threats.

The Representation of the People Bill (RoPB) currently before Parliament will introduce a robust package of reforms to protect against foreign interference, improve transparency in political funding, strengthen due diligence requirements on donations and close existing loopholes. Together, these measures will increase public confidence in the integrity of our democratic institutions.

The government accepts recommendations 1 to 5 of the Rycroft Review and, where primary legislation is needed swiftly, will take forward their implementation through the RoPB.

In respect of recommendations relating to overseas donations and emerging financial risks (recommendations 1 and 3), the government has already confirmed its intention to introduce a cap on donations from overseas electors and a moratorium on donations made via cryptoassets.

While many donations from British citizens living abroad are legitimate and lawful, the government recognises the inherent complexity in tracing the true source of political donations made by overseas electors due to the very nature of their overseas residence. The government also recognises the concern raised by Mr Rycroft regarding the democratic fairness of allowing large donations from British citizens living – and therefore having their wealth taxed - abroad. A cap on the amount overseas electors can donate therefore provides an additional, proportionate safeguard against the risk of this route being used to channel illicit funds. An amendment to the RoPB will place an annual cap of £100,000 on the total value of donations an overseas elector may make, and/or regulated transactions (such as loans) that an overseas elector can participate in.

This cap will apply to all political donations from overseas electors made on or after 25 March 2026, so donations made following that date which exceed the cap will need to be returned. Regulated transactions involving an overseas elector as a participant that breach the rules will also become void upon the coming into force of the relevant provisions and any monies owed under them will have to be repaid. The full detail of how this retrospective period will operate has been set out in correspondence to political parties and published on GOV.UK for reference. The retrospective approach here is deemed necessary as there is a clear, time-critical risk of evasion that would otherwise undermine the purpose of this measure if brought in at a later date.

The cap will be accompanied by a “minimum residency” period during which an overseas elector who returns to the UK will remain subject to the £100,000 cap until they have been back in the UK for a full calendar year. This provision will also apply retrospectively from 25 March 2026 removing the opportunity for individuals to seek to circumvent the strengthened regime.

We will also apply the cap and a minimum residency period to other individuals who move to the UK and who were not registered as an overseas elector when outside the UK. We want to ensure that such individuals do not seek to get around these rules by moving to the UK before the rules come into effect. We will therefore apply retrospectively a slightly modified annual donation cap (£100,000 per recipient) for those individuals where they move to the UK and make a donation between the date of publication of this response to the Rycroft Review and the date of commencement of the measures. Once the measures have commenced, all donors will need to make a declaration at the point of donation to confirm their status as an overseas elector or as subject to the minimum residency period and that their aggregate donation remains within the annual cap, supporting effective compliance and enforcement.

The moratorium on political donations made via cryptoassets will apply to all political donations of any value made through cryptoassets on or after 25 March 2026, with a 30-day period following commencement of the provisions for any previously accepted cryptoasset donations to be returned or forfeited.

The anonymity inherent in cryptocurrency transactions creates a clear route for foreign or illicit actors to channel money into our politics, and that is why we agree that a moratorium is necessary until the regulatory environment around cryptoassets is robust enough to protect the integrity of our political finance system from foreign interference.

In response to Recommendation 2, the existing provisions in the RoPB introduce strict new eligibility criteria which companies must meet in order to make political donations. Companies (and limited liability partnerships) making donations will be required to demonstrate a genuine and substantive connection to the UK or Ireland, preventing the use of shell companies to channel foreign or illicit money into UK politics.

The Review highlights loopholes in this proposed system, which the government accepts in full. We will therefore introduce an amendment to the RoPB to replace the revenue test with a post-tax profit test measured over five years. This will enable corporate permissibility to be assessed against profits rather than revenue, closing a key loophole and strengthening the integrity of corporate political finance. Some legitimate companies are not set up with the explicit purpose of making profit, and it would not be fair to automatically exclude them from making political donations where they would otherwise be able to donate. Therefore, we will use a definition of profit which accommodates different types of organisations.

It is imperative we ensure the package of reforms in this area are coherent, robust and enforceable. We are therefore also introducing a requirement for donors making donations over a certain threshold to submit a declaration. This will ensure that both recipients of donations and the Electoral Commission have the information necessary to comply with and enforce the law.

Further, recognising the residual concerns that bad actors could still use cryptoassets to channel impermissible funds into fiat currency and make a political donation, the declaration will require the donor to state whether the funds have been converted from cryptoassets. Where fiat funds have come from cryptoassets, we will oblige recipients to take extra steps to determine that the funds are permissible.

The approach of a declaration for all donors making donations over a certain threshold is necessary to fully and effectively implement the recommendations from the Review, and we will take care to ensure that the declaration process is designed in such a way as to achieve this without creating unnecessary administrative burden for parties and donors. We will consult with the Electoral Commission and political parties over the coming weeks on the detail of this declaration and its practical operation, in order to achieve this.

With regard to recommendation 4, the government accepts the case for strengthening the rules for candidate donations used to fund campaign activity to ensure non-party campaigner and candidate spending are from permissible donors, thereby strengthening protections against foreign financial interference.

Through the RoPB we will introduce permissibility requirements for candidate donations used to fund campaign activity: candidates will be required to provide a declaration to confirm donations used to fund campaign activity prior to an election are from permissible sources, addressing the current gap outside of the regulated period associated with an election and for non-incumbent candidates. In addition, donations received prior to candidacy which exceed £2,230 will need to be declared by candidates, providing a practical means of ensuring transparency and enforceability of the regime.

Mr Rycroft also makes recommendations regarding non-party campaigners and campaigning definitions. We agree that the current rules fall short of protecting against foreign interference in our democracy and political discourse. It is imperative, however, that any action in this area focuses on impermissible and malign activity, and does not unduly limit or burden individuals and campaign groups in exercising their right to civic advocacy and democratic participation. As Mr Rycroft recommends, we therefore commit to consultation and further work to develop proposals to amend the non-party campaigning rules.

In response to recommendation 5, the government agrees that strengthened “know your donor” requirements are essential to mitigating the risks of illegitimate or foreign funding. The new “Know Your Donor” (KYD) scheme being introduced via the RoPB will require recipients of donations over £11,180 to consider the risk of those donations being from illegitimate sources.

As recommended, we will enhance the currently proposed scheme by including ‘location’ as an explicit risk factor in donations checks. We agree with Mr Rycroft that ‘large-value donations’ warrant extra due diligence. The value of a donation is already captured within existing risk assessment factors in our current measure, and we commit to working with the Electoral Commission with regard reinforcing the risk associated with very large donations through guidance.

This approach will therefore support more effective due diligence as recommended by the Rycroft Review, whilst maintaining “Know Your Donor” as a risk-based, enforceable regime designed to achieve a comparable protective effect to the anti-money  laundering standards without duplicating existing regulatory regimes.

Taken together, these reforms build on those already brought forward in the RoPB to deliver a significant strengthening of the UK’s political finance framework. The government will continue to work closely with Parliament, the Electoral Commission and other stakeholders to ensure that these measures are implemented effectively and proportionately, reinforcing confidence in the resilience and integrity of our democratic system.

Government response Robust regulation and enforcement of political finance rules is fundamental to maintaining public confidence in the UK’s democratic system and safeguarding it against risks, including the threat of foreign interference and undue influence.

Transparency in how political parties and campaigners report their finances is a critical component of that system. The government agrees with the Review that greater standardisation of reporting formats would support improved scrutiny, enhance comparability of data and strengthen accountability across the political finance regime.

The government therefore accepts recommendation 7 of the Review and will legislate through the RoPB to provide the Electoral Commission with a clear and consistent statutory basis to prescribe standardised reporting formats for political finance returns across the political finance regime. In doing so, we will amend the Political Parties, Elections and Referendums Act 2000 (PPERA) to align the relevant provisions across party campaign spending, third-party campaigning and referendum expenditure, aligning the language in statute and the policy rationale across the various areas encompassed by political finance. These changes will ensure that the Commission can require the use of prescribed forms where appropriate, while retaining the discretion to allow flexibility where a mandatory approach would not be proportionate. This approach balances the need for consistency and transparency with the practical realities faced by campaigners.

Providing a more explicit statutory footing for standardised reporting will reduce variability in how financial information is presented, making it easier for regulators, enforcement bodies and the wider public to interpret and compare data. It will also support more effective oversight by the Commission and help ensure that potential risks such as complex spending arrangements can be more readily identified and scrutinised.

Alongside these legislative changes, the government agrees that the categories used to support campaign spending should be updated to reflect modern campaigning practices, particularly in the context of increased digital activity and evolving methods of political engagement. We will therefore work closely with the Commission to review and modernise these categories using existing powers to introduce secondary legislation where needed following consultation. This will ensure that reporting requirements remain relevant and capable of covering the full range of campaign expenditure in a way that supports transparency and demonstrates trust.

Taken together, these reforms will strengthen the integrity and accessibility of political finance reporting, ensuring the regulatory framework keeps pace with changes in practice while remaining proportionate and deliverable. The government will continue to work in partnership with the Commission and other stakeholders where appropriate to ensure that implementation is effective and that benefits are realised across the system.

Government response The government agrees on the critical importance of ensuring that political parties have access to timely, authoritative information on the threat landscape, including risks relating to foreign financial interference. Strengthening awareness across the democratic system is a central part of protecting the integrity of our elections and political processes. Ensuring that those operating within that system are equipped to identify, manage and report potential threats is therefore a priority.

Providing clear guidance on how to recognise, report and respond to such threats is a key strand of the government’s Counter Political Interference and Espionage Action Plan, announced by the Security Minister in November 2025. The work is designed to improve situational awareness across democratic institutions, enhance protective security measures and ensure that channels for escalation and response are well understood and effective. It reflects a broader approach to safeguarding democratic participation from hostile state activity.

Indeed, significant steps have already been taken to strengthen information sharing and engagement across the political system. In October 2025, the National Protective Security Authority (NPSA) issued tailored guidance for all individuals working in UK democratic institutions on identifying and mitigating the risks of foreign interference and espionage. NPSA has also committed to deepening its engagement with senior officials within political parties, including through the provision of annual threat briefings.

This activity is complimented by direct engagement from the security and intelligence services. In November 2025, MI5 issued a security alert to MPs, Peers and Parliamentary staff highlighting attempts by foreign states to target individuals with access to sensitive information about the British state. These interventions demonstrate an increasingly proactive approach to threat communication, ensuring those at potential risk are both informed and able to take protective action.

Building on this, in February 2026, the Electoral Commission convened a cross-sector security briefing for political parties, bringing together representatives from across the national security community, including the Security Minister, the MI5 Director General, and the Chief Executive of the National Cyber Security Centre. This marked a significant step in strengthening coordination and ensuring that political parties receive a coherent and consistent picture of the threat environment which draws upon the latest intelligence information.

The government agrees that the Electoral Commission has an important convening role to play in supporting this work, particularly in ensuring that information is shared in such a way that is accessible, consistent and reaches everyone who needs it. We will continue to work closely with the Electoral Commission and support them in this regard, working collaboratively to develop a forum of parties which will receive annual security briefings. Looking ahead, the government will build on these arrangements to ensure that information sharing is as structured and comprehensive as possible. This will include continuing to develop mechanisms for routine engagement with political parties, and improving the clarity and useability of guidance and threat briefings. We will also continue to explore whether further enhancements are needed to ensure that information flows are coherent.

Through these measures, the government will ensure that political parties are better equipped with the knowledge, tools and support they need to understand and respond to threats of foreign interference, thereby strengthening the resilience and integrity of the UK’s democratic processes.

Government response Robust regulation and enforcement of political finance rules is crucial for ensuring their integrity and combatting the threat of foreign interference. As the regulator, the role of the Electoral Commission is invaluable in upholding trust in our democracy.

The government is already taking action, through the RoPB, to strengthen the role and powers of the Electoral Commission in order to maximise impact of reforms being made to the political finance rules. We therefore welcome recommendations 9 and 10 on the Commission’s information sharing and investigatory powers and accept them both in full in order to ensure the Commission is equipped to effectively regulate political finance.

In response to recommendation 9, and building on provisions already set out in the RoPB which enable the Commission to share information with specified regulators and enforcement bodies, we will establish a broad, reciprocal statutory gateway for information sharing. This will address the asymmetry identified in the Review of the current information sharing provisions. We will amend the RoPB to enable the Electoral Commission to share information with, and receive information from, relevant public authorities where the disclosure of information supports the discharge of its functions.

With regard to recommendation 10, we will extend the Commission’s powers to require disclosure of information outside of a formal investigation. By amending the RoPB to expand this power beyond specified regulated entities to any person or organisation, the Commission will be able to more proactively monitor compliance, support timely regulation during election periods and take a more proportionate and effective approach to enforcement. It will also allow issues to be resolved as appropriate without the need to launch a full investigation and enable the Commission to establish more quickly whether there are grounds to suspect an offence requiring further action.

Taken together, these reforms will ensure the Electoral Commission remains well-equipped to discharge its functions effectively and to uphold the integrity of the political finance framework.

Government response Robust regulation and enforcement of political finance rules is crucial for ensuring their integrity and combatting the threat of foreign interference. As the regulator, the role of the Electoral Commission is invaluable in upholding trust in our democracy.

The government is already taking action, through the RoPB, to strengthen the role and powers of the Electoral Commission in order to maximise impact of reforms being made to the political finance rules. We therefore welcome recommendations 9 and 10 on the Commission’s information sharing and investigatory powers and accept them both in full in order to ensure the Commission is equipped to effectively regulate political finance.

In response to recommendation 9, and building on provisions already set out in the RoPB which enable the Commission to share information with specified regulators and enforcement bodies, we will establish a broad, reciprocal statutory gateway for information sharing. This will address the asymmetry identified in the Review of the current information sharing provisions. We will amend the RoPB to enable the Electoral Commission to share information with, and receive information from, relevant public authorities where the disclosure of information supports the discharge of its functions.

With regard to recommendation 10, we will extend the Commission’s powers to require disclosure of information outside of a formal investigation. By amending the RoPB to expand this power beyond specified regulated entities to any person or organisation, the Commission will be able to more proactively monitor compliance, support timely regulation during election periods and take a more proportionate and effective approach to enforcement. It will also allow issues to be resolved as appropriate without the need to launch a full investigation and enable the Commission to establish more quickly whether there are grounds to suspect an offence requiring further action.

Taken together, these reforms will ensure the Electoral Commission remains well-equipped to discharge its functions effectively and to uphold the integrity of the political finance framework.

Government response The government recognises the Review’s emphasis on the need for stronger coordination, accountability and resourcing across government to address the growing challenge posed by hostile state activity to the UK’s democratic processes. We agree that this is a significant and evolving threat, and that the government’s response must reflect the scale and the complexity of the challenge. This is why we will take forward work to strengthen our response to foreign interference in the online environment and the senior leadership which underpins it.

We welcome recommendation 13 and the need to prioritise action to address hostile state activity in the online information environment, the government agrees such activity poses a significant and evolving risk to the integrity of our democratic processes.

Work is already underway across government to strengthen the coherence and effectiveness of its collective approach to tackling online information threats as a vector for political interference. This includes enhancing our capability to identify, assess and respond to existing and emerging threats, and ensuring that activity is better coordinated across departments and the wider community.

Our approach to state-directed online political interference must also be considered within the context of the government’s wider response to political interference and hostile state threats. The National Security Act 2023 and the Counter Political Interference and Espionage Plan provide a strengthened framework to counter malign foreign influence, reflecting that hostile actors frequently operate across numerous vectors to achieve their aims. State actors such as Russia, for example, routinely engage in information threats, cyber, and wider offline interference targeting UK politics to advance their goals.

In this context, the government’s policy, governance, capabilities and resourcing need to correspond with the full range of hybrid threats. We will therefore take forward work to ensure that our response to online information threats is fully integrated within this broader national security framework. Through these measures, the government will continue to strengthen its ability to detect, deter and respond to foreign online political interference.

More broadly, the government agrees that the escalating threat to our democracy necessitates a coherent, well-coordinated response and clear accountability at the official level, as set out in recommendation 17. Accordingly, the Cabinet Secretary has accepted this recommendation and appointed the Permanent Secretary of the Home Office to this critical role.

Reporting directly to the Cabinet Secretary, the Permanent Secretary will set the strategic direction for the Defending Democracy Taskforce, coordinate cross-government delivery priorities, and hold departments accountable for meeting these critical commitments.

Taken together, these measures strengthen both the government’s capability to address foreign interference in the online environment and the leadership structures needed to coordinate that response effectively. In so doing, the UK will be better equipped to detect, deter and respond to hostile activity, and to safeguard the integrity and resilience of our democratic processes.