Ministers target foreign political mega-donors with tougher residency rules

Ministers are moving to tighten residency requirements for political donors following intense scrutiny over two extraordinary contributions totalling £72m made to Reform UK. The proposed legislation aims to ensure that individuals donating substantial sums to British political parties maintain a genuine, ongoing connection to the country. Under current regulations, while foreign donations remain illegal, British voters residing overseas face no upper limit on their contributions to political campaigns.

The regulatory push follows donations from two British crypto-billionaires, Ben Delo and Christopher Harborne, each of whom gave £36m to Reform UK over a two-day period. The figures represent the largest political contributions in British history. Reform UK leader Nigel Farage maintained that the funds were fully compliant with existing law, though he acknowledged uncertainty over whether such sums would remain permissible under the proposed changes.

The legislation, currently undergoing scrutiny in the House of Lords as part of the Representation of the People Bill, proposes a £100,000 cap on donations from overseas voters, backdated to March. The measures also include a requirement that individuals returning to live in the UK must complete a minimum residency period of 12 months before the restriction is lifted. Addressing peers in Parliament, Communities Minister Baroness Taylor of Stevenage confirmed that ministers intend to align donation eligibility with wider government residency criteria.

While Business Secretary Jonathan Reynolds insisted the policy was not designed to target any single political organisation, critics across the political spectrum have voiced concern. Liberal Democrat Cabinet Office spokeswoman Lisa Smart urged ministers to implement a universal donation cap to prevent vast wealth from distorting British elections. Conversely, Farage warned that attempting to declare legitimate donations illegal retrospectively would invite retaliation against trade union funding, threatening a collapse of the current political financing system.