The Electoral Commission calls for immediate changes to UK political donation rules to prevent foreign interference

Keir Starmer is under growing pressure to tighten the UK’s political donation rules after rising concerns over Elon Musk’s potential financial backing of Reform UK. The call comes from the Electoral Commission, which has warned that current laws may not be enough to protect the integrity of the UK’s electoral system from foreign influence.

Vijay Rangarajan, the chief executive of the Electoral Commission, emphasised the urgent need for changes, specifically targeting donations linked to the UK profits of companies owned by foreign nationals. The watchdog has proposed capping donations from foreign-owned companies like Musk’s social media platform X (formerly Twitter), which could significantly limit Musk’s ability to fund UK political campaigns.

Musk’s potential involvement in Reform UK became a significant topic after a meeting this week at Donald Trump’s Mar-a-Lago estate, where Reform UK leader Nigel Farage confirmed that Musk was “seriously considering” donating to the party. According to reports, Musk was initially interested in contributing as much as $100 million (£80 million). However, UK rules governing donations to political parties stipulate that donations above £500 must come from “permissible donors” who are either registered UK voters or companies registered in the UK.

The controversy surrounding Musk’s potential donations has alarmed the Labour government, with sources close to the party suggesting that accepting foreign funding could undermine the spirit of existing donation rules. These concerns underscore the Electoral Commission’s call to strengthen the regulations, which have been criticised for loopholes that allow indirect foreign influence.

Currently, political parties must ensure that all donations over £500 are sourced from eligible donors within the UK. This includes individuals who are registered voters or companies incorporated in the UK. However, the commission has raised alarms that the current rules do not go far enough in preventing foreign interference, especially in light of Musk’s potential involvement.

The commission has recommended three key reforms: limiting donations from companies to the amount of UK-generated profits, imposing mandatory checks on donations to assess potential risks, and ensuring that unincorporated associations adhere to the same standards. Rangarajan has also highlighted the need for increased transparency in the financing of political campaigns to maintain public trust.

Labour’s manifesto previously pledged to protect UK democracy from foreign influence, and officials are reportedly in discussions with the Electoral Commission on how to implement these proposed changes. One source described the situation as an “opportune moment” to close the loopholes, especially given the high-profile nature of Musk’s potential involvement.

Although Musk cannot personally donate to British political parties due to his US citizenship, Farage has stated that Musk is open to the idea of legally donating through his UK-based companies. This would allow Musk to potentially make significant contributions to Reform UK, a party that is aiming to “professionalise” its operations following its performance in the 2024 general election.

As Reform UK seeks to expand, plans for new offices, research operations, and increased political advertising could be financed by large donations, which some critics argue would bring undue foreign influence into the UK political landscape. The Labour Party has indicated that it will be taking swift action to ensure that the current laws are enforced and any potential donations from Musk or similar figures are thoroughly scrutinised.

In response to these concerns, a spokesperson for the Prime Minister stated that the government is reviewing existing donation laws and would outline further details on any changes soon.

SKY NEWS

Nigel Farage, leader of Reform UK, recently met with tech tycoon Elon Musk at Donald Trump’s Mar-a-Lago resort, following rumours that Musk is considering a £78 million donation to the party. Farage was joined by Nick Candy, the billionaire husband of singer Holly Valance, who is set to take up a fundraising role for Reform UK in the new year. The meeting with Musk comes amid reports that the donation could be Musk’s response to Labour leader Keir Starmer’s policies, particularly his stance on business and taxes. Farage confirmed he also met JD Vance, who is expected to become vice president.

The potential donation from Musk, if confirmed, could be funneled through the British arm of his social media company, X (formerly Twitter), to bypass UK laws that prevent foreign donations to political parties. This move would circumvent regulations and allow Musk to directly support Farage’s political endeavors.

Farage’s relationship with Musk and Vance underscores his growing network of influential allies, particularly in the context of Reform UK’s stance on Brexit and economic policies. The meeting comes at a time when Farage’s party seeks to gain momentum, despite criticisms of his past political affiliations and strategies. While the donation remains speculative, it highlights the increasing involvement of international figures in UK politics, especially as Labour faces mounting pressure from the right.

THE TELEGRAPH

Elon Musk expressed deep concerns about the state of the UK, remarking that the country is in “very deep trouble” under Keir Starmer’s leadership. This bleak assessment came during a visit to Mar-a-Lago, where Musk met with Nigel Farage and others, including SoftBank’s Masa Son and Trump allies. Farage highlighted the stark contrast between the optimism surrounding Trump’s upcoming inauguration and the pessimism gripping the UK. Musk’s concerns stem from Labour’s lack of understanding of private sector dynamics, with Farage suggesting that Starmer’s economic policies could lead the UK into a recession. Musk’s visit to Mar-a-Lago also focused on his successful campaign strategies, adding to the overall sense of optimism in the US. Farage’s meeting with Musk, alongside his new treasurer Nick Candy, emphasized Reform UK’s growing international connections as the party seeks to challenge Labour’s policies.