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Government plans tougher residency rules for political donors

The government is planning to tighten residency rules for political donors, including a proposed £100,000 cap for British voters living overseas.

  • The government plans to introduce a £100,000 cap on donations from British voters living overseas, backdated to 25 March.
  • A minimum residency period of at least 12 months in the UK would apply for those who move back.
  • The proposals follow £72m in donations to Reform UK from two British crypto-billionaires who have recently lived abroad.

The government is planning to tighten residency rules for political donors to ensure that those giving significant amounts of money reside in the UK. This announcement follows a row over two donations totalling £72m to Reform UK from two British crypto-billionaires who have both recently lived abroad.

The proposed changes include a £100,000 cap on donations from British voters living overseas, backdated to 25 March. The government also intends to introduce a minimum residency period of at least 12 months for those who move back to the UK, during which the cap would still apply.

MPs have supported the government's proposals by approving amendments to the Representation of the People Bill, which is currently being scrutinised in the House of Lords. Communities Minister Baroness Taylor of Stevenage stated that the government is considering strengthening residency requirements, including aligning the length of time spent in the UK with broader government policy.

Reform leader Nigel Farage said the donations from Ben Delo and Christopher Harborne are "100% compliant with the law today" but was unable to confirm if they would be permissible under the proposed rule changes. Business Secretary Jonathan Reynolds stated that policy on donations is "never about one political party or one particular set of issues", emphasising the need for those influencing British politics to have a stake in Britain.

Why this matters: The proposed changes could alter how political parties receive funding, particularly from British citizens residing overseas.

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