UK Election Bill Targets Shell Companies in Political Donation Regulations

Transparency International UK has backed parts of the new elections bill that aim to stop foreign political donations being hidden through shell companies. The group said stronger rules on company donations and tighter checks on donor identities are positive steps. New guidance requiring parties to properly verify donors has also been welcomed.

Experts Warn Big Money Problem Still Unresolved

Despite these changes, anti-corruption specialists say the bill does not go far enough. They argue that without limits on large donations, wealthy individuals will continue to hold a strong influence over politics. Campaigners believe this weakens efforts to rebuild public trust in democratic institutions.

Research Shows Growing Reliance on Mega Donors

New analysis from Transparency International UK found that two-thirds of private political donations in 2023 came from just nineteen major donors. The figures highlight how dependent political parties have become on a small group of wealthy supporters.

Record Election Spending Raises Questions

The concerns come after the 2024 general election became the most expensive campaign on record. Political parties spent about ninety-two million pounds, reinforcing fears that financial power plays an outsized role in shaping political competition and messaging.

Calls for Stronger Action From Lawmakers

Duncan Hames, Director of Policy at Transparency International UK, said the legislation marks progress but still falls short of what lawmakers must deliver. He warned that public confidence in politics remains fragile and could decline further unless lawmakers introduce stronger measures. Campaigners are urging MPs to consider donation caps, lower spending limits, and stronger protections to safeguard the independence of the Electoral Commission.

Wider Political Context Fuels Debate

The bill arrives during ongoing scrutiny of political culture, including a criminal investigation into alleged misconduct involving Peter Mandelson. Anti-corruption experts say such cases reflect deeper concerns about the close ties between wealthy figures and political power.

Corruption Index Reflects Growing Concern

Britain recently received its lowest-ever score in Transparency International’s Corruption Perceptions Index. The result shows increasing concern among experts and business leaders about integrity and transparency in public life, adding further pressure on lawmakers to strengthen political funding rules.