Political Parties and Elections Act 2009

Lord Khan of Burnley Excerpts

Thursday 12th June 2025 Lords Chamber

[Lord Pack]

To ask His Majesty’s Government what plans they have to commence the provisions in section 9 of the Political Parties and Elections Act 2009.

[The Parliamentary Under-Secretary of State, Ministry of Housing, Communities and Local Government (Lord Khan of Burnley) (Lab)]

My Lords, the Government committed in their manifesto to protect our democracy by strengthening the rules around donations. We are currently considering a series of policy interventions, such as enhanced checks by recipients of donations and tighter controls on donors, including more restrictions around company donations. This will help enhance the protections of our system against potential risks. We plan to set out further details in our strategy for elections, which we expect to publish this summer.

[Lord Pack (LD)]

My Lords, it is 16 years since Parliament passed the simple but powerful safeguard in Section 9, in response to a financial scandal over the origin of donations. Implementation does not require any time for primary legislation, nor for the Treasury to be asked for any money, but it would make our political finances that bit more transparent, ethical and trustworthy. So, what is the reason for the Minister not to go back to the department this afternoon and simply say to colleagues, “I’ve got a commencement clause. I think we should sort this”?

[Lord Khan of Burnley (Lab)]

My Lords, I know the noble Lord has done a lot of research in this area, and we welcome that research. But, as I said in my previous Answer, we are committed to strengthening the rules around donations, improving our democracy and protecting our democracy from foreign interference. That will all be laid out in the summer and I am sure that, when it is, the noble Lord will be able to have a look, reflect and feed back into the whole process.

[Lord Forsyth of Drumlean (Con)]

My Lords, in considering possible future changes, will the Government take account of political parties such as the Liberal Democrats, who received £2.4 million from a known and convicted fraudster, Michael Brown, and, 20 years on, have still to pay back that money to the people who were denied those resources?

[Lord Khan of Burnley (Lab)]

My Lords, I am sure the noble Lord will understand that I cannot get involved in or discuss any individual donations, but I reassure him that we will ensure that we strengthen the law around political donations.

[Lord Fowler (CB)]

My Lords, I know that, in my day, when I was party chairman—before I became independent—some of the biggest political donors were the trade unions. Does this review include the trade unions and the restrictions that could be placed on them?

[Lord Khan of Burnley (Lab)]

My Lords, to the noble Lord’s question, your Lordships will have to wait until summer, when we will set out our strategy. The Deputy Prime Minister is absolutely keen, in her role as Secretary of State for MHCLG, to ensure that we have strong electoral reforms ready for the next election.

[Lord Foulkes of Cumnock (Lab Co-op)]

My Lords—

[Lord Wallace of Saltaire (LD)]

My Lords, if we are talking about motes and beams in different parties, will the Government now publish the redacted elements of the Intelligence and Security Committee’s Russia report on Russian money flowing into the Conservative Party? While I am on my feet, do the Government intend to simplify in any sense the great mess of electoral law, given that the Law Commission has done a lot of work on this and that electoral registration officers struggle with the various Acts—some of which are still extant, others of which have largely been expunged—in accordance with which they have to conduct their affairs?

[Lord Khan of Burnley (Lab)]

My Lords, I hope the noble Lord can understand that I am not able to comment on any particular donations to parties. It is not for government to interfere with that. But he makes a very interesting point, so I will take a moment to let the House know that, as set out in our manifesto, we are committed to strengthening our democracy, widening participation and upholding the integrity of elections. This includes improving voter registration, extending the electoral franchise to 16 and 17 year-olds, reviewing and addressing voter ID rules, and strengthening rules around donations to political parties. I can let noble Lords across the House know that we will be bringing an election Bill within this Parliament, hopefully in the very near future.

[Lord Hayward (Con)]

My Lords, is the Minister aware that I asked a question on Monday about expenses incurred by Kent County Council in relation to DOGE investigations and the hiring of 12 accountants and systems engineers? Perhaps I might inform him that Kent County Council Conservatives will be writing to the leader of Kent County Council, a Reform councillor, to seek clarification on precisely what form the costs incurred by these people will take and whether they will be declared as donations or, alternatively, as costs on the council tax payer. They will, of course, copy the Minister and the Electoral Commission into any correspondence they both send and receive.

[Lord Khan of Burnley (Lab)]

First, I thank the noble Lord for informing me. I know that he has great depth of experience in this area. Any suspected violations of donation rules fall under the jurisdiction of the Electoral Commission or the police. The Electoral Commission has the authority to investigate breaches and impose civil penalties when necessary. As part of efforts to enhance the regulations surrounding donations, including donations in kind, we are reviewing whether adjustments to the regulator’s role and powers are needed to ensure effective enforcement across the political finance framework.

[Lord Foulkes of Cumnock (Lab Co-op)]

My Lords, if I am going to be pre-empted in a question by anyone, it has to be William Wallace, has it not? But he is absolutely right. Of all the disgraceful donations the Tory party has had, those it got from Russia are the worst. I support the noble Lord, Lord Wallace of Saltaire. I hope that my noble friend the Minister will go back to the department and say that there is a strong view in the House of Lords that the report on donations from Russia should be made public as soon as possible.

[Lord Khan of Burnley (Lab)]

Let me assure my noble friend that the Government remain steadfast in addressing the threat posed by disinformation and foreign interference in our democratic processes. Safeguarding the UK against such threats is and will always be an utmost priority.

[Lord Jamieson (Con)]

My Lords, does the Minister share my concerns that excessive regulation and red tape can lead to unintended adverse consequences, as we have seen with the politically exposed persons regulations? With that in mind, can he tell the House what is the status of the review of the PEP regulations by the Financial Conduct Authority and the Government, following legislation passed by this House?

[Lord Khan of Burnley (Lab)]

My Lords, I share the concern about making sure that our democracy is fit for purpose in the modern world. There is a huge challenge ahead, which is why we will address in the round the whole issue of electoral reform. I will write to the noble Lord on the specific example that he mentioned.

[Lord Brennan of Canton (Lab)]

My Lords, will the Government’s review of donations include looking at the whole issue of people making donations using cryptocurrency, given the potential for abuse and of hiding the true source of those donations?

[Lord Khan of Burnley (Lab)]

My Lords, my noble friend alludes to an important theme in terms of donations. The rules around political donations must be abided by, regardless of the type of donation made, including donations made using cryptocurrency. Those who receive donations must assess the value of the donation when they receive it and, if it is over the reporting threshold, they must report it to the Electoral Commission. Parties and other campaigners must also check that donations come from a permissible source and are prohibited from accepting donations that are not from a permissible or identifiable donor.

[Lord Dubs (Lab)]

My Lords, I wonder whether the Minister could take this into account. I tried to give a donation to the Democratic campaign before the last election, but I was not able to because I do not have an American passport. Can the Minister ensure that we apply the same sort of control as regards money coming into this country?

[Lord Khan of Burnley (Lab)]

My noble friend makes an interesting point. I would not want to talk specifically about that example, but I can reassure him that the concern he shares with the House is a big focus area for making sure that those who donate are eligible to do so, have an interest in the UK and are tied to being part of the UK system, so their eligibility is absolutely legitimate.

[Lord Grocott (Lab)]

Does my noble friend recall that, before the last election, the Conservative Government—for reasons that slightly bewildered me and I think some others—decided to massively extend the franchise to people living abroad who had lived abroad for more than 15 years, many of whom had barely ever lived in the country and for whom it was almost impossible to establish even an address at which they were last resident in the United Kingdom? Now that we have had an election under these rules, can my noble friend at least publish for us the extent to which these newly enfranchised people exercised their vote at the last election, which could of course potentially have had an effect in individual constituencies, how much the system cost and whether there are any plans to revert to the previously very satisfactory situation?

[Lord Khan of Burnley (Lab)]

My Lords, my noble friend makes an interesting point. Just to reassure him, part of our strategy in the summer will reflect on the very issues that he is talking about, and in it we will set out our strategy on wider electoral reform, including donations and the source of donations.