Question to the Ministry of Housing, Communities and Local Government:

To ask the Secretary of State for Housing, Communities and Local Government, with reference to his press release of 16 December 2025 entitled Urgent review into foreign financial interference in UK politics, what is the evidential basis that political donations can currently be made to shell companies.

Currently, the legal test for permissible donations from companies is that they are registered under the Companies Act 2006, incorporated in the UK, and carrying on business in the UK. This last requirement is vague and easy to satisfy, even without having a genuine and strong connection to the UK. It means a newly created shell company with no trading history can legally donate.

This is an unacceptably low threshold and a vulnerability in our system highlighted by many independent experts, including the Electoral Commission, the Committee on Standards in Public Life and the National Crime Agency.

That is why we have introduced reforms which will require companies (and limited liability partnerships) making donations to demonstrate a genuine and substantive connection to the UK or Ireland, preventing the use of shell companies to channel foreign or illicit money into UK politics. We are introducing new, stringent eligibility criteria for companies and limited liability partnerships wishing to make political donations. Companies/LLPs will have had to make sufficient revenue to cover their donation; be headquartered in the UK; and be majority owned or controlled by UK electors or UK citizens usually resident in the UK. These changes are to ensure that political donations reflect genuine UK-based interests and help prevent foreign interference in our democracy.