Limit foreign political donations, says UK government’s ethical adviser

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Sir Keir Starmer’s ethics adviser has called on the government to “protect the integrity of elections” by limiting corporate donations to profits made in the UK, following concerns that Elon Musk could disrupt British politics with a major donation to UK reform.

Doug Chalmers, chairman of the government’s Committee for Standards in Public Life, told the Financial Times that the law should also be changed so that political donations made by companies do not exceed their net after-tax profits in the two years before the donation.

“The fundamental principle at stake here is that only those who are entitled to vote and do business in the UK should be able to fund our political parties and thus influence election outcomes in the UK,” Chalmers said. “It is an important area that needs to be addressed to protect the integrity of elections in the UK.”

Chalmers was speaking after UK reform leader Nigel Farage said he had met Elon Musk and that the American tech billionaire… He was thinking of making a large donation To the Populist Party.

The revelations sparked widespread concern around Westminster that Musk’s financial interference could have a significant and lasting impact on British politics, giving the UK reform establishment the resources to turn itself into an institution. A reliable means of power.

He also drew attention to A Long term vulnerability In electoral law, this means that foreigners are able to donate to UK political parties through UK companies they own although they are prohibited from donating directly.

The Electoral Commission, the UK’s election watchdog, said on Wednesday it was in discussions with the government about changing the law to ensure that only profits made in the UK can be donated to political parties.

“The system needs to be strengthened,” said Vijay Rangarajan, CEO of the Election Commission. . . To protect the electoral system from foreign interference.”

But the proposals put forward by Chalmers and Rangarajan are unlikely to do much to limit donations to Musk, whose companies have made profits of almost £90 million in the UK over the past two years.

According to their latest accounts, Twitter UK, the UK social media subsidiary of social media company And 2023.

Tesla Motors Ltd, the UK subsidiary of Musk’s electric car company, in which he is the largest shareholder with a 13 per cent stake, made pre-tax profits of £74 million during 2022 and 2023.

Musk’s artificial intelligence company xAI was also founded in the UK last week, giving him a new avenue through which he can donate to the reform foundation. No accounts have been published yet.

The Committee on Standards in Public Life has called since 1998 for political donations by companies to be limited to the profits they make in the UK.

Chalmers said he was “encouraged that the government has publicly said it is looking into this area.”

Labor pledged in its general election manifesto that it would “protect democracy by strengthening rules on donations to political parties”, highlighting concerns about foreign interference.

Government officials told the Financial Times they were looking to change the law to limit corporate donations to profits they make in the UK, but said no legislation would be introduced next year.

Many states have stricter laws to limit individuals who exercise too much influence in elections. In France, companies are not allowed to donate to parties or candidates, while individuals are allowed to donate a maximum of 7,500 euros per year.

In Finland, no single donor can provide more than 30,000 euros annually, according to Transparency International.