- £100,000 annual cap on donations from overseas electors introduced
- Complete ban on cryptocurrency donations with immediate effect
- Measures applied retrospectively from today under new amendments
- 30-day window for political entities to return unlawful donations
- Reforms follow Rycroft Review into foreign financial interference
New Rules to Protect UK Democracy
Landmark changes aimed at protecting UK democracy from foreign financial influence have been introduced, including a cap on donations from overseas electors and a ban on cryptocurrency donations. The measures are designed to safeguard democratic processes from interference and ensure transparency in political funding.
Under the new rules, British citizens living abroad who remain on the UK electoral register will face an annual cap of £100,000 on political donations and regulated financial transactions such as loans.
Immediate Ban on Crypto Donations: The government has also implemented a complete and immediate ban on cryptocurrency donations. This measure is intended to prevent the use of untraceable financial channels for influencing UK politics. The ban will remain in place until Parliament and the Electoral Commission determine that sufficient regulatory frameworks are established to ensure transparency and accountability in crypto-based donations. New statements from UK Prime Minister Keir Starmer on Wednesday have confirmed that they will pursue the temporary ban.
Retrospective Implementation and Compliance
Both the donation cap and the crypto ban will take effect immediately and will be applied retrospectively from today. The government will amend the Representation of the People Bill to formalize these changes.
Political parties, candidates, MPs, and other regulated entities will have a 30-day period to return any unlawful donations received during the interim. After this period, enforcement action may be taken.
Based on Rycroft Review Findings: The reforms follow the publication of the independent Rycroft Review, led by former Permanent Secretary Philip Rycroft. The review was commissioned in December 2025 by Secretary of State Steve Reed to examine foreign financial interference in UK political systems. The government has accepted key recommendations from the review, including the introduction of a donation cap for overseas electors and a moratorium on cryptocurrency donations.
Government Response and Broader Measures
Steve Reed stated that the government is committed to protecting democratic integrity and addressing threats from foreign interference and financial influence. Security Minister Dan Jarvis emphasized that national security remains a priority and highlighted ongoing efforts under the Counter Political Interference and Espionage Action Plan.
Additional reforms under the Representation of the People Bill include stricter requirements for company donations, enhanced powers for the Electoral Commission, tighter rules for unincorporated associations, and stronger “Know Your Donor” checks for political parties.
Addressing Risks in Political Funding
The Rycroft Review identified risks associated with overseas donations, noting challenges in tracing funds and investigating potential wrongdoing. The £100,000 cap is intended to reduce the risk of foreign money entering UK politics through this route. The review also highlighted the difficulty in identifying the true ownership of cryptocurrency, which increases the risk of anonymous or foreign contributions. The ban aims to eliminate this vulnerability until proper safeguards are in place.
Next Steps: The government will continue to review additional recommendations from the Rycroft Review and respond in full in due course. The measures introduced today are expected to be passed into law during the current Parliament, ahead of the next UK general election.
