Earlier this month the Electoral Commission heads appeared before a House of Commons select committee with stark warnings about the dangers of failing to address the problems with political finance. Commenting on the existing rules EC Chair John Pullinger said that the system has “a series of weaknesses that do need to be addressed now, if we are not to face some even more damaging consequences for public trust in the system.”
It’s time to tackle big money in politics
At the Electoral Reform Society, we have long argued that big money is a problem for politics and the current political finance rules are in desperate need of updating.
We agree with the Electoral Commission’s call for reform, particularly in three key areas:
- Preventing foreign profits from influencing UK politics – companies shouldn’t be able to donate money not made in the UK.
- Closing donation loopholes – increasing transparency, especially around donations from unincorporated associations
- Introducing ‘know your donor’ checks – so parties properly screen who’s funding them.
But it shouldn’t stop there, it’s important that we prevent impermissible donations from overseas and guard against foreign influence, but we also need to address the impact of legal but potentially damaging, large scale donations.
A handful of donors are holding too much power
Party funding remains dominated by the big spenders – in the two decades between 2001 and 2021, a fifth of all major political came from just 10 individuals. That’s not healthy for our democracy – so few voices shouldn’t carry that much power.
That is why it is so encouraging to see this issue raised in parliament last week with a new Private Member’s Bill tabled on political donations. This bill, put forward by the MP for Stratford-Upon-Avon, Manuela Perteghella, seeks to place a cap on political donations. Introducing the bill they said, “Introducing a cap on political donations is not about limiting participation; it is about making sure that every vote, every voice and every citizen matters equally in our political system.”
We couldn’t agree more. A donations cap is a crucial tool in ensuring our politics cannot be bought by the highest bidder.
Voters want action
Our research shows that voters are deeply concerned about the impact of money in politics. In fact, big money is the top electoral integrity concern among the public. And it’s easy to see why – Electoral Commissions data reveals that confidence in financial transparency has been in long-term, steady decline. Last year, only 15% of people agreed that political spending and funding is transparent.
When people believe that money can buy influence, it damages trust in our democratic institutions. And right now, that trust is already running low.
It’s time to fix the system. We need bold reforms to political finance – because democracy should work for everyone, not just the wealthiest few.
Do you want to ensure that it’s ordinary voters, not big donors, that are calling the shots?
Add your name to make your voice heard →