Full Breakdown
UK Government Moves to Tighten Rules on Foreign Political Donations Amid Reform UK Funding Surge
By Drooid · · How we work
Proposed Legislative Changes
The government is preparing amendments that would back-date new residency requirements to March, introduce an “enhanced” test requiring donors to prove a continuous UK presence, and cap contributions from UK citizens living abroad at £100,000 for the first year after they return. Ministers say the measures aim to ensure large donors have a genuine stake in the country, not to single out any party.
Background and Funding Context
Reform UK received a record £72 million from two crypto-wealthy backers—Ben Delo, formerly based in Hong Kong, and Christopher Harborne, based in Thailand. The donations consist of twin £36 million gifts that could fall foul of the proposed residency test. Reform UK has begun using the money to double its policy team from ten to twenty staff members and to hire roughly 400 new field agents, while planning a new online channel on YouTube.
Official Statements and Responses
The prime minister’s official spokesman rejected claims that the reforms target Reform UK, stating the government’s intent is to prevent individuals who contribute vast sums from doing so without a real connection to the UK. The Liberal Democrats’ Cabinet Office spokeswoman Lisa Smart MP argued that the proposed residency test would be insufficient and pledged to push for stronger amendments.
Political Reactions
Nigel Farage told the BBC that the two donations are compliant under current law and warned that retroactive declarations would be unlawful. He also suggested Reform UK could retaliate by cutting off union funding to Labour if the donations are blocked. Conservative MP Lee Anderson, in a Telegraph op-ed, warned he would introduce legislation to block union donations to Labour should Reform win the next election and the £72 million be barred.
Potential Impact
If enacted, the residency test and overseas-donor cap could force Reform UK to return or restructure the £72 million inflow, limiting its capacity to expand staff and field operations. Opposition parties argue the changes risk curbing legitimate political participation, while the government maintains they protect democratic integrity.