Reform UK’s record £۷۲m in donations from two crypto billionaires could be caught in a new bill which will apply retrospectively, a cabinet minister has suggested.
Labour MPs have voiced anger on internal WhatsApp groups that the government did not act last week to restrict domestic donations in the elections bill after two donors – Christopher Harborne and Ben Delo – gave Reform UK a total of £۷۲m over the weekend.
Several MPs said they believed the government should have adopted an amendment by the Labour MP Stella Creasy to the representation of the people bill which proposed an annual cap of £۱۰۰,۰۰۰ on most domestic donations. Although it had support of ۶۰ MPs from various parties, it was not put to a vote after the government said it would ask a taskforce to look at the proposal.
The communities secretary, Angela Rayner, said the bill, which will go to the House of Lords this week, would have restrictions on foreign donors and that the government was examining rules on domestic donations.
The two donors who gave Reform UK £۳۶m each have both previously been based outside the UK. Harborne is a citizen of the UK and Thailand, while Delo recently moved back to Britain from Hong Kong. It is unclear when Delo returned to live in the UK and whether Harborne remains a resident of Thailand.
As part of the new legislation, donations to political parties from Britons living abroad or those who have returned to the country within the past ۱۲ months will be capped at £۱۰۰,۰۰۰ a year, with the rules backdated to March. Reform UK has said it is confident the donations have been made within the law.
“All donations to Reform UK comply strictly with Electoral Commission rules and UK law,” a spokesperson said. “Both men are British citizens who are fully entitled to support political change in their own country, despite the establishment’s desperate attempts to silence opposition.”
The bill going through parliament caps overseas donations at £۱۰۰,۰۰۰, which also applies to donors who have recently moved back to Britain until they have been resident for a whole calendar year. The restrictions came after recommendations in a review of overseas donations by the former permanent secretary Philip Rycroft.
The government has said the rules will apply from the date the Rycroft review was published – ۲۵ March – if donors were registered as overseas electors, or if they were not registered then it would date back to ۶ July which is the date the government announced its response to the review.
Rayner told the BBC’s Laura Kuenssberg programme that the government had been clear in its intentions since the review was published and had always said the changes would be retrospective.
“We’re really clear on that. And that legislation is going through parliament at the moment. And we’ve also written to the Electoral Commission, which is an independent body, to see what further measures we need to take to protect our democracy,” she said.
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Rayner – the minister responsible for the bill – said it was not targeted at individual donors or parties. “I’m not going to get into individual donors and their money … People can see the ۱۷ recommendations which the government has accepted. The legislation is going through parliament as we speak, and that will be retrospective from the published date of that review.
“This was before these donations came through, to be fair. We didn’t know that donors were going to be putting that money in, and this isn’t about individual donors to a political party. This is an issue that has been raised about protecting our democracy from foreign interference, and the government is taking action on that.”
Reform UK’s economy spokesperson, Robert Jenrick, said the two donors were well aware of the law. He said: “[Ben Delo] has actually returned to the UK in part so that he can comply with the changes to law.
“Now, look, it might be that Angela Rayner or the government keep trying to change the law to make it even harder for people to donate to Reform. Nothing would surprise me, but as it stands, we believe these are entirely in line with the law.
“And I just say it’s a huge vote of confidence in Reform. It’s a breakthrough moment, really, for the party. It means that we will be battle ready if Andy Burnham calls an election, and we can compete now finally on a fair, even playing field with the two old parties.”
