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Written question asked by Jon Trickett (Labour) on Tuesday, 16 November 2021, in the House of Commons. It was due for an answer on Thursday, 18 November 2021. It was answered by Kemi Badenoch (Conservative) on Wednesday, 24 November 2021 on behalf of the Department for Levelling Up, Housing and Communities.

Companies: Political Parties

Question

To ask the Secretary of State for Levelling Up, Housing and Communities, what assessment he has made of the potential merits of introducing measures to require that any private or public company that makes a political donation or loan must be able to demonstrate that it generates sufficient income from UK trading to fund any contribution it makes.

Answer

Under the Political Parties Elections and Referendums Act 2000, political parties and regulated donees have a legal obligation to ensure that they only receive donations from permissible sources – and in the case of companies, that they are properly carrying on business in the UK. Companies must be registered with Companies House and incorporated in the UK. Corporate donations amounting to over £5,000 in any twelve month period must also be authorised via a company resolution.

The Electoral Commission already produces guidance which helps campaigners understand if a donor is permissible. This includes detailed guidance on verifying that a company is legitimately ‘carrying on business’.

Notwithstanding, the Government is supportive of the principle of further guidance to promote best practice and support campaigners in taking a risk-based approach.

Secondary information

Type
Written question
Reference
75809
Session
2021-22
Grouped for answer
Yes
Transferred
Yes
Subjects
Companies Finance Political parties Trade
Link
View this Written question on www.parliament.uk