The government has appointed former senior civil servant Philip Rycroft to lead an independent review into foreign financial interference in UK politics. In a letter dated 16 December 2025, Housing, Communities and Local Government Secretary Steve Reed confirmed the appointment, citing the recent jailing of former MEP Nathan Gill for bribery as evidence of vulnerabilities requiring a systematic response.
The Terms of Reference published by the Ministry of Housing, Communities and Local Government state that the review supports the cross‑government Counter Political Interference and Espionage Action Plan. It will assess the resilience of party finances and associated safeguards and make recommendations. Findings will be delivered to the Secretary of State and the Security Minister and published on GOV.UK by the end of March 2026, with the reviewer supported by a small departmental secretariat.
The scope directs the reviewer to examine whether existing political finance laws and current checks and balances are effective in detecting and mitigating foreign interference and bribery. It also asks for consideration of whether criminal enforcement needs strengthening and whether the Electoral Commission’s enforcement powers and the rules governing the constitution and regulation of political parties remain adequate.
The Terms of Reference flag specific risk channels, including difficult‑to‑trace assets such as crypto‑currencies and cash, and third‑party funding of political campaigns and advertising. The reviewer is tasked with recommending ways to strengthen mitigations against these risks. Allegations relating to the 2016 referendum are expressly out of scope.
Under the Political Parties, Elections and Referendums Act 2000, donations over £500 must come from permissible sources, including individuals on a UK electoral register (including overseas electors), UK‑registered companies that carry on business in the UK, UK trade unions, LLPs and certain associations. Parties and campaigners must verify permissibility promptly and return impermissible donations. These requirements sit alongside the Elections Act 2022 changes affecting overseas electors.
Government and parliamentary material reiterate the principle that foreign money has no place in UK politics and that proxy donations are prohibited. Parties are required to take reasonable steps to verify the true source of funds, with rules applying across parties, non‑party campaigners and candidates.
The review’s work will sit alongside the Foreign Influence Registration Scheme, created by Part 4 of the National Security Act 2023. FIRS introduces a two‑tier registration regime for political‑influence activity carried out at the direction of foreign powers or specified entities, designed to improve transparency around foreign‑linked activity in the UK.
Procedurally, the reviewer will meet relevant individuals and organisations and review documentation deemed relevant. Once finalised, and following security and fact‑checking processes, the report will be published on GOV.UK. Ministers intend to use the findings to inform final provisions for a proposed Elections Bill.
For party treasurers and compliance teams, the near‑term task is preparatory. Organisations should stress‑test ‘know your donor’ processes for corporate donors and unincorporated associations, scrutinise beneficial ownership and UK business activity, and review controls for third‑party campaign material and digital advertising, particularly where crypto‑assets or cash are involved. These reflect areas highlighted in the Terms of Reference and existing Electoral Commission guidance.
Devolved differences remain pertinent: while Northern Ireland parties have limited scope to accept donations from certain Irish sources, the wider prohibition on foreign donations otherwise applies. Further updates are likely to come via the Defending Democracy Taskforce and the government’s elections reform programme set out in its strategy for modern and secure elections.