Ministers are drafting plans to prevent foreign donors from giving unlimited funds to UK political parties, reports have suggested. It comes after Tesla billionare Elon Musk met with Reform leader Nigel Farage in December amid speculation he is set to significantly boost the party’s coffers.

Parties can accept donations from any company registered in the UK currently which has led to foreign donors using the firms to make indirect contributions. The rules allow for British companies to be used in this way even if they don’t make any money.

Labour is said to be looking at changing that.

Most Popular Comments

“Well that’s me voting for Reform out of principle alone especially when, Labour given £4m from tax haven-based hedge fund with shares in oil and …” 45

“The old parties are frightened stiff about the Reform vote. That’s the reason why …” 40

“Starmer’s petty rules and regulations won’t stop Musk. If there’s a will there’s a way” 16

JOIN THE DEBATE

Mr Musk, a US citizen born in South Africa, cannot legally make a personal donation to a British political party.

But he could hand Reform a a donation through of the UK subsidiaries of his various companies.

But the British arm of Mr Musk’s company X, known as X.AI London Limited, has yet to report making any money – meaning he could not use it to donate to Reform under the proposed plans.

Ministers are also said to be considering the introduction of enhanced due diligence checks on donations from unincorporated associations, the report by Sky News said.

iT added that Labour’s belief is Mr Musk is likely to donate to Reform just before the next general election.