Labour opens door to banning Musk donation with new law

The Government is considering new laws that could prevent Elon Musk from donating millions to Reform UK.  

House of Commons Leader Lucy Powell hinted that tightening political donation rules could be part of broader electoral reforms.  

Nigel Farage, leader of Reform UK, recently disclosed that Musk, a tech billionaire and ally of Donald Trump, is contemplating a significant donation, potentially around $100 million (£78.8 million).  

Labour is facing calls to fast-track regulations limiting how much foreign nationals can contribute to UK political parties via their UK-based companies.  

When asked if the Government would act to block Musk’s potential donation, Powell stated there were no “immediate plans” but left open the possibility of future restrictions as part of electoral reforms.

She told Sky News’ Sunday Morning with Trevor Phillips: “We’ve no immediate plans to do that, but we do have a manifesto commitment to look more broadly at our elections regime in this country, from things like votes at 16, which we’re committed to, but also to make sure that our electoral system has got that integrity and is robust from many of the new issues that face undermining our democracy and our elections.

“But just to be clear that foreign donations to UK-based political parties is prohibited under current law, so that’s something that already exists.”

Foreign donations are not allowed in UK politics, but contributions can be made through a “UK-registered company which is incorporated in the UK and carries on business in the UK”, according to Electoral Commission rules.

Given that Mr Musk’s biggest firm, Tesla, made millions in its UK branch this year, he could theoretically make a donation through the company’s British subsidiary.

‘Comitted to changing UK elections’

Pressed on whether the Government could take action during this parliamentary term, Ms Powell suggested the clampdown could feature in an Elections Bill planned for the next parliamentary session, which starts in July.

Labour pledged in its manifesto to “protect democracy by strengthening the rules around donations to political parties”, as well as reducing the voting age to 16.

“We are committed to bringing forward some changes to the way in which elections are run in this country,” she said.

“There will be an Elections Bill probably in the next parliamentary session, but obviously we’ve not made those decisions yet because we are committed to things like votes at 16, which is in our manifesto.

“And our manifesto also said that we would look at other issues to make sure that our elections in this country are fair, are robust, are free from many of the issues that are undermining our democracy at the moment, like mis- and disinformation, foreign state actors and so on, and making sure that the issues around donations are also fair and robust as well.”

Mr Farage said “the issue of money was discussed” when he held talks with Mr Musk at Mar-a-Lago, Mr Trump’s Florida resort, last week.

Writing for The Telegraph, he said the billionaire “left us in no doubt that he is right behind us” and launched “ongoing negotiations” about a financial contribution.

Richard Tice, the deputy leader of Reform, said the party would use Mr Musk’s millions to recruit an army of young voters ahead of the next election.

He said on Thursday: “Young people are very energised about what we’re doing and we’ve got to make sure they’re on the electoral roll.

“That’s something Musk did brilliantly. It takes skill, expertise and money and that’s a big opportunity.

“If we get lots of young people who may not have voted at all and who are voting Reform you’ll see us potentially leading the polls.”