Foreign billionaires like Elon Musk should face a block on political donations, an MP has said, amid fears British elections have become a “bidding war for influence”.
Manuela Perteghella proposed the Political Donations Bill on Wednesday, which would limit how much donors both in the UK and abroad can give to political parties.
It would also set new rules around donations from companies owned by foreign individuals, including in cases where “oligarchs and foreign billionaires” funnel their money through a UK-based company to evade the existing restrictions.
The Liberal Democrat MP warned that without rules to cap or block donations, ministers and the elections watchdog are “powerless” to stop rich individuals from influencing UK elections.
Ms Perteghella told the Commons: “This is a Bill that will take big money out of British politics, protect our democracy from foreign interference, and restore public trust in our electoral system.
“For too long, our politics have been exposed.
“It is far too easy for those who do not have the national interest of our country at heart, who have made their wealth through illicit means, to funnel money into British politics.
“This Bill is simple in its aims, to ensure that it is the people of this country – not the deep pockets of foreign billionaires, oligarchs or corporate interests – who decide our country’s future in elections and referendums.”
The MP for Stratford-on-Avon warned that “trust in our political system is faltering” and described a “bidding war for influence ripe for exploitation by oligarchs and foreign billionaires”.
Political parties can only accept money or gifts from individuals if they are registered in a UK electoral register.
But foreign-owned companies which are registered and incorporated in the country can make donations.
Mr Musk, who leads the US Department of Government Efficiency (DOGE) set up by US President Donald Trump and owns the social media platform X, formerly Twitter, was reportedly in talks with Nigel Farage about making a donation to Reform UK, which has five MPs.
Ms Perteghella said: “Just over a month ago, people across Britain recoiled in horror to read the news that US billionaire Elon Musk planned to donate an uncapped amount of money to Reform.
“If he were to follow through on this plan, we would be powerless to stop him.”
She later added: “This isn’t just about fairness, it’s about national security.”
The proposed new law will be listed for a debate on May 16.