UK

Government launches investigation into foreign money in UK politics

The announcement comes after the jailing of former Reform UK leader in Wales Nathan Gill for taking bribes to make pro-Russian statements.

Former leader of Reform UK in Wales Nathan Gill was sentenced to 10-and-a-half years in prison last month for taking money to make pro-Russian statements
Former leader of Reform UK in Wales Nathan Gill was sentenced to 10-and-a-half years in prison last month for taking money to make pro-Russian statements (James Manning/PA)

The Government has launched an independent review of foreign financial interference in UK politics, after the jailing of a former MEP for taking Russian bribes.

Housing, Communities and Local Government Secretary Steve Reed said the conduct of Nathan Gill, who was sentenced to 10-and-a-half years in prison for taking money to make pro-Russian statements, was a “stain” on British democracy.

Gill was an MEP for Ukip and the Brexit Party, led by Nigel Farage, before joining Reform UK under Mr Farage, where he served as its leader in Wales.

Nathan Gill, front right, was an MEP for Ukip and the Brexit Party, led by Nigel Farage, front left, before joining Reform UK
Nathan Gill, front right, was an MEP for Ukip and the Brexit Party, led by Nigel Farage, front left, before joining Reform UK (Ben Birchall/PA)

Mr Reed told MPs that the review would be chaired by former top civil servant Philip Rycroft, who had worked in the Cabinet Office and Department for Exiting the European Union under previous Conservative governments.

Mr Rycroft is expected to report back by March next year.

Digital cryptocurrency donations to political parties and Beijing’s influence would both be “in scope” of the review, Mr Reed told MPs.

The minister told the Commons that “events have shown that we need to consider whether our firewall is enough”.

He said: “Following discussions with ministerial colleagues, I have today ordered an independent review into foreign financial interference in UK politics.

“This will be led by the former permanent secretary Philip Rycroft, reporting both to me as secretary of state responsible for elections and to the minister of state for security (Dan Jarvis) as the chair of the defending democracy task force.

“The facts are clear. A British politician took bribes to further the interests of the Russian regime, a regime which forcefully deported vulnerable Ukrainian children and killed a British citizen on British soil, using a deadly nerve agent.

“This conduct is a stain on our democracy. The independent review will work to remove that stain.”

Shadow local government minister Paul Holmes welcomed the review and wished Mr Rycroft well in his work going forward.

He told MPs: “Protecting the integrity of our democratic system from foreign interference is not a partisan issue. It goes to the heart of public trust in our elections.

“Interference in our elections from foreign actors is something that we must all be vigilant against and I concur fully with what the secretary of state has said about Nathan Gill and join him in his sincere thanks to the CPS (Crown Prosecution Service) and the police.

“Any crime such as this deserves full condemnation from all members of this House.”

Mr Holmes asked: “Will China be included within the scope of the independent review?”

In his reply, Mr Reed said: “The review is fully independent but I would expect China to be fully in scope because of the questions that have been raised about the threats that China poses to national security – well documented.”

Nathan Gill was sentenced to 10-and-a-half years in prison
Nathan Gill was sentenced to 10-and-a-half years in prison (Yui Mok/PA)

He added that cryptocurrency donations would be “in scope” during the review.

“I expect the independent reviewer to take a view on that matter – it’s been raised on all sides of the House previously, but I’m sure he and other members of his party will want to make their views clear to the reviewer as he comes to his conclusions,” Mr Reed said.

Liberal Democrat spokeswoman for local government Zoe Franklin spoke in support of the review, before urging the Government to “commit to donation caps”.

Mr Reed did not directly respond to this plea, but he said: “It’s very important that the House of Commons stands united against the potential threats to our democracy from hostile foreign state actors.”

Labour former minister Justin Madders said the “role of social media companies” should be looked at as part of the review, “because there’s no doubt that foreign state actors are absolutely using that as a vehicle to spread disinformation and undermine our democracy”.

Reform UK deputy leader Richard Tice said his party supported the review
Reform UK deputy leader Richard Tice said his party supported the review (Stefan Rousseau/PA)

Mr Reed said: “It’s an independent review, and the reviewer and his team will be able to look at whatever they think may be problematic relating to the core terms of reference.”

Meanwhile, Reform’s deputy leader, Richard Tice, did not respond to comments about Gill but said his party supported the review.

He said: “The irony of hearing the Secretary of State talk about protecting democracy a week after cancelling mayoral elections will not be lost on millions of British voters, but nevertheless, we welcome this review, of course.”

Mr Tice questioned whether influence on the Labour Party would be in scope of the review, with Mr Reed responding that “all potential sources of malign foreign financial interference are in scope”.

Downing Street said Gill’s case was not the only reason for the review, also pointing to interference by alleged Chinese spy Christine Lee as among the actions in recent years by “foreign threat actors” which had prompted it.

The review will not reinterrogate suggestions of interference in the Brexit referendum, No 10 said, and is not aimed at any one particular political party, the Prime Minister’s spokesman stressed.

Speaking at the Foreign Affairs Committee, Yvette Cooper meanwhile warned of disinformation disseminated internationally “on an industrial scale” by Russian-backed groups.

The Foreign Secretary told MPs on the committee that foreign financial interference has been “happening in countries across the world”, after the announcement in the Commons.