Overseas political funding capped and crypto donations blocked in blow to Reform UK

Legislation subject to MPs’ approval but will be backdated due to urgency of threat to UK democracy, says minister

Keir Starmer is set to embark on a fundamental overhaul of the political finance system, starting with an emergency ban on cryptocurrency donations and £100,000 cap on donations from Britons living abroad in a blow to Reform UK.

In a hugely significant move, the government said it would bring in the annual cap as well as a moratorium on crypto donations from Wednesday as part of its new elections legislation.

Requiring third-party campaigners to declare donations all year round, not just election periods, and allowing funding only from permissible donors.

More stringent checks on the source of funds from political donors, bringing it more into line with know-your-customer checks in the financial services industry.

Preventing donations from shell companies by ensuring funding is from post-tax profits rather than revenue.

Requiring foreign consultant lobbyists to join the official register, from which they are currently exempt because they do not charge VAT.

Banning foreign-funded political adverts outright.