Labour plans to ban foreign donations to UK parties

Labour Party officials are reportedly working on new rules to stop foreign donors from giving money to UK political parties. This move comes after billionaire Elon Musk met with Reform party leader Nigel Farage in December. There are concerns that Musk might make a significant donation to Reform. Currently, UK parties can receive donations from any company that is registered in the UK. This system allows foreign donors to use UK companies to contribute money indirectly. Labour aims to change this rule to prevent such actions. Musk, who is a US citizen but was born in South Africa, cannot personally donate to British parties. However, he could potentially fund Reform through the UK branches of his companies. Notably, the UK arm of Musk's company, X.AI London Limited, has not reported any profits, which means he may be unable to donate under the proposed new rules. Additionally, ministers may implement stricter checks on donations from unincorporated groups. Labour believes that Musk may try to donate to Reform shortly before the next general election.