12AUG

The finance bill Reform outran returns

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A finance bill Reform UK outran to the ballot box is back in the Commons, hardened by the Rycroft Review the government accepted in full on 6 July.

← Back to Reform bleeds councillors, wins by-elections Jump to analysis ↓

PoliticsDeveloping

Key takeaway

A finance bill declared dead in May returned in July, hardened by the Rycroft Review.

The government accepted the Rycroft Review in full on 6 July, and the Representation of the People Bill returned to the Commons for Report stage and Third Reading in the week of 14 July. ¹ The bill amends party-finance law: it bans cryptocurrency donations, caps overseas giving, and tightens the rules on company donors. Reform UK outran it to the ballot box, banking £12 million in crypto before winning 14 councils on 7 May.

Parliament had left the bill out of May's King's Speech , stranding electoral-finance Reform for a session. The Rycroft Review hardens the detail. Overseas donors now face a one-year residency test before giving more than £100,000, and company donations are assessed against five-year post-tax profits rather than revenue, which closes the loss-making shell-company route. ²

Reform entered polling day on 7 May with no statutory duty to return its crypto backing; the Rycroft measures now write those rules into law after the result.

Deep Analysis

In plain English

Britain's rules on political donations have a gap: parties don't have to prove where cryptocurrency gifts really come from. A government-commissioned review, the Rycroft Review, looked at how to close that gap, and ministers have now accepted every one of its recommendations. The bill that would write those rules into law had been quietly dropped in May. It's now back, and MPs pushed it through its final Commons stages in the same week the government approved the review, tightening the rules on foreign donors and shell companies before the year is out.

Deep Analysis

Root Causes

The Bill's absence from May's King's Speech reflected a drafting gap: the Electoral Commission had confirmed in April it could not verify Reform UK's cryptocurrency donations because the processor, Radom Pay, operates from Poland outside FCA jurisdiction, a cross-border enforcement hole no single UK statute closes without new company and residency tests.

The Rycroft Review's remit was commissioned specifically to fill that hole, which is why its full acceptance rather than partial adoption determined whether the revived Bill would close the Radom Pay loophole or merely relabel it.

What could happen next?

Consequence
Reform UK, the only major party to have received large cryptocurrency donations, faces the first statutory framework requiring it to justify or return past crypto gifts.

Source Landscape

Primary parallel: PPERA 2000 followed the same reactive pattern: the 1997 Ecclestone donation controversy pushed Parliament from public outcry to a statutory donor-permissibility regime within three years, hardening rules only after a single high-profile gift became a political liability.

Counter-parallel: The Political Parties and Elections Act 2009's controlled-expenditure limits were diluted by cross-party negotiation before passage; the Rycroft Review's crypto provisions have so far survived intact, a rarer outcome for donor-law Reform under election-year pressure.

Consensus view: The Hansard Society's constitutional unit notes that reviving a bill omitted from the King's Speech via a Report-stage amendment programme, rather than a fresh First Reading, compresses scrutiny of the Rycroft Review's overseas-donor threshold into a single sitting week.

Counter-view: The Institute for Government argues the compressed timetable mirrors how the Political Parties, Elections and Referendums Act 2000 itself moved from scandal to statute in under a year, and that a two-month gap between the King's Speech omission and Report stage is not unusually rushed by that benchmark.

Key tension: Whether skipping back to committee-stage amendments already tabled in March, rather than restarting scrutiny from Second Reading, gives MPs adequate time to test the Rycroft Review's £100,000 overseas-donor threshold before Third Reading in the same week.

Sources:GOV.UK

Mentions:Representation of the People Bill →Rycroft Review →Reform UK →Institute for Government →Parliament →King's Speech →Hansard →

First Reported In

Update #12 · The finance bill Reform outran is back

GOV.UK· 15 Jul 2026

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Causes and effects

This Event

The finance bill Reform outran returns

The reform Parliament shelved before the May elections has returned tougher, regulating party funding the winners had already banked.

Led to

King's Speech: 27 bills, no RPA Bill

The bill's revival reopens the finance-reform thread the King's Speech omitted in May.

Occurred 13 May 2026

Read story →

Different Perspectives

Sinn Féin

Sinn Féin's John O'Dowd ruled out a Stormont walkout on 11 August despite calling the DUP increasingly difficult to work with, closing a question Conor Murphy had left open a fortnight earlier. Only Sinn Féin or the DUP can collapse the joint First Minister office, so the denial gives up the party's own leverage in budget talks.

Scottish Labour

Michael Marra, Joe Fagan and Monica Lennon declared for the Scottish Labour leadership, but each needs nine endorsements from MSPs, MPs and unions before members vote, with nominations closing 17 August. Lennon, the only woman standing, says the threshold favours a male-run process and could produce an all-male ballot.

Plaid Cymru

Plaid Cymru held both Welsh wards Reform challenged in the same set of by-elections, Bro'r Llynnoedd on Anglesey by 48.5% to 39.3% and Hengoed on Caerphilly by 49.9% to 36.4%. The party that leads the Welsh government kept Reform in second in both.

Conservative Party

The Conservatives lost three of ten council by-elections fought on 30 July and 6 August, two wards to Reform in Norfolk and one to the Greens in Surrey, continuing a run of losses since the May sweep. Every seat gone had been Conservative-held going into the contest.

Reform UK

Reform's 56 lost councillors since May came from defection, suspension and resignation, not lost votes, while the party gained three of ten council by-elections and finished second in four more over the same fortnight. That record undercuts reading the churn as electoral retreat.

Democratic Unionist Party

Gavin Robinson rejects Sinn Féin's characterisation of the institutions as precarious, says the DUP is "committed to" delivering for the public, and will not be "goaded" into a dispute he attributes to Treasury funding rather than unionist bad faith.