Labour has vowed to “urgently” close a loophole which could let Elon Musk donate millions of pounds to Reform UK.
A minister told parliament that the government would “take all necessary steps to ensure effective controls are in place to safeguard our democracy”.
Musk, the world’s richest man, is reportedly prepared to give up to $100 million to Nigel Farage’s party.
Although foreign nationals are banned from donating to British parties, there is speculation that he could funnel the money through the UK arm of X, the social media platform.
In the House of Lords today, former Labour cabinet minister Lord Blunkett asked what the government was doing to keep foreign money out of UK politics.
Communities and local government minister Baroness Taylor said: “The government has committed in its manifesto to protect democracy by strengthening the rules around donations to political parties.
“Foreign money has no place in our elections and the rules already provide clear safeguards against foreign interference.
“We are considering changes which will further protect our system from such risks, and we are engaging with the Electoral Commission as we do so.”
Lord Blunkett said: “Would she agree that true patriots and those who believe in the sovereignty of our democratic system in the UK will want to see off those, whether they are malign state actors or multi-billionaires who seek to interfere in our democracy? And is it not now that we must act to safeguard our future?”
Baroness Taylor replied: “I agree with my noble friend and may I assure him that the government takes the threat posed by disinformation and foreign actors interfering in our democratic processes very seriously.
“It is and always will be an absolute priority to protect the UK against foreign interference. While it is clear that foreign donations to parties are not permitted, the government recognises the risk posed by malign actors who seek to undermine and interfere with our democratic processes.
“That’s why we will take all necessary steps to ensure effective controls are in place to safeguard our democracy.
“We share the sense of urgency and as soon as we have developed our proposals we will inform parliament.”
Musk has been waging an online vendetta against Keir Starmer’s government since last summer’s riots, when he said that “civil war is inevitable” in the UK.
More recently, he described safeguarding minister Jess Phillips as a “rape genocide apologist” for rejecting calls from Oldham Council for a national inquiry into the child grooming gangs scandal.
He also accused Keir Starmer of being “complicit” over his role as former head of the Crown Prosecution Service.
Musk was also pictured last month with Farage and Nick Candy, Reform UK’s treasurer, further fuelling speculation that he wanted to give money to the party.
However, that was called into questions when he called for Farage to be replaced as Reform’s leader.