Labour will force political donors to prove they pay UK taxes before they can contribute to parties

Jeremy Corbyn's party promises overhaul of lobbying laws

(Simon Calder)

Political donors would have to prove they pay tax in the UK under reforms to party funding rules promised by Labour if they win the general election.

In a move apparently aimed at the wealthy individuals and companies who provide much of the Conservatives’ funding, Labour said it would ban donations from anyone not domiciled in the UK or non-resident for tax purposes, as well as anyone not compliant with UK tax laws.

And Jeremy Corbyn’s party would require the publication of names of anyone giving more than £7,500 in a year who attends events such as donor’s dinners with political leaders.

Conservatives took in the lion’s share of donations during the first two weeks of the election campaign, with more than £8.6m, compared to Labour’s £3.7m and the Brexit Party’s £2.5m.

Shadow cabinet minister Jon Trickett said Labour would also ban MPs from having second jobs – other than those needing to maintain professional registrations, such as nurses.

And former ministers would be barred from lobbying government for a minimum of five years after leaving office, rather than two years under the current rules.

Mr Trickett said: “Under the Tories, politics and government is in serious danger of becoming a playground for the rich and powerful, with decisions often made behind closed doors in the interests of a small few at the expense of the many. This is very worrying for our democracy.

“The rules that are supposed to prevent this are completely ineffective. The time for their replacement is long overdue.

“Labour will protect our democracy with tough new regulations, as part of our democratic revolution to create real change in how this country works.”

Labour’s reforms would also ban the use of shell companies to disguise the ultimate source of donations to political parties.

Labour's Jon Trickett (Getty)

Meanwhile the party also promised to scrap the Lobbying Act and replace it with a new lobbying register which would include in-house corporate lobbyists, thinktanks and consultants who were excluded when David Cameron drew up the original legislation in 2014.

The scope of the legislation would be extended to cover lobbying of MPs, ministers, and any senior employee of central government and not just permanent secretaries and special advisers.

And there would be tougher sanctions for breaches, including a ban on future meetings with public officials as well as cash fines.