To ask His Majesty’s Government what assessment they have made of the level of transparency required for the funding of think tanks, including in relation to funding from abroad.
My Lords, it is for each individual think tank to publicise and declare their sources of funding. Think tanks with charitable status must follow Charity Commission guidance, ensuring political activity remains subsidiary and exclusively furthers their charitable purposes. The Government are committed to responding to threats of foreign interference in our democracy. We eagerly await the findings of Philip Rycroft’s independent review into countering foreign financial influence, which will report by the end of March.
My Lords, for 25 years, political parties have had to declare their significant sources of income, but so-called think tanks that promote the causes of some political parties, and undertake research and produce reports helpful to them, do not have to declare any such funding. The right-wing think tanks based at Tufton Street refuse to declare their sources of funding but have been linked with the fossil fuel industry, property developers, tobacco companies and dark-money trusts in the US. Since 2012, anonymous foundations in the United States have poured over $14 million into these groups. Money to them is also filtered via charities. Will the Minister confirm that the elections Bill will tackle this anomaly and make such funding completely transparent?
I thank the noble Lord for his work in this space to make sure that we have faith and trust in the many democratic institutions that are part of the wider ecosystem. On the substance of his question, electoral law already covers think tanks that donate or spend during regulated election periods. Our reforms will ensure that those with a genuine UK connection can contribute to our democracy—for instance, by requiring recipients to undertake “know your donor” due diligence to guard against illegitimate foreign funding. The Government are committed to protecting our democracy from foreign actors. As I said, the Rycroft review will form a vital part of this work. I look forward to discussing this—over many hours, probably—in your Lordships House when the legislation is in front of us.
My Lords, I am the director of the Global Warming Policy Foundation—one of those institutions that occupies an address in Tufton Street. I can declare most absolutely that the foundation has never and will never take money from the fossil fuel industry. But if changes are afoot in this whole field—the Minister said clearly that if institutions are involved in the political field, they are already caught by regulations requiring reporting to the Electoral Commission—let us hope they apply as well to the left-wing charities that some would prefer, if they are to apply to right-wing charities that some do not like.
I am not sure there was a question in there, but I will take the opportunity to reassure your Lordships that, just as CC9 guidance for the Charity Commission applies to every charity, regardless of their charitable objectives, and just as the electoral law applies to every third-party campaigner, the issue is making sure that people who actively participate in our elections are duly registered as third-party campaigners.
My Lords, on transparency, is the Minister aware of the Fundraising Regulator’s concerns about the registration of very small community interest companies at Companies House? They prefer that route of registration in order to avoid Charity Commission oversight and evade all accountability in terms of fundraising. I understand that the Government are in talks with the Fundraising Regulator and others to improve that situation. Can she tell the House when those talks might come to an end?
I thank the noble Baroness for her question. I am afraid I am not in a position to update her on the timescale or the development of those talks, but I will make sure that she gets an answer.
My Lords, I declare an interest: I used to work for the all-party think tank Chatham House, which always declares its donors, as all partisan or non-partisan think tanks should. The Minister may have noticed that, some days ago, the Free Speech Union took out an emergency injunction to prevent the publication of its donors. We are talking about a range of bodies which are partisan think tanks, lobbies trying to influence the political debate, and third parties, in effect, and we need to tighten the rules on those bodies. It is money coming in from the United States and the UAE, as well as from hostile states such as Russia and China in much smaller numbers. Some of the money coming in from the Gulf states to the Blair Foundation, I think, is very considerable. Should there not be tougher rules to make sure that transparency is insisted on in all cases?
The noble Lord will be aware that last year, we published our anti-corruption strategy, which outlined the risks posed by corrupt actors who are seeking to influence UK institutions or launder their reputations by engaging in some organisations. As I have said before from this Dispatch Box, we have also recently launched the Counter Political Interference and Espionage Action Plan, which addresses how some state actors use different elements of the state. But the one thing that is incredibly important within the context of all these issues is that fundamentally, our country is run by the Government, and it is Ministers who make final decisions, supported by an impartial Civil Service. Those aspects are key and, while engagement with wider stakeholders is incredibly important and is covered by the Ministerial Code, it is about the integrity of our Ministers and making sure that we have a consistent, impartial Civil Service.
My Lords, is not the only way to address this to require all think tanks to publish annual reports on where their sources of funding are coming from? It is clear that many have a political agenda, and it is important for our democracy that they are transparent.
My Lords, if a think tank is a charity, it is subject to regulation by the Charity Commission. If it is engaging in election activity, it is subject to the Electoral Commission for any spend over £10,000 and donations over £700. But the noble Lord raises an important point, which is why we asked Philip Rycroft to undertake his review, and I look forward to reading it at the end of March.
My Lords, think tanks plays an important role in advancing democratic engagement by developing ideas and policy. There is currently no legal requirement for them to disclose their funders, and imposing such a requirement on charities and research institutes would risk a disproportionate intrusion into civil society. The ability of organisations across the political spectrum to contribute freely to public debate is an important part of our civic strength. Will the Minister therefore confirm that the Government recognise the value of the current arrangements in enabling think tanks to carry out this work and that they have no plans to change that existing regime?
I hate to disappoint the noble Baroness, but I cannot and will not. To be very clear, while I appreciate and have worked directly with think tanks—as I think most Members of your Lordships’ House have—and sat on panels and engaged with them, the reality is that if a regulatory framework is required to make sure that people know who they are engaging with and whether there are any ulterior motives, we have to be clear on what those are. I have written for organisations such as the Policy Exchange, and I used to run HOPE not hate, a third-party campaign organisation. There are different structures that everybody has to engage with, but it is only right and proper that we know who is funding what, when and why.
My Lords, do the reforms the Government have coming down the line cover the structure and scale of think tanks? One might call itself the “worldwide progressive institute” and you would think, “Oh, they must be good”, but it is actually just a chap and his dog in his mum’s spare bedroom. So, will the reforms cast some light into the spare bedroom?
I was hoping we would go for the dog rather than the spare bedroom.
As I have said, Philip Rycroft is looking at some of these issues of foreign interference in the round. There is a genuine issue, and my noble friend raises a genuinely important point about knowing who we are engaging with and why. We have seen in recent days, not least when I was in front of your Lordships’ House discussing it, why we need the espionage strategy, and to make sure people know who they are talking to and why. This is the case for lobbying as much as for think tanks, and we need to make sure the right regulatory environment is in place.