Democracy Minister Rushanara Ali is planning a "series of new measures" to protect against foreign political interference.
Tech billionaire Elon Musk, now adviser to US President Donald Trump, caused some concern in the UK when it was reported he could donate as much as £78m ($100m) to Reform UK through a UK branch of his social media company X.
A public petition to remove loopholes that allow wealthy foreign individuals to donate to UK political parties was signed by more than 142,000 people, sparking a debate by MPs.
Is democracy really democracy when you can buy it?