Ministers mull new laws to crack down on foreign spies working in UK banks and businesses

A new law to crack down on foreign spies working for banks and businesses is reportedly being drawn up by the government to curb the influence of "red money" in the UK.

The legislation is part of a raft of measures designed to get a grip on money flowing into the UK from Russia and China, following high-profile security scares such as the poisoning of former spy Sergei Skripal and his daughter Yulia last March, which prompted the government to impose a wave of sanctions on Russian figures in the UK.

If passed, the law would force peers in the House of Lords to declare how much money they have earned from foreign companies, the Sunday Times reported.

Read more: Cabinet ministers call for PM to be included in Huawei leak inquiry

The move comes as concerns grow over the government's decision to allow Chinese telecoms giant Huawei a role in building the UK's 5G network, after allies such as the US warned that it was being used by the government to spy on other countries, allegations that Huawei has denied.

Ben Wallace, the security minister, told the newspaper: “Countries that seek to undermine the west target vulnerabilities in their politics and media. The UK has a strong mainstream media that gives us better resilience than most but I am certain that one of our weak points is where we lack transparency in our political system.

Read more: Government ‘cannot exclude’ Huawei leak inquiry

“Salisbury taught us we have to harden the environment and plug the gaps where foreign intelligence agents exploit our open society and economy,” Wallace said.

A number of cabinet ministers also told the newspaper that Theresa May should be included in an inquiry into who leaked the information that the UK would allow Huawei to build 'non-core' parts of its 5G network.