This is a good start but it is not going far enough:

Political parties will be required to assess companies they are receiving donations from against a series of tests, proving their connection to the UK or Ireland. Companies used for political donations will have to prove they are generating income in these countries.

Only physical persons living in the UK should be allowed to donate and donations should be capped at £5k - £10k per person per year. Companies should not be allowed to donate at all.