The Parliamentary Secretary, Cabinet Office (Chloe Smith)
It is a pleasure to be here with you tonight, Mr Deputy Speaker. I thank my hon. Friend the Member for South Thanet (Craig Mackinlay) for raising this issue. I am glad that we have been able to have a lengthy debate in which to fully understand these matters. He has raised a number of important points, and I am glad of the opportunity to respond. I also thank my hon. Friend the Member for Cheltenham (Alex Chalk) for adding his remarks, and all those who have done so through interventions.
First, I do recognise the very difficult time that my hon. Friend the Member for South Thanet has recently gone through. I hope that he takes solace not only from his acquittal but from the further remarks that the judge went on to make about the good faith in which my hon. Friend was operating. It must be said, however, that while he was acquitted, one person in the case was found guilty of breaching electoral spending rules. The rules that govern the spending of political parties and candidates at elections are important. They provide for a level playing field, as has been discussed, both for parties and candidates. The extent of their importance and the seriousness of any breach can be seen in the judge’s remarks during sentencing on the other part of the case. I will not say anything further tonight on the details of that case, but I do want to address the points on electoral law raised by my hon. Friend. The first of those concerns the Supreme Court judgment on notional expenditure, and the second touches on the divide between candidate and party expenditure. A few other points have been raised, but I will focus on those raised by my hon. Friend.
I should say at the outset that the laws that govern our elections are an integral part of the UK’s democratic framework and therefore something that we should be proud of, respect, protect, and aim to promote. They ensure that there is a level playing field for all candidates, parties and campaigners participating in UK elections, provide a level of protection in regulating the registration of campaigners and parties, ensure that election-related expenses are accounted for, and provide checks and balances. In addition, the Electoral Commission, as the regulator, plays an important role in the electoral framework to ensure that candidates, parties and campaigners are complying with the law.
Let me turn first to my hon. Friend’s point about his disagreement with the Supreme Court’s ruling that there should be no additional requirement for a candidate or an agent to authorise the provisions of free or discounted goods or services. He speaks of amending the primary legislation that governs this point and proposes that it could be amended by way of a statutory instrument so that authorisation becomes required in both types of case. The Government are considering this judgment very carefully and will continue to do so, as will I, in the light of the arguments that have been put tonight. There are serious implications for the law on notional expenditure for electoral candidates. We will continue to talk to the political parties to understand the implications for future campaigns and to consider potential solutions. Indeed, I will be discussing this only tomorrow with a cross-party delegation from the other House.
However, one point I would make tonight is on whether this could or should be done through primary or through secondary legislation. That deserves some consideration. It may not be appropriate, entirely, to seek to amend the primary legislation, as proposed, through the use of the order-making power that is found, as my hon. Friend set out, in paragraph 15 of schedule 4A to the RPA 1983. That schedule sets out the general categories of election expenses. His proposed changes would be a fundamental change to the meaning and effect of notional expenditure provisions in that legislation. It is therefore a fair consideration that any such amendment should be done by primary legislation rather than by an order-making power. I offer that to the House in terms of considering the complexity of the change that we might be looking at.
Mr Harper
I approach this matter with care, as I have been in my hon. Friend’s position in the past and know how complex this legislation is. May I just probe her on the answer she is giving to my hon. Friend the Member for South Thanet (Craig Mackinlay)? I thought that his solution was not actually making a fundamental change but putting the legislation back to what we all thought it was, and what I think Members had thought they were doing when they legislated in the first place.
Mr Harper
I see that my hon. Friend is nodding. I do not think that he is suggesting using order-making powers to make a big change but saying that we should use those order-making powers to put the legislation back to what we all thought it was before the justices in the Supreme Court made their decision last July.
Chloe Smith
I thank my right hon. Friend. As he says, he has stood at the Dispatch Box in this role, and he, too, will have grappled with the intricacies of the RPA, the PPERA, and more besides. I understand his point, which I would answer by way of an example. Only tonight, I have just come from leading a statutory instrument debate on a further election expenses order. I am a very lucky Minister. I have had the opportunity to be part of three of four election-related debates in only one day. That measure was perhaps a more straightforward example of candidates’ electoral spending limits. We therefore have, at this very moment, some very practical examples before the House of what I would suggest is the right use of that order-making power. That was a different order of thing, I would suggest to my right hon. Friend, than even the way that he characterises this proposed change. We do need to consider whether such a thing should be done by ordermaking or in primary legislation. Whatever the genesis of the problem—whether it came from the Supreme Court or from a different source—it is right that we give it that consideration.
Mr Harper
Can I just check the Government’s position on this? I know what the view of my hon. Friend the Member for South Thanet is—that the position was clear before last year and the Supreme Court’s decision in July changed the understanding of the position. Is it the Government’s understanding that before the Supreme Court’s decision, the law was clear, as my hon. Friend set it out, and then the Supreme Court changed everyone’s interpretation of it? In other words, do the Government think that there is something that we need to fix, or do they think that the Supreme Court just set out what everyone thought the law was and therefore we do not need to do anything to fix it?
Chloe Smith
I think it is fair to say that the Government certainly recognise that the position has been brought into a lack of clarity. The net position right now is that candidates and agents may well be seeking a clearer understanding, and so the question is how to help to provide that. I will come on to ways of doing so.
I want to turn briefly to the arguments put by my hon. Friend the Member for South Thanet about how party and candidate spending rules interact. He is arguing, quite understandably, that the law in this area requires reform as well—again, due to a lack of clarity. The Supreme Court itself acknowledges that separating local from national expenditure can sometimes be a difficult exercise. Certainly, the Government’s view, absolutely, is that ensuring that the electoral framework is well understood and operates effectively is important for all of us. One piece of work that is going on is that since 2017 the Electoral Commission has produced a series of updated non-statutory guidance documents on electoral spending for political parties, candidates and third-party campaigners for parliamentary general elections, local government elections, and other elections. That includes specific guidance on managing spending returns and others.
In addition, the Electoral Commission has been working on new statutory codes of practice for registered political parties and candidates. Those are intended to add clarity and give examples of how the law applies to different kinds of electoral spending. I will make a few points on the codes, which I hope will be helpful, and then on what the Government will do.
The code for candidates clarifies the qualifying expenses for candidates that must be declared in a candidate’s spending return and candidate expenses that are exempted. It provides guidance on the cases or circumstances in which expenses are regarded as incurred for the purposes of a candidate’s election. The code also seeks to provide clarity on notional expenditure, which has been discussed at length tonight.
The code for parties similarly clarifies the qualifying expenses that must be declared in a party’s spending return and includes general principles on all campaign expenditure incurred and on expenses that are excluded. As well as guidance and codes, legislative change is always an option to reform electoral law, and we should look at that carefully.
Mr Harper
I am grateful to the Minister for being so generous in taking interventions. Can she set out for the House how the position outlined by my hon. Friend the Member for South Thanet is treated? In other words, if a third party decides to be helpful and spends a candidate’s money on their behalf without their authorisation, how does the code of conduct say that that should be accounted for, in her understanding of the law? The way that my hon. Friend set it out was quite worrying.
Chloe Smith
I am not in a position to set that out on the Electoral Commission’s behalf, because it ought to speak for itself. I do not intend that to be a weaselly get-out, but these codes are the work of the Electoral Commission, and it is for the Electoral Commission to hear these concerns, respond to them accordingly and, in due course, lay the codes before the Commons, and I will come back to that.
Andrew Bridgen
We are not accusing the Minister of any weaselly get-out, but she and the Electoral Commission have to understand that there will be no weaselly get-out for any of us if we find ourselves in this situation without clarity on election law. This is a very worrying situation.
Chloe Smith
I quite agree, and I hope that that has been clear from the words I have used and repeated tonight. It is in all our interests—I say that in the widest possible sense of the democracy of which we all have the privilege and honour of being part—that these rules are clear. I simply meant that I am not in a position to answer in detail the question asked by my right hon. Friend the Member for Forest of Dean (Mr Harper) about paragraph x, y or z of the code, because that information is available to the House from a different source, and the House should scrutinise that for itself.
Craig Mackinlay
As I said in my speech, we have three bits of guidance: the 2015 guidance for general election candidates; the 2017 guidance, refreshed for the general election; and now the 2019 guidance for local election candidates. The Supreme Court judgment came before the publication of the 2019 rules. My right hon. Friend the Member for Forest of Dean asked a clear question: what was the intent? Was the intent of Parliament where we once were and what we all understood, or was it what the Supreme Court has finally come up with? If the Electoral Commission is so keen on what the Supreme Court came up with, why has it not put that in its latest 2019 guidance for local candidates? That is the reason I am trying to put the pitch back to what we have all understood for many years—from 1868 onwards—by a simple three-and-a-half-line statutory instrument. I recommend that this be given the most urgent consideration.
Chloe Smith
My hon. Friend reiterates a number of important points. He is right that this requires urgent consideration, and I have confirmed that the Government are looking at the position and want to help ensure that there is clarity. In this House, we are legislators; we are responsible for looking at the law and whether it is clear. As to the regulator’s responsibility to provide usable guidance promptly, I observe again that the Electoral Commission is separately accountable to the House. There have been questions tonight from my hon. Friend and others that the House will wish to satisfy itself of for its oversight of the Electoral Commission, which, as you know, Mr Deputy Speaker, is through the Speaker’s Committee. I encourage Members to direct some of their questions to that source. That is the right thing to do.
What I can talk about is the Government’s next steps, so let me add something in relation to the codes of practice that I have mentioned. First, the commission concluded its public consultation on them in December 2018, and Ministers will review those draft codes before they are put to Parliament. Again, I emphasise that because that is the right and proper opportunity for the Government to contribute their part, but also for this Parliament to do so. The commission aims to have them approved by Parliament in time for elections in 2021. The Government will continue to work with the Electoral Commission on the statutory codes of practice, because we recognise the importance of having clear and accessible codes to provide further clarity on electoral spending.
Alex Chalk
There can be no doubt but that the Minister is attending to these matters with her customary diligence. Does she agree with me, however, that we can have endless codes of conduct, but that will not address the potential mischief? The situation is that somebody who is being mischievous could in effect sabotage a candidate’s campaign by flying an aeroplane towing a banner at great expense, and that may render the individual liable to conviction, punishment and disgrace. No code of conduct is going to solve that, is it?
Chloe Smith
Yes, in short, I do recognise the example given, and I am very grateful to my hon. Friend for expounding it. I am also grateful to my hon. Friend the Member for South Thanet, who added other compelling examples, whether about leaflets or in relation to other hostile actors seeking to do such harm. I understand those concerns, and I am glad they have been laid out clearly in examples tonight.
Mr Harper
The Minister is being generous in giving way. I want to pick up a point she made about the code of conduct. She talked about clarity, but from listening carefully to my hon. Friend the Member for South Thanet, I think that while part of the problem is about clarity, post the Supreme Court’s decision, the issue is not really clarity. The law is clear, because of the Supreme Court’s judgment, but the problem is that the law, as the Supreme Court set out, is not a good outcome because it allows others to cause mischief. This is not about making the law clear; it is about changing the law back to what we all thought it was in the first place, and only we in this Parliament can do that.
Chloe Smith
Yes, and this brings me neatly to the concluding part of my remarks. This is precisely the piece that we in the House and the Government would seek to consider, which is whether we should change the law to provide such clarity. The argument has been put very well tonight that there is a lack of clarity. That has been exemplified and expanded on, and the question remains about the consideration of that judgment and its implications for the law on notional expenditure for electoral candidates.
It is right that we continue to talk to the political parties to understand the implications for future campaigns and to consider potential solutions. Indeed, the Government proactively put this forward as a topic of discussion at the parliamentary parties panel, which we use to consult on these issues, last December. As I mentioned earlier, I will be meeting representatives from across the parties as soon as tomorrow to discuss their views.
Mr Lord
I thank the Minister, on behalf of colleagues, for those assurances. Given the importance of this matter, could she give us some sort of timeline? There are different ways to get this new understanding sorted out and on to the statute book, but whichever way her Department chooses, may we at least have a timeline so that this important matter is sorted out once and for all?
Chloe Smith
I would like to be able to do so, but I am not in a position to do so. My hon. Friends in the Whips Office will have heard that request, and they may in turn be able to advise me about what may be manageable in the forthcoming parliamentary business. However, I intend to continue considering the matter carefully, as I hope that I have outlined, because we need a better understanding of a few related complexities. For example, were we to make the change, how would we avoid the possibility of further abuses being committed between categories? Proper consideration needs to be given to such a change and to which power could be used to do that, as I said earlier. I give the House a commitment that I will continue to consider those important aspects with Cabinet Office officials.
Jim Shannon
On that point, I think that the thrust of what hon. Members have put forward tonight is the need for clarification. They also referred to the upcoming council elections in May. Many of us are seeking that clarification before May, so can the Minister give some indication of what will happen?
Chloe Smith
I thank the hon. Gentleman for that intervention and, indeed, for his earlier expression of support for improving the integrity of all elections through the use of voter ID at polling stations. I have set out tonight a number of the tools being used to try to give that clarity: the guidance from the Electoral Commission, the work on the codes and the question of legislative reform. As he will have just heard, I am unable to commit to a clear date for legislative reform tonight, because our considerations need to continue, but I hope that some elements of the existing guidance may still be helpful to all candidates and agents, not just those of us in this Chamber, in the upcoming local elections.
Let me come to a conclusion. It is also important that we have cross-party consensus on any legislative options, because these matters, which apply to our entire democratic framework, ought to be above mere party politics. We would require that consensus before we could proceed with a legislative option. I thank my hon. Friend the Member for South Thanet again for raising this important matter. As he and I have set out, these rules exist for a good reason: they create a level playing field by ensuring that all associated candidate and party costs are accounted for within electoral spending limits, and they prevent the misuse of electoral spending. The Government will continue to work with the regulator to ensure that there is clear guidance on electoral spending, including through the codes of practice to which I referred. We will continue to consider the implications of the Supreme Court judgment, with a view to protecting those important principles that underpin our democratic framework, which include fairness to candidates and agents and of course the concept of a level playing field, which has been well articulated tonight.
Question put and agreed to.