Political Donations: Cap

Debate between Lord Rennard and Lord Khan of Burnley

Thursday 5th December 2024 Lords Chamber

[Lord Rennard]

To ask His Majesty’s Government what plans they have to cap donations to political parties.

[The Parliamentary Under-Secretary of State, Ministry of Housing, Communities and Local Government (Lord Khan of Burnley) (Lab)]

My Lords, the Government have committed to reforming political finance rules. We are considering changes that will help protect our system from foreign interference, such as tighter controls on donations. For example, the Electoral Commission has pointed to a need to consider the rules on company donations. Details of these proposals will be brought forward in due course.

[Lord Rennard (LD)]

My Lords, people are absolutely astonished when they discover that there is absolutely no limit whatsoever to how much money can be given by one individual to a political party. This week, Transparency International has produced analysis showing how dark money from dodgy sources can infect British politics, and Unlock Democracy has produced an excellent Democratic Integrity white paper. Will the Minister undertake to ensure that his department properly considers these reports? Is it not high time that the Government accepted the recommendation of the Committee on Standards in Public Life that there should be a £10,000 maximum cap on the sum any individual can give to a party?

[Lord Khan of Burnley (Lab)]

My Lords, let me first address the noble Lord’s question about reports, in particular that of Transparency International. The Government are committed to safeguarding the integrity of our democratic processes and, as I am making clear today, we will be taking steps to strengthen protections against foreign interference in our elections. We are seeking and remain open to evidence from stakeholders, particularly on threats to our democracy. Our primary concern is reducing the threat of foreign interference.

Political parties play a vital role in our democracy, and it is important that they be able to fundraise effectively and communicate with the electorate. My department is currently developing proposals to give effect to these commitments. We are engaging with key stakeholders such as the Electoral Commission and the Committee on Standards, and we will update the House in due course.

Voter Registration and Participation

Debate between Lord Rennard and Lord Khan of Burnley

Thursday 14th November 2024 Lords Chamber

[Lord Khan of Burnley (Lab)]

I thank the noble Baroness for making the point about the addition of the Armed Forces veteran card to the list of accepted documents for voter ID. On her very direct question, yes—it is in our manifesto.

[Lord Rennard (LD)]

My Lords, only 65% of 18 to 25 year-olds are registered to vote, compared with more than 95% of the over-65s. Will the Government now act urgently on the unanimous cross-party recommendation of this House’s Select Committee on electoral administration in 2013, and begin the process of automatically registering young people to vote when they are issued with their national insurance numbers and the DWP has checked on their nationality?

[Lord Khan of Burnley (Lab)]

My Lords, the noble Lord makes an interesting point and I have had the great pleasure of working with him on various SIs and, in particular, on the Elections Act 2022. The Government will explore all options to ensure that we increase voter participation. We believe that, by building a strong foundation of democratic participation among young people, we will establish voting habits that continue as they grow older. It is about delivering long-lasting, positive consequences for our democracy and building an informed and engaged electorate for the future. In the meantime, we are working on these issues and will bring proposals to the House.

Representation of the People (England and Wales and Northern Ireland) (Amendment) Regulations 2024

Debate between Lord Rennard and Lord Khan of Burnley

Monday 13th May 2024 Grand Committee

[Lord Rennard (LD)]

My Lords, the noble Lord, Lord Hayward, has once again demonstrated the essential truth of one of his major campaign pledges during the 1993 Christchurch by-election—that he would be very good at scrutinising secondary legislation. It is always a pleasure to work with him on such matters.

I am tempted to ask the Minister how often the Government have had to bring forward measures such as this, as a tidying-up and housekeeping exercise, since the Elections Act of 2022 became law. I will resist. However, the current measure is one of numerous examples of the Government appearing not quite to understand what they were doing in seeking to implement a Brexit deal which lacked details when it was agreed.

In considering what is before us today, the Shadow Minister in the House of Commons, Florence Eshalomi, explained that understanding this measure required understanding five or six different Acts and regulations spanning over 40 years of legislation. To correct the noble Lord, Lord Hayward, it was in answer to a Question of mine in this place some time ago that it was revealed that at that stage there had been 16 statutory instruments involved in implementing the Elections Act 2022, running to 803 pages, all of which have been added to since then by one, two or three further statutory instruments. This is simply the latest of them. The scale of the statutory instruments required by the Elections Act has presented a significant problem, not just for Ministers but particularly for those responsible for the conduct of our elections. I believe that the burden may have become intolerable and the risk of mistakes in the conduct of our elections has been increased significantly by this complexity.



First, can the Minister update us on government thinking about what we are all asking for—the proper consolidation of all our election laws, as recommended by the Law Commission, which has done much work on this subject?

Secondly, does the Minister accept that the Government’s explanation of the difference in voting rights between EU citizens from Ireland, Cyprus and Malta and those from the 19 EU countries with which we do not have voting and candidacy treaties is an anomaly that requires a fundamental review of the franchises for all our UK elections? In particular, does she accept that the principle of residency would be a good basis for the local election franchise, as those who pay for and receive services from local government should be able to vote for the people in charge of those local authorities? The principle of no taxation without representation is a good one. The Government seem obsessed with removing people from the electoral rolls, making it unnecessarily hard to register and then harder to vote if you are among the categories of people without acceptable photo ID from the very tightly drawn list.

Thirdly, what steps will the Government take to ensure that the different levels of voting rights applying to different EU citizens will be explained to them all?

Finally, what progress is being made with the 19 EU member states with which we do not have treaties concerning voting and candidacy rights to agree such treaties, bringing EU citizens in those countries into line with those from Spain, Portugal, Luxembourg, Poland and Denmark?

That said, the measure has our support as it provides some clarification and corrects mistakes that were inadvertently made.

[Lord Khan of Burnley (Lab)]

My Lords, the fact that we are here yet again emphasises the enormity and complexity of the Elections Act and electoral statute. I echo the comments by the noble Lord, Lord Hayward, supported by my noble friend Lord Stansgate, about consolidation of all electoral legislation. As the noble Lord, Lord Wallace, indicated in a meeting with the chief executive of the Electoral Commission, there are 1,100 pages of SIs as a result of the Elections Act. We should never have to come to that situation again.

It is critical that our electoral law is as legible and transparent as possible, not only for the health of democracy but, as I have repeated to the Minister previously, for the workload of our understaffed electoral teams, which are tasked with keeping the integrity of our elections intact. Mistakes in legislation in this area make that challenge even harder. They could create confusion and concern among dual nationals who are entitled to vote, by not only collecting unnecessary information from those looking to register but increasing the workload of electoral officers, who already have to tidy up databases and deal with queries from so many different members of the public who are confused as to why this question is being asked in the first instance. Unfortunately, rather than helping our electoral administrators, the Government have introduced an Elections Act that significantly increases the load on them.

This is the second correction the department has had to make following the Elections Act. Given that the consequences of these mistakes could potentially change the franchise, what steps is the department taking to proactively review that the legislation is working as intended so that no other potential consequences are being missed? I would be grateful if the Minister could outline what support is being provided to electoral officers to carry out the amendment to the franchise for EU nationals. What steps are the Government taking to ensure that there are no mistakes in the system? What is the Minister’s response to the report on voter registration from the Levelling Up, Housing and Communities Committee, which highlighted a creaking system without any efficiency and with the huge challenges presented by the Elections Act? I would welcome her thoughts on that.

I recognise the point made by the noble Baroness, Lady Bennett of Manor Castle, that this is a complicated area of law; we appreciate that. In summary, we support this draft statutory instrument, but I would welcome reassurance from the Minister on the points I raised and those eloquently raised by noble Lords across the Committee. I look forward to her response.

[Baroness Scott of Bybrook (Con)]

I thank noble Lords for their contributions today. I will go through a few of the issues that were brought up.

First, the noble Lord, Lord Hayward, is absolutely right: the instruments in this amending SI had no effect on the elections held on 2 May. The changes to the franchise for EU citizens came into force on 7 May; that date was chosen specifically so that there would be no impact on the May local elections.

We have heard quite a lot about consolidation, as we did when the Elections Bill, which is now an Act, was going through. I think that will be for subsequent Governments to look at. This is complex; there are huge numbers of pieces of legislation impacting on top of each other within the elections arena. As the noble Viscount, Lord Stansgate, and the noble Lords, Lord Rennard and Lord Khan of Burnley, brought up, that is something which will have to be done by subsequent Governments.

The noble Baroness, Lady Bennett, brought up the numbers affected. I do not know those numbers, but I will have a look and write to her. On the oversight occurring in the first place, as I said, I apologise—but it is recognised that, even with stringent checks in quite complex pieces of legislation such as this, there is always a chance of unintentional errors. Regrettably, sometimes they are overlooked and, unfortunately, this is one such case, but the main thing is that we are dealing with it now.

On the issues around differences in voting rights for residency, this instrument is focused on amending a definition in existing regulations. Those regulations have already been passed in Parliament—as I say, they came into force on 7 May—and there are no further plans to revise any of them. I remember well the debates held on the changes being introduced by those regulations, and this is not the time to go over them again. It is certainly not the time at this early stage, when the regulations have only just gone into law, to put forward further revisions.

The Electoral Commission will keep an eye on all these issues as they are put into place, as will the department. Of course, if there are any issues or problems, we will keep an eye on that. That was a point raised by the noble Lord, Lord Khan of Burnley. It is important that we keep a close eye on any changes, particularly to electoral legislation, as it is complex. If anybody who wants to register to vote goes on to the Electoral Commission’s website, all the details are on there—and people do that. Also, our wonderful election officers in our local authorities are usually the first contact that people have. Even if they are complex voters, all the information will be given to them by our local authorities as well, which is important.

I think that is everything I had to answer. I know that the House believes that ensuring the smooth running of our democratic processes is of paramount importance. This amendment is therefore important, and I thank noble Lords for supporting the instrument to get this right. I commend it the Committee.

Representation of the People (Postal and Proxy Voting etc.) (Amendment) Regulations 2024

Debate between Lord Rennard and Lord Khan of Burnley

Tuesday 23rd January 2024 Grand Committee

[Lord Rennard (LD)]

My Lords, the Minister need not fear that I will ask any particularly difficult, tricky or awkward questions on this legislation. There is a simple explanation for that: I could not think of any. I looked at the proceedings in Committee in the other place, and nor could anyone there, so I will confine my remarks simply to a question and an observation. The observation is that we seem to have had a lot of changes to election law in the year before a general election. Does the Minister accept that there may be a greater risk of an error in the conduct of our elections as a result of the large number of changes to election law being made in the year before a general election, and with local elections in May? Could she tell us—perhaps she will write to us in due course—how many pages of legislation are in the secondary legislation instruments brought before us in the last 12 months? It seems a lot of pages.

[Lord Khan of Burnley (Lab)]

My Lords, I thank the Minister for introducing this statutory instrument. It corrects very minor errors in a previous statutory instrument. We are pleased that the Government are correcting the errors and understand why this instrument must be introduced. The Minister outlined the huge task as a result of the changes made in the Elections Act. I have sympathy with her in the task of introducing so many complex changes in electoral statutes. If there are other mistakes in the Elections Act that the Government want to rectify, we are happy to support them.

I have a few questions for the Minister. Is the department now examining instruments relating to the Elections Act to ensure that all other transitional arrangements are correct? Do the Government plan to lay any further regulations relating to the Elections Act prior to the elections in May? Has the Minister discussed the regulations with those responsible for implementing them?

Another concern on these Benches is that we have already stretched electoral administrators up and down the country, who are getting their heads around the changes that the Government are making, sometimes rectifying errors. This is deeply concerning. Will those electoral officers be further resourced? How will they be strengthened to deal with the impacts and changes that have been outlined today? The noble Lord, Lord Rennard, spoke about this. I look forward to the Minister’s response.

Representation of the People (Overseas Electors etc.) (Amendment) Regulations 2023

Debate between Lord Rennard and Lord Khan of Burnley

Tuesday 12th December 2023 Lords Chamber

[Lord Khan of Burnley (Lab)]

My Lords, I thank the Minister for her introduction. These regulations implement the provisions of the Elections Act to remove restrictions on overseas electors. Overseas voting provides an important link for British citizens across the world. On these Benches, we are clear that those who have a strong connection to this country and their community should still have a say in how they are run. We do not oppose the principle of overseas voting and giving citizens who still have a strong connection to the UK a voice in our elections. That includes people who still have a strong connection to our local services and communities. But we need to consider this carefully and look at the potential impact on our democracy.

By repealing the 15-year residency limit, former residents who are now living abroad will be able to vote regardless of how long ago they left the UK. I am proud to have represented the community and region I grew up in as a Member of the European Parliament. Like many honourable Members in the other place, I know how important it is that those who live in our area, pay their taxes and are part of the community feel represented. As much as we support the rights of overseas voters, it would be wrong if people with little connection to this country—who may have moved a long time ago and not used any services or paid any taxes in decades—diminished the voices of constituents across the United Kingdom. We must consider how we strike a balance in our rules. There are voters who still feel a connection to the UK despite moving away 30, 40 or more years ago. But the policy of removing the cap on this important principle will undermine the balance between enfranchising those people and maintaining integrity in our democracy.

Although we do not think that there is a moral disagreement about some of the issues with votes for life, I fear that the risk of abuse of the system proposed by the Government is far too great. The registration rules proposed mean that some overseas voters require only the attestation of the identity and past location of another overseas voter. We understand that it may be difficult for legitimate overseas voters to verify their identity, but there seems to be a risk of manipulation of the system to allow those eligible for the scheme to have their pick of which seats they want to vote in.

As Florence Eshalomi MP outlined in the other place, some 30 seats were decided by fewer than 1,000 votes at the last general election. While I am sure that very few will attempt to abuse the system in that way, it could have a large impact on marginal seats when votes are added up around the world. Can the Minister assure me that there will be additional safeguards to prevent fraud? I understand that there is a tight limit on attestation and that those attesting for another voter will need to sign a declaration of their truthfulness, which is right—but those measures may not be enough to prevent people trying to abuse the system in a way that could impact the next general election.

Can the Minister stipulate what robust processes will be in place to verify an applicant’s identity and establish their eligibility to register at their qualifying United Kingdom address? What support are the Government putting in place to enable electoral registration officers in Great Britain and the Chief Electoral Officer for Northern Ireland to determine their eligibility under these new criteria? The Government should also be more open about how much this change will cost, given that they confirmed to the Secondary Legislation Scrutiny Committee that there will be additional funding to cover the costs of registering new electors.

The new rules create a huge loophole in our donation laws. The current rules on UK donations mean that those who donate more than £500 must be on the electoral register. We must be honest and say that we cannot pretend that the current system is perfect, but it is an important safeguard against money flooding into our political system from foreign and hostile states. The Labour Front Bench first raised these concerns during the passage of the Elections Act, when my noble friend Lady Hayman of Ullock pointed out that the removal of the 15-year limit could create a loophole in donation law.

Furthermore, during debates on the National Security Bill, my noble friend Lord Coaker called for greater restrictions on political donations from overseas. In our current system, those on the register have a clear and recent link to the UK. We think that opening the electoral register as widely as the Government are doing today goes far beyond what our current donation rules were set up to do. It will allow those with tenuous links to the UK, who have spent most of their lives in states that may even be openly hostile to our aims, the right to massively influence our system. The reality is that it will be impossible to ensure that the huge numbers of potential donors in our system are not vulnerable to manipulation by hostile actors. There is already clear evidence of attempts by these actors to influence UK democracy, as we have seen in recent days. It will also make enforcement of our rules much harder, given the difficulties that we may face in challenging those who fall foul of donation laws while living in another jurisdiction. The Government know the risks that those hostile actors pose to the UK and our allies. Just this year, we saw the attack on Britain’s Electoral Commission. Has the Minister met with it following this incident?

This Government should instead look to proposals made by the Electoral Commission, which recommended introducing new duties on parties to enhance due diligence and the risk assessment of donations. Louise Edwards, a director at the Electoral Commission, recently commented that the current levels of transparency around donations are “not enough”. The Electoral Commission has called for more laws to help protect parties from those who seek to evade the law, as well as more checks on the identity of donors. It is beyond belief that the Government are seeking to risk opening our system at such a critical time for our world. What would a political party do if, for instance, it were offered a donation of £50,000 by somebody who lives and works in Moscow today? Will the Government introduce a new requirement on political parties to do proper checks on the source of funds?

Changes to the Electoral Commission’s powers under the Elections Act 2022 have left the UK without any body responsible for criminal enforcement of election finance laws. I particularly press the Minister on the fact that no one agency now has enforcement powers over electoral law. Do the Government consider it appropriate for the National Crime Agency to take these powers? If so, will they implement that without further delay? If not, is a department fulfilling this role?

I know that there are British citizens who still feel a connection to the UK, and they will welcome this rule change, but it will also be welcomed by those who want to undermine our democracy and funnel money into our politics. We must not allow that to happen. We must strike the right balance to empower voters without enabling undue influence, but I am afraid that these regulations go nowhere near far enough to do that. Unfortunately, the Government have refused to implement any effective safeguards and have instead brought forward these regulations. I further probe the Minister on how the Government propose to monitor the impact of these new rules. Will they publish regular reviews or statements on the number of new overseas voters? If so, will this include how many have used the attestation route to register? How will we get notified of the number and value of donations made by overseas voters?

The ability to make political donations is dependent on the right to vote, so the change would allow substantially more overseas donations, particularly where the attestation of identity is open to more abuse. We express concern that the changes could dangerously weaken the restrictions on overseas political donations and allow foreign money to enter British democracy. We have therefore tabled this amendment to register our concerns, as this entirely unnecessary risk creates problems for our elections and our democracy. At a time of global instability and significant evidence of hostile states seeking to interfere in UK politics, as well as a lack of public confidence in our political institutions, now is the time to enhance our safeguards, not dismantle them. I hope the noble Baroness, Lady Penn, and the department will think again, and that all noble Lords will support our amendment to the Motion today. I beg to move.

[Lord Rennard (LD)]

My Lords, there are real concerns about these measures. They include the security of our electoral processes, the risk of undermining confidence in them and, above all, our elections being bought by dark money and illegitimate foreign interference. That is why we support the amendment in the name of the noble Lord, Lord Khan of Burnley.

All parties agree on the principle of UK citizens living overseas being able to vote for representatives in our Parliament, but these statutory instruments do not do much to help them. In the absence of a fixed-term Parliament, there is a very short timescale in our system for conducting a general election. It is really too short to enable many people living overseas to be able to return postal votes. We could have better addressed the issue of UK citizens living overseas through the creation of overseas constituencies, dedicated to representing their interests. They do this in many other countries, including France, Italy and Portugal. Countries such as the US and Australia allow a longer period, of up to a fortnight after polling stations have closed, for postal votes to be returned, enabling many more of their citizens living overseas to participate in their elections. When I raised such issues during the passage of the Elections Bill, the Government lacked interest. This failure means, for example, that members of our Armed Forces serving overseas, or British diplomats working in our embassies, will often remain unable to cast their votes in general elections.

What the Government are interested in is allowing many more donations to come from abroad, without any organisation in this country having any real capacity to verify the original sources of those donations. The absence of any cap on the size of donations will no doubt encourage more donations of, say, £5 million-plus to come from people whose real interests are not in this country. Why should a billionaire tax exile be able to fund a political party in the UK, and who knows where their money really comes from? The Government have clipped the wings of the previously independent Electoral Commission and made criminal enforcement of election finance laws significantly harder. I wonder why. I think perhaps we should be told.

Political parties themselves have very little capacity to scrutinise overseas bank accounts, or to inspect the accounts of companies operating overseas, even if they want to. Earlier this year, the Government rejected an amendment to the then National Security Bill which would have insisted on greater scrutiny of the original sources of donations to parties. I wonder why. The chair of the Intelligence and Security Committee, Julian Lewis, supported such an amendment, saying that

“the UK has clearly welcomed Russian money, including in the political sphere … We must protect against covert, foreign state-backed financial donations if we are to defend our democratic institutions from harmful interference and influence”.—[Official Report, Commons, 3/5/23; col. 132.]

But this Government did not want our democracy to have that protection. I wonder why. I think perhaps we should be told.

Elections Bill

Debate between Lord Rennard and Lord Khan of Burnley

Lords Hansard - Part 2 & Report stage
Wednesday 6th April 2022 Lords Chamber

[Lord Rennard (LD)]

My Lords, the noble Viscount, Lord Stansgate, of course has a very interesting family history on this subject. I might perhaps suggest that his view is not quite correct. I think that if he was granted the right to vote, he would still have the right to resign from this House and stand as a candidate. Indeed, my noble friend Lord Thurso was once a Member of this House, then left this House, stood for election to Parliament and was elected as an MP. Then he lost his seat as an MP and came back to this House after a by-election of hereditary Peers. So the issue is not quite so simple.

We are talking about 800 people being added to an electoral register of 47 million, so I say to the Government that they should not have too much to fear from those 800 people being added, especially as quite a few of the 800 might vote for their party. I also say to the noble Lord, Lord Dubs, that there are only a number of issues which we can really send back to the elected MPs. I personally think that issues such as the 6 million to 9 million people not on the register or incorrectly registered are much more important than 800 Peers and we may subject ourselves to some ridicule in the other place if we are seen to be prioritising our votes as Peers in a general election. If it happens and the Government accede, I will not be unhappy—I would quite like to have a say in electing somebody who will have a vote on budgetary matters and who might become the Prime Minister—but it is not an issue that I would personally want to press to a vote on this occasion, because I think there are more important priorities, particularly for this House at this stage of the Bill.

[Lord Khan of Burnley (Lab)]

My Lords, I shall speak very briefly to Amendment 42. First, I have huge admiration for my noble friend Lord Dubs and the noble Lord, Lord Naseby, and I recognise the history of campaigning on these issues. A lot of interesting points have been made this evening, but given the hour, I just want to say that I am grateful to my noble friend Lord Stansgate for providing his context and family experience. I agree with what the noble Lord, Lord Rennard, says. This is a very interesting debate and I look forward to the Minister’s response.