Elections Bill

Lord Wallace of Saltaire Excerpts

Lords Hansard - Part 1 & Committee stage
Tuesday 15th March 2022 Lords Chamber

[Lord Sentamu (CB)]

My Lords, I share the sentiment of what the noble Lord, Lord Grocott, has just said. The noble Lord, Lord Collins, is right to seek clarification of what “encouraged” means. However, why is the role given to the Secretary of State, and not the legislation itself, to define it? If we cannot define it, kick it out. Why should this responsibility be given to the Secretary of State, who “must by regulations define” what it means? It is a bit late in the day for that.

I also share the concern of the noble Lord, Lord Stunell, about how courts will define what “encouraged” means. I have a problem with it being defined by the Secretary of State “by regulations”. I am one of those who is always very suspicious of legislation, in a secondary way, allowing regulations to grow like Topsy as has been the case over the last so many years. The legislators are allowing it to go ahead. I would have thought that the Bill itself should define what it is. If it cannot define it, do not put it in.

After listening to noble Lords who defined what election agents do and their enthusiasm for the things that they do, I am glad that I could never be such a person, because I do not think that I am worthy of it.

I ask the Minister—because the Government have drafted the legislation and put it into the Bill—to explain to us what he means by “encouraged”. Will it stand up to the standards of the law courts? If it cannot, why is it not just taken out?

[Lord Wallace of Saltaire (LD)]

My Lords, I am often grateful I was never an election agent. I fought five elections and was once approached and asked if I would work as an agent for an early election. I am eternally grateful that I did not accept, because I did not begin to understand the complications and responsibilities of the task then. I have learned some of them since, but life has got a great deal more complicated over the last 50 or 60 years as the technology of elections and the power of the national parties, compared with the local parties, have shifted quite radically.

When I read this clause, I was struck by the word “only”, which appears repeatedly. That was the word I wanted to challenge. For example, it says that

“facilities are made use of on behalf of a candidate only if their use on behalf of the candidate is directed”.

Why does “only” keep recurring in various different contexts? It is clearly intended to weaken the possibility that the candidate could, in any way, be regarded as responsible. That worries me. Any good lawyer would be able to unpick the candidate being responsible under most circumstances for what the national party had done within his or her constituency. We well know, from the case to which this clause relates, that the national parties as a whole have come to engage in specific constituencies to target them and to spend a great deal of money from the national level in them. I suspect that candidates are always aware of this, but they may not always have wished to encourage it.

[Lord True (Con)]

My Lords, I am grateful for this short debate. I will not enter into the discussions of election experiences, but I certainly agree with the noble Lord, Lord Grocott, that it is not always easy to find election agents. Anyone who has been involved in politics is mindful of the difficulties which sometimes arise in the course of elections.

What we are seeking to do in Clause 18—I will come on to “encouraged”, which has been suggested goes in the opposite direction—is to clarify the law on notional expenditure. A debate on Clause 18 stand part will follow this debate and it is probably the appropriate place for this. It makes it clear that candidates need to report only benefits in kind: property, goods, services and facilities provided for the use or benefit of a candidate at a discount or free which the candidate has used or which the candidate or their election agent has directed, authorised or encouraged someone else to use on their behalf.

This brings me to the amendment in the name of the noble Lord, Lord Collins. I say to the noble and right reverend Lord that I do not think that he is suggesting that the Secretary of State should draft regulations. I accept that this is a probing amendment; it is not a proposition that the Government have put on the Marshalled List. The noble Lord is seeking clarification of the term “encouraged”. The wording in the Bill was chosen to cover as many scenarios as possible and to capture circumstances where the candidate or their agent encouraged a particular use of property, goods, services or facilities, without going as far as directing it or specifically authorising its use. There is an area of uncertainty here, as he acknowledged. However, if only formal authorisation is required, the risk is that the candidate could encourage someone to use a benefit in kind without having to not report it as they did not give authorisation for it to be used. Requiring further regulations to define this term would risk reducing the breadth of the scope of these new rules on notional expenditure and opening up potential loopholes that we are seeking to address. The language in this clause has been crafted to strike a balance between the status quo, where no form of authorisation is required, which has generated understandable concerns from candidates and agents, and the overly blunt alternative of formal authorisation, which could risk being circumvented in practice, as the noble Lord suggested.

This clarification of the law on notional spending is vital to ensure that candidates should not fear being responsible for benefits in kind of which they had no knowledge. I think we would agree with that; the Explanatory Notes say that. Encouragement in the context in which we understand it and in this Bill must be a positive act. It is not intended to capture situations where a candidate did not have knowledge of someone using a benefit in kind on their behalf.

As I said at the outset, as an experienced campaigner I acknowledge that it is not always easy readily to apply the rules on election spending practically to the day-to-day reality of a campaign. We will discuss guidance in greater detail later today, but I assure the Committee that we intend that the Electoral Commission will produce guidance for campaigners to help them understand specifically these concepts and to apply and comply with the rules on notional spending in so doing. In the past, the commission has made good use of illustrative examples to aid campaigners. Further to this, we are broadening the scope of the statutory codes of practice on election spending that can be prepared by the commission to ensure that the codes include guidance on notional spending.

Some Members of the Committee asked for some specific comments on legal meanings or for further detail on “encouraged”. We expect that this guidance and the codes of practice will come forward from not the Secretary of State but the Electoral Commission. I understand where the noble Lord is coming from and will reflect on what has been said, and if I can I will put further clarification to him in writing and submit it to the House before Report, because I appreciate the direction he is coming from.

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[Lord Grocott (Lab)]

My Lords, a kind of fiction has prevailed over a very long period of election history that, somehow or other, the crucial electoral battleground is each individual constituency. It has long been recognised that there is a need for strict limits on expenditure by individual candidates in individual constituencies. On the other level, however, there is the national campaign, where limits on expenditure are so much looser.

I was very alarmed, as I had not heard it before, by the information from the noble Lord, Lord Rennard—he is usually reliable on these issues—that there is possibly a huge increase planned in the maximum expenditure allowed at the national level. This may not be a popular thing to say to candidates—I may be talking to myself—but it is clear to me that, although both levels of campaigning expenditure are clearly important, if you had to label the one that is the most important in determining the overall outcome of modern elections, it would be the national expenditure and national campaign. All candidates believe profoundly that it is what they do in their individual constituencies that is of crucial importance.

I have also noticed that all candidates—I have been one of them—tend to think that, when they win their local campaign, it is down to a particular level of skill and expertise in their campaign, and when they lose, it is generally someone else’s fault. The truth at general elections is that, for all the variance you can get in 650 different constituencies, the broad truth prevails: when the tide is out for your party, the tide is likely to be out everywhere, and vice versa. This whole issue of the balance between control over national expenditure and control over local expenditure is fundamental.

Of course, the irony is that, for years and years, there was control over local expenditure. It has long been recognised that there must be limits locally. However, it is relatively recently in our parliamentary history that we have seen the need for national limits; as we have said, they are so loose now as to be barely limits at all—certainly for one party in particular. This is a crucial area of debate and discussion but, most of all, the one headline I want to get out of this—perhaps the Minister will address it when he replies because he is on the inside track and we are not—is whether there really is a proposal that there should be a colossal increase in the level of expenditure allowed at the national level by political parties. If the Minister has any inside information on this, I would love him to share it with the Committee.

[Lord Wallace of Saltaire (LD)]

My Lords, one of the things on which there was consensus from all the various reports that fed into this Bill was that what we need most of all is a simplification of electoral law. This clause is a classic example of making things more complicated. I think we all recognise that this is the Conservative response to the Thanet case. The case for having this in the clause is extremely weak.

I was interested to hear the noble Lord, Lord Collins, talk about the 1970 election campaign. I am older than him. I worked at party headquarters during the 1966 campaign. Looking back, it was incredibly amateur. The Conservative campaign was not that much more professional than ours at the national level. Then, the largest department in the Conservative headquarters, as I remember it, was the research department. We did not have phone canvassing, of course. We did not use opinion polls much. At the time, I was otherwise working as a research assistant to Dr David Butler on the first major survey of electoral opinion in Britain. We were using punch cards to get at our data; it was such a slow process that you could not analyse during the campaign at speed. We did not have any digital campaigning, of course. In those days, the Conservative Party had a couple of million members and raised a lot of its money and did most of its activity at the local level.

We have shifted a long way since then, soo I want to talk about some of the principles; I hope that the Minister still recognises that they are important. They cover this clause and Part 4. The first principle is that we should retain a clear distinction between constituency campaigning and national campaigning. After all, it is one of the most tried and tested aspects of our democracy that Parliament consists of people who represent local communities in constituencies. They have not always been individual constituencies as there used to be multiple-member constituencies; the noble Lord will go back far enough, but never mind.

That is the principle. It has already been weakened by the tightening of limits between constituencies, which means that the new constituencies that are about to be redrawn will represent recognisable local communities much less than they have done so far. We hear people—Jacob Rees-Mogg, for example—say, “We have already moved from a parliamentary system to a presidential system. That is how our elections now go”. I regret that. As it happens, I am in favour of multiple-member constituencies and a much more open voting system, but that is part of the argument we should be having about the quality of our democracy. To erode the distinction between the constituency—that is, the election of an individual MP—and the national campaign would be a fundamental shift in our democracy larger than changing the nature of our voting system. I hope that the Minister recognises that.

[Lord Grocott (Lab)]

I agree so much about the importance of the close connection between individual candidates and individual constituencies but I am sure that the noble Lord would agree with me that that is much weakened under a system of proportional representation.

[Lord Wallace of Saltaire (LD)]

We need not discuss the various alternative forms of voter registration. “Not necessarily” is the easy answer.

The second principle I want to focus on, mentioned by my noble friend Lord Stunell, is that there should as far as possible be a level playing field. We have seen what happened as that disappeared with the lifting of funding restrictions in the United States. The quality of American campaigning and the level of trust in American democracy have gone down, and that is partly because of the sheer weight of money that now deforms American politics. We have it here. I read in the Sunday Times the weekend before last that in the last three months of 2019, Ben Elliot, the chairman of the Conservative Party, raised just over £37 million for the Conservative Party, more than it was able to spend legally in the course of the campaign, and that it represented two-thirds of the money raised by all registered parties in that period. That takes the whole idea of a level playing field for democracy into deep and difficult trouble, and it strengthens the case for making sure that the regulation of expenditure, which is what Part 4 is about, is kept tight, clear and simple.

The third principle that I hope the Minister will agree on is that funding and expenditure should be as transparent as possible, both by registered parties and, as we shall come on to, by third parties, and that this clause does not help in that regard.

Clause 18 weakens regulation. It complicates and confuses it. I think we have seen from Second Reading and from our first day in Committee that noble Lords throughout the House generally agree on the need to strengthen regulation and the Electoral Commission. For these reasons, I suggest to the Minister that the clause as drafted and as intended does not match the Bill.

[Lord Collins of Highbury (Lab)]

My Lords, I come back to the comment I made on the earlier group of amendments: what is broken? What is this clause trying to put right, and does it solve it? I think we have heard from the debate on it that it does not really address the issue. Whatever happened in Thanet—and there may be other instances that were not subject to court cases—it has certainly gone through a proper legal process. As we have heard, both the Supreme Court and the Electoral Commission have addressed that issue.

I regret that we have moved away from the requirement that fundamental changes be subject to consent across all parties. That has been an important element of maintaining our democracy. Of course, the Trade Union Act was the first part of that attack by the Conservative Party on one party, which broke that consensus on funding.

As I have said before, the Conservative Party likes a debate about spending limits— “We can have a limit here, and the national limit and so on”—but the real debate is not about spending but about income. When David Cameron was Prime Minister and we have had discussions about it, we have seen that it is the income side of our politics that brings it into disrepute. Very rarely is it the spending side. The income side is about who has given the money, how much they are giving and what they expect for it. Taking big money out of politics is the issue. I say to the Conservative Party that its time will come, because when it is in opposition there will be a strong focus on the income side of this debate, and it will not like the result. It will not be able to rely on a large number of very wealthy people; it will have to rely on a larger number of low-income people, because I strongly believe that caps on donations are far more important than limits on spending. That is a debate for another day, but it is important to set today’s debate in context.

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[Baroness Scott of Bybrook (Con)]

I suggest that the Government believe that it does clarify; that is exactly what it does, so we will have to disagree on that. We feel that Clauses 18 and 20 of the Bill do precisely what the Labour Party asked for and supported in PACAC.

[Lord Wallace of Saltaire (LD)]

My Lords, if I have understood the argument that the noble Baroness has been making, this clause would not in any sense change the outcome of the Thanet case. If it is clarifying things in that direction, the clause is not necessary.

[Baroness Scott of Bybrook (Con)]

No, what I am saying is that it will clarify for candidates and agents what is required and what was not very clear at the time of that case.

We have sought input on these measures from the Parliamentary Parties Panel and we are confident that they will bring important clarity to the rules and support compliance. Indeed, Craig Mackinlay, the Member of Parliament for South Thanet, whom we have talked about a number of times, knows better than anyone the deficient nature of the current rules, and he welcomed and praised the clarity which this Bill brings to notional expenditure.

In this clause, we are also making an equivalent amendment to the notional expenditure rules for other types of campaigners, such as political parties and third-party campaigners, to ensure that all the rules are consistent. Together, these changes will bring much-needed reassurance and clarity to candidates and their agents on the rules that apply to notional expenditure for reserved elections. Alongside guidance from the Electoral Commission, with which we are working closely, this measure will support compliance with the rules and ensure that those wishing to participate in public life can feel safe doing so, clear in their legal obligations. It is for this reason that I urge that this clause should stand part of the Bill.

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[Lord Hodgson of Astley Abbotts (Con)]

My Lords, I just want to intervene, not about the substance of the matter we are debating but about the process. We have two very interesting parallel amendments which have what one might call different routes to market. The noble Baroness, Lady Hayman, said she did not really mind which was followed. I think she should worry, for reasons I shall explain. We tend to pass by—too easily, in my view—guidance, statutory codes, as just referred to by the noble Lord, Lord Rennard, regulations and rules. Who devises them, who decides what they are, who implements them and who enforces them? I think it is important that, at some point in the debate on the Bill, we take just a moment to think about the different ways this cat can be skinned.

In the debate on Clauses 14 and 15 in the last day in Committee, the noble and learned Lord, Lord Judge, who is not in his place, led the charge, assisted by several other noble Lords from around the House, to give my noble friend the Minister a kicking. I think the idea behind those speakers was to buttress, protect and safeguard the independence of the Electoral Commission. The noble Lord, Lord Stunell, referred to this earlier. Well, up to a point. The noble and learned Lord, Lord Judge, and I are absolutely as one about the need to improve the way we scrutinise secondary legislation in this country; it is clearly deficient and no longer fit for purpose.

The Delegated Powers and Regulatory Reform Committee, under my noble friend Lord Blencathra and now under my noble friend Lord McLoughlin, produced a report at the end of last year about the democratic deficit. The Secondary Legislation Scrutiny Committee, which I chair, produced a report on government by diktat. My noble friend the Minister will be fed up with me going on about this, but we are going to go on and on and talk to our colleagues in the Commons until we begin to get a better balance in the way we handle these things. That is, of course, a debate for another day, but in those two reports, we draw attention to the danger of what one might call tertiary legislation—that is, rules and regulations made by bodies that have little or no democratic control over their self-standing and no parliamentary control. It is important that I used the phrase parliamentary control, not government control. I am talking about control by the legislature, not by the Executive.

What I am saying is in no way a criticism of the Electoral Commission, but times change, commission members change just as Ministers change, and I am not convinced, as a matter of principle, that the Electoral Commission should be given too much independence in devising and implementing processes that go to the heart of our democratic system. We may feel that the system for scrutinising secondary legislation is not good enough, but we do at least have a chance to debate it and talk about it in public, here in your Lordships’ House and in the House of Commons. We cannot amend it, and I know that is a weakness, but we do provide a focal point for people who wish to comment on it, raise issues and express their support for it, discontent with it or opposition to it.

I see the noble Baroness, Lady Bennett of Manor Castle, in her place. The SLSC was very unhappy about some aspects of the procedure the Government followed about GMO and the new regulations, and therefore last night there was a lengthy debate. Could the regulations be amended? No, they could not, but there was a great deal of opportunity for people to express their concerns about that particular regulation. If the Electoral Commission produces a code, ex cathedra, there is no point at which that debate can take place. People can complain about it or write in, but there is no forum where Parliament—again, I say Parliament, both Houses of Parliament—can say its piece about whether it is fit for purpose. After all, it is Parliament that will be most concerned with and most expert in what is being proposed.

I favour Amendment 25, moved by the noble Baroness, Lady Hayman, which says it should go through the Secretary of State. I assume that when she revises her amendment, she will say “by regulation”: he or she is not just going to write it, it will be by regulation that it would come into force. I say to the noble Lord, Lord Rennard, that if he were to amend his amendment to say that the Electoral Commission has to produce a code which will become a statutory code, I think that would also serve the purpose. At present, we need to be very clear that the Electoral Commission is not the answer to everything. There is a need for the democratic process to have some input into the way this is all moving forward, or else we will have a situation where a body may be moving away from the central ethos of what the two Houses of Parliament believe is the right way to conduct things.

[Lord Wallace of Saltaire (LD)]

This is an important principle. The noble Lord and I have spent some time looking at the Charity Commission, on which he is much more expert than I am. I used to be able to quote CC9 and other bits of Charity Commission guidance by heart when I was a trustee of a charity. Does he think that the principle he is enunciating should apply to most of these commission regulatory bodies, or is the Electoral Commission a special case?

[Lord Hodgson of Astley Abbotts (Con)]

I think the Electoral Commission is a special case because we are talking about an elections Bill, but it goes wider than that. My noble friend Lord Blencathra is hot on this. He has a list of bodies that are, as he would say, running too free, but the Electoral Commission is a special case because of the nature of the Bill we are discussing. A subsidiary question is, do we need more codes elsewhere? I have some amendments down later on, which we shall get to on Thursday, which will provide a way of clarifying and giving third-party campaigners some security and safety about what they are doing— I think that is much more important. However, that is a discussion for Thursday.

My last point is to the noble Lord, Lord Collins, about his Amendment 30B. We have said again and again that we need to have our election law in one place. The fact we are having to discuss RPA 1983 in connection with this Bill in 2022 shows how urgent this is and how the points made across the Committee need to be taken on board by the Government, who at some point need to find time to pull this all together.

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[Lord Collins of Highbury (Lab)]

My Lords, this is a probing amendment, but it is highly topical. I am trying to see the relationship between the registration of parties and the sanctions legislation that we recently adopted. Following yesterday’s consideration of the fast-tracked Bill, Liz Truss plans to name even more people. It would certainly make it easier for Ministers to impose sanctions on those with Kremlin links. One of the things we addressed last night was the loopholes that have allowed oligarchs and kleptocrats to evade scrutiny. They have been quite successful in hiding their assets, certainly property—an issue we have discussed for quite a long time.

One of the things that I have been banging on about quite a bit is the Russia report and its recommendations on security risks to our democracy from interference from foreign powers and how we address that issue. We addressed this at Second Reading. It is not just some of the messaging and social network-type interference which we have seen, particularly in the US but also here, but about how our political parties are funded.

Boris Johnson told the House of Commons that

“it is very important for the House to understand that we do not raise money from Russian oligarchs.”—[Official Report, Commons, 23/2/22; col. 313.]

For many of us, it was very difficult to take that remark seriously when we look at some of the records that have been exposed. It is obviously impossible for someone with only Russian nationality, however rich, to donate legally to a United Kingdom political party, but what has undoubtedly happened is that a series of people with dual UK/Russian nationality, or with significant business links with Russia, have donated heavily to the Conservatives in recent years. Based on electoral information, Labour has estimated that donors who have made money from Russia or Russians have given £1.93 million to the Tory party or to constituency associations since Johnson became Prime Minister. In the other place, Ian Blackford of the SNP referred to the Conservatives having raised £2.3 million from Russian oligarchs.

I recognise that “oligarch” is a loose term associated with people who generally made their money from the financial free-for-all of the post-Soviet, Putin era, but those people often keep a very close link with the Russian President. One reason the legislation is so important is the connections. You can have a permissible donor who is linked very closely to someone who is not a permissible donor, and if the links to the assets and the finances are obscure it is difficult to follow the money, as Liz Truss said.

One of the biggest single donors to the Conservative Party is Lubov Chernukhin, who has donated £700,000. She has been a British national since 2011 and is married to Vladimir Chernukhin, a former deputy finance Minister under Putin. Documents published in the Pandora papers in October suggest that he was allowed to leave Russia in 2004 with assets worth about $500 million and to retain Russian business connections. Lawyers representing the couple say that none of the wealth was acquired in a corrupt manner and none of Vladimir Chernukhin’s wife’s donations was funded by improper means or affected by the influence of anyone else. That is extremely difficult to understand when you look at some of the documents in the Pandora papers published by the Guardian. Lubov Chernukhin is also notable for winning the prize of a game of tennis with Boris Johnson at the party’s 2020 fundraising ball. It is not clear whether she has managed to get that prize yet.

That shows us the extent of foreign money coming into our political process and our political parties. The reason I am raising that on this clause is that we have yet to see political parties being established for the purpose of undermining the political system we have. I anticipate all kinds of reactions from friends of Putin—to put it that way—that we have not seen before. If our sanctions legislation gets stronger and we have the economic crime Bill that we anticipate seeing in the next Session, we may see this hidden money going in different ways that will perhaps have less scrutiny but very strong connections. I am probing this to see what the Government have thought of in terms of transparency in the establishment of political parties and what they are going to do about the broad recommendations of the Russia report, which they have not really taken into account. We will certainly be returning to the question of donations to political parties later in consideration of the Bill, but I thought that this was an opportunity to look at whether there has been any risk assessment by the Government of how political parties that could fundamentally undermine our system may be established and funded. I beg to move.

[Lord Wallace of Saltaire (LD)]

My Lords, I am conscious that there are other democracies in Europe which have parties on the right that have admitted to receiving money from Russia as loans or as grants. Happily, this country is not in that position, but a number of shadows hang over our politics and we have got quite close to it on a number of occasions. It currently affects the Government because they refused to publish the evidence the Intelligence and Security Committee collected on foreign interference in British politics four years ago and they have not yet published the evidence on the suitability of those who came in on the golden visa scheme between 2000 and 2015. That report was commissioned four years ago. If one goes back to the referendum campaign, so far as I am aware, we still do not know where the largest donation to the Brexit campaign came from, although I had one very odd conversation with a senior member of the City of London who told me that everyone knew that it came from a particular foreign country. There are issues here. We shall return to them when we get on to donations.

I mark in general that this is yet another reason why we should be lowering the limits on campaign spending at national and constituency level, not raising them, because money corrupts politics. I think that the Conservative Party has come close to corruption in the way it has very successfully expanded its fundraising, with the creation of a donors’ club. I have read on the front page of the Times that donors have said that they are unhappy about what the Prime Minister is doing on this, that and the other, and that clearly shows that donors influence politics to a considerable extent in the Conservative Party.

Yes, of course, we are all guilty. My party has also accepted one or two large and very welcome donations which were a little bit questionable. That is because we are so desperate for money for campaigning—and it is part of the reason why I agree that we should be lowering limits. So, I support the probing amendment from the noble Lord, Lord Collins. We will return to this on a later day in Committee. It is a fundamentally important issue for British politics, because part of what is corroding public trust in politics at present is the deep suspicion that money buys Ministers.

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[Lord Wallace of Saltaire (LD)]

My Lords, I in no way suggested that. I merely remarked that the question of where the largest donation to the Brexit campaign came from has not been explained, which is entirely different. I trust that the Minister is also concerned about that, rather than making jokes about it.

[Lord True (Con)]

I made no joke. I drew attention to the noble Lord’s remarks, and they will stand on the record. So far as this matter is concerned—and I have heard the cascade of innuendo ending with the remark that Ministers can be bought, which will also lie in Hansard—I move on to a serious response to a serious—

[Lord True (Con)]

I stand by the remarks I made in response to comments from the Front Bench of the Liberal Democrat party. I would like to—

[Lord Wallace of Saltaire (LD)]

My Lords, I do not know whether the noble Lord reads the Sunday Times—perhaps he only reads the Sunday Telegraph—but the Sunday Times in the last two weeks has included a good deal of evidence on the role of the donors, access to Ministers and what one of the Conservative Party’s largest donors has called “access capitalism”. Perhaps he has missed all that.

[Lord True (Con)]

My Lords, I was working on my allotment on Sunday morning. I will come to the point that was raised by the noble Lord opposite, which I take extremely seriously. It is a probing amendment but an important subject. I have discussed it with the noble Baroness and the noble Lord. I look forward also to engaging in discussions when we come to her amendments, which are on an analogous subject.

What the noble Lord suggests is, obviously, on the face of it, a good idea: that the commission should reject the application of a political party if its declaration of assets and liabilities demonstrates assets designated under the Sanctions and Anti-Money Laundering Act 2018. I absolutely recognise the importance of that regime, although a debate on its intricacies does not fall within the scope of this Bill. I do not make any complaints about that, however, and I am happy to address it because of the gravity and importance of the issue.

On the specific point the noble Lord raises—I will be brief—sanctions law is incredibly clear: all individuals and legal entities who are within, or undertake activities within, the United Kingdom’s territory must comply with UK financial sanctions that are in force. This includes not only political parties but candidates and other types of campaigners listed in the relevant areas of the legislation. Where a person or entity is designated as subject to financial sanctions, the nature of the resulting restrictions means that the person’s assets are frozen and consequently that person would be prohibited from using those assets for any purpose. This would include the funding of a political party.

While the Government entirely agree with the principle that sanctioned assets should not be used for the benefit of anyone—including prospective political parties, which we are discussing specifically on this amendment— we believe that the current sanctioning regime already provides for this and we remain to be convinced that an additional provision is required in this Bill. I am sympathetic to the noble Lord’s intentions here. I believe that his point is already acknowledged but, in the light of the importance of the matter that he has raised, I will make doubly sure that that is the case. With that assurance, I hope he feels able to withdraw his amendment. I am ready to discuss the matter with him further, as we have already engaged.