Elections Bill (Eleventh sitting)

Brendan O'Hara Excerpts

Committee stage
Tuesday 26th October 2021 Public Bill Committees

[Fleur Anderson]

In many respects, supporting good causes is done by campaigning. For many charities, the causes of the symptoms they are seeking to address will be back in Government policy. The policies that we decide all the time obviously have an immediate impact on people on the ground. Charities work with those people and need to change the policies to change the issue they are addressing.

[Brendan O’Hara (Argyll and Bute) (SNP)]

Does the hon. Lady agree that charities by their nature have expertise and understanding—for example, of homelessness, third-world debt, climate change, or whatever—that we in this House have to learn from? The idea that they should be restricted simply to raising funds to alleviate an issue, rather than trying to engage and inform the debate, is simply preposterous.

[Fleur Anderson]

I absolutely agree. For example, during this Bill Committee, we have relied on expert advice from the Royal National Institute of Blind People about the impact of these changes on people who are blind or partially sighted across this country. As the representative organisation of those people, who will be affected by the Bill in how they vote, the RNIB should be giving us expert advice. In the future, having to work out how much money it has spent jointly and severally with other organisations, which tier it falls into and whether it will get on to the list will all have an effect on whether or not we receive that expertise, which helps us to be much better decision makers.

When we consider that the Conservative party spent £16 million in the last general election, we see that lowering the spending threshold for groups to register during an election from £20,000 to £10,000 is clearly aimed at deterring smaller organisations, community groups and single-issue groups, which the hon. Member for Argyll and Bute mentioned, such as groups concerned with refugees, disability rights, women’s rights and LGBTQ issues. Community groups campaigning on a single issue in our constituencies may fear running afoul of changing election rules, which will have that chilling effect.

I ask the Minister whether there will be a review of the impact of the lobbying Act as we go forward with the Elections Bill, because I think that they go together. To know what impact the lobbying Act has had on campaigning will be very instructive. Perhaps there has been such a review already, and I did not know about it. If not, will there be a review of the impact of that Act and this legislation on campaigning, particularly single-issue campaigning?

If existing party activity is redefined as joint campaigning, smaller unions that spend only very small amounts on regulated activity and do not come close to meeting the threshold for registering with the Electoral Commission could find themselves having to register and submit a complex and comprehensive return, despite having not spent any of their own funds on a campaign. Should not they be spending their money on frontline service provision and advocacy, rather than filling in complex and comprehensive returns that do not add to transparency but only decrease our democracy? This will be a huge bureaucratic burden on small organisations; it is both completely unnecessary and overly burdensome.

Labour’s amendment 76 seeks to reduce the chilling effect and remove the burdens of additional regulation by exempting registered charities and community interest companies from the notification and registration requirements. In the community organisation that I worked for just before I became an MP, there was a fantastic organisation called SEN Talk—special educational needs talk.

For years, I supported it in becoming a CIC. It is a long process. The organisation had to go through a lot of measures and have a lot of transparency. It was doing a lot of frontline work with parents and children with special educational needs, but also it was advocating to the council for the changes that it needed in order to operate on behalf of parents, and to the Government, and working on Select Committee reports, for example. If that organisation were asked to then submit returns but did not know exactly when the election period was and feared falling afoul of this, it would have to cut down on its frontline services or not take part in the advocacy that really does help it to stand up for children with special educational needs. It would put that organisation in a real bind, and it is just one example.

This proposal has also, as I have mentioned, been called for by Bond—the overseas aid network—and several other third-sector organisations. Setting up a registered charity takes considerable time and effort, and these entities must already, by law, identify their trustees—or, in the case of CICs, their directors—and publish their accounts. There are already robust transparency initiatives regulating charity governance, so it is highly unlikely that those seeking to exert undue influence in elections would pursue this approach as a means of evading regulation. I would like to know how many conversations the Minister has had with CICs, in particular, about the effect of the Bill.

Registered charities cannot exist for solely political purposes, and charities that do engage in political activity in pursuit of their charitable objects are already closely monitored by the Charity Commission. These organisations would still have to register with the Electoral Commission as a non-party campaigner if they met the existing spending thresholds.

Amendment 77 would recognise the need for all campaigners at elections to submit to electoral regulation by the elections regulator, and to be transparent about their purpose if they are seeking to campaign to influence voters at election time—but without duplicating the compliance burden for those organisations that already routinely are required to be transparent.

I urge all hon. Members to support these very reasonable amendments, which would allow small organisations and single-issue campaigns to continue to campaign.

--- Later in debate ---

[Patrick Grady]

Absolutely. Where are those decisions ultimately made? Here, in rooms like this one. We are engaging with charitable organisations on this Bill. We are being advised and lobbied on matters in the Bill by organisations that are making representations to us, have frontline experience, and are delivering in a whole range of sectors. We have heard from domestic organisations and from Bond, the international development network.

I am sure all Committee members have diligently read the written evidence submitted by Bond, EB14. I strongly encourage them to do so, because it explains the challenges and difficulties faced by these organisations, which are having to comply with election registration regulations and reporting requirements, and finding it incredibly difficult. There is evidence in that document—we heard it from the hon. Member for Putney as well—that many organisations are already choosing simply to step back, so their voices are not being heard. That goes back to the narrative of what exactly the Bill is trying to achieve, in terms of suppressing debate and political participation in this country.

Although clause 24 is not quite as draconian as clause 23, it is still pretty oppressive. Amendment 96, tabled by the SNP, could achieve much the same as the Labour party amendments in exempting registered charities from these incredibly stringent new reporting requirements. The threshold of £10,000 could easily be reached once everything that had to be calculated was taken into account, such as staff time, resources, and collaboration with other organisations.

It would be easy to hit that threshold, potentially unexpectedly. The charity would then face another burden if it was sanctioned. There have been examples, referred to in the written evidence, of charities that inadvertently crossed the threshold and did not report that appropriately, and then faced fines. That is fair enough, if that is the regime, but it is another cost. That is money that people have given to those charities. It might be taxpayers’ money, received through gift aid, that has to be spent on fines, compliance and regulation, deterring the charity from political participation and delivery of frontline services, when it already exists in a rightly strong and tightly regulated environment.

The Government should accept the amendments. If they genuinely believe in levelling up, surely they want to hear from organisations that have frontline experience of the difficulties and challenges being faced by ordinary people day to day, and that are identifying solutions that will help to raise standards in society and level up. In fact, we are seeing a levelling down, suppression of debate, sticking with the status quo, and a message not to challenge anything coming from the Government who happen to be in power now.

We have learned in this Committee and in others that the chances of an amendment succeeding are middling to none. Nevertheless, I look forward to the Minister’s response to my points.

[Brendan O’Hara]

It is a pleasure to follow my hon. Friend, who is absolutely right, though I admire his endless optimism that the chances are middling to none. He is far more optimistic than me that the Government will ever move an inch. That does not mean that the arguments cannot be made. Indeed, there is every reason for the arguments to be made.

At general elections, every single one of us has been made to think, question and commit one way or another to an idea coming from a third party or campaigning organisation. That is exactly how it should be in a democracy. When we put ourselves forward for election, people have a right to know where we stand on the big issues of the day—whether that is homelessness, third-world debt or support for those suffering domestic violence—and where better to do that, for a charity or third party organisation, than a general election? People are not asking us just as individuals; they are asking all those who put themselves forward for election in this country where they stand, because our public have an absolute right to know that.

The real question is about the motivation of the Government in introducing the measure in the first place. Campaigning is a core function of many organisations. It allows them to highlight areas of concern and contribute to the wider public discourse, from a position of authority and experience, from which every one of us benefits. We have all heard from numerous third party organisations of their concerns, but these measures will make an already complicated area even more confusing and burdensome for those issue-based campaigning organisations. They face new rules that may see them inadvertently fall foul of legislation and, as a result, step a long way back from their activity. They will shrink back from that public debate, which can only harm our democracy. That will dampen public debate, and the voice of those marginalised groups they represent will be further diminished.

Organisations will quite rightly engage in campaigning 12 months prior to a general election, but the vast majority of that campaigning will not be focused on that general election. Those organisations campaign every day of the year, every year of a decade. That is what they are there to do; they are there to inform and to advocate.

What is really troubling here is the purpose test and whether it can be passed. It is confusing. The legislation says that the purpose test can be passed if it

“can reasonably be regarded as intended to influence voters to vote for or against political parties or categories of candidates, including political parties or categories of candidates who support or do not support particular policies”.

That is all well and good, but the confusion arises because that is not the intention of the charity of a third sector organisation. The interpretation comes from someone else, and it is their perception of what counts as political campaigning. Even if the charity is clear that that is not its intention, it could be decreed by someone else that it is. The result is that the charities will shrink from those areas of concern—homelessness, domestic abuse—for fear of falling foul of the legislation. Many of us on this side of the Committee think that that was probably the Government’s intention from the start.

[Kemi Badenoch]

Amendments 76 and 90 would exempt from the transparency requirements provided by the lower tier of expenditure registered charities, charities exempt from registering with the Charities Commission, and community interest companies spending more than £10,000 across the UK but less than the existing notification thresholds. Amendment 77 would allow those groups to forgo the usual notification process for the lower tier and instead provide only their charity or company number.

The Government are clear that any group spending significant amounts in UK elections should be subject to scrutiny. That is essential to ensure transparency for voters and to maintain the level playing field for all participants in elections. It is therefore right that all types of third party campaigner should be subject to the same sets of rules where they are trying to influence the electorate. The amendments would undermine those principles, and the Government cannot accept them.

Additionally, third party campaigner regulations do, and should, focus on the purpose of campaigning activities conducted by all organisations, not just specific types of organisation. Charities and CICs can always choose to spend less than £10,000 in the period before an election if they do not want to register with the Electoral Commission.

--- Later in debate ---

I simply do not accept the argument made by the hon. Member for Glasgow North. He asked how charities would know when an election was forthcoming, but he also said that charities specifically are doing that around election time. He is making two almost mutually exclusive points. The fundamental point made by SNP Members was about charity participation in elections, rather than political finance transparency, which is what the Bill is about.

[Brendan O’Hara]

I ask the Minister a very, very simple question. How will a charity or any other organisation—

[Patrick Grady]

Or a Back-Bench MP.

[Brendan O’Hara]

Indeed, or a Back-Bench MP—how will they know when they are in that 12-month period before a general election?

[Kemi Badenoch]

The fact is that we all have a fairly good idea of when an election will be. Although snap elections can be called, the fact is that everybody will be in the same situation.

[Brendan O’Hara]

Will the Minister give way?

[Kemi Badenoch]

I am not giving way again on that point. Third party campaigning groups will not have any special intelligence. People will need to take that into account when they are campaigning politically. People seeking to influence the electorate should all be subject to the same laws.

The debate is not about whether charities are nice groups or nice individuals, which is 50% of the argument made by SNP Members. To be perfectly honest, it sounds like Opposition Members want charities to make their political arguments for them, because they think they are more acceptable.

[Brendan O’Hara]

Will the Minister give way?

[Kemi Badenoch]

I am no longer giving way on that point.

That is not how we want to regulate our politics or our electorate. Charities should make points on their own—not in the way that SNP Members are saying, as if there are other political reasons that would be helpful to them, rather than the Government. They accuse us of playing politics, but it sounds to me as though they are the ones doing that.

--- Later in debate ---

[Kemi Badenoch]

The hon. Lady knows that I cannot answer any questions about when elections are forthcoming. That does not change the premise of our argument. I do not know; she does not know; charities do not know; no third party campaigners know. The law is equal for everybody. I am afraid we simply do not accept the argument that there should be special rules and exemptions for particular groups.

Charities can supply the relevant information, and the amendment would increase the administrative burden for the Electoral Commission—a point it has made several times—and not allow it to obtain all the necessary information covered in the notification requirements. Under the amendment, charities and community interest companies would not have to provide the name of a responsible person. That information cannot be obtained through Companies House or the Charity Commission because it is specific to electoral law.

It is important to identify a person who will be responsible for ensuring compliance with electoral law. Naming a responsible person also acts to protect third parties from being liable for expenditure that has not been authorised by that person. Allowing charities and community interest companies to be exempt from that requirement would risk their duty of compliance and protection falling away, which would not be right. In the light of the reasons I have given, and the minimal burden on charities that the measures will generate, we oppose the amendment.

[Brendan O’Hara]

I have a question for the Minister, which I think is a perfectly reasonable and fair question to ask on behalf of charities. How do they know right now that they are not 12 months out from a general election? How do they know where their spending is in relation to the next general election, and that they have not already exceeded the threshold? The question is whether she thinks it is fair for charities inadvertently to fall foul of the legislation, with their having absolutely no way of knowing where they stand because the Government have changed the rules around about them. Will she address the basic issue of fairness to our charities?

Question put, That the amendment be made.

--- Later in debate ---

[Kemi Badenoch]

Third party campaigners are subject to limits on their controlled expenditure in the periods leading up to parliamentary elections in the UK, including devolved elections. The time during which those spending limits apply are known as regulated periods and are 12 months long for UK parliamentary elections and four months long for the relevant parliamentary elections in Scotland, Wales and Northern Ireland. Regulated periods can be longer where they overlap. It is right that any campaign that could influence the electorate at an election should be regulated and subject to a spending limit. While significant amounts of spending might take place following the announcement of a poll, elections are often known, rumoured or expected to take place long before the poll date is announced and a Parliament is dissolved, which is the point that we are debating.

[Brendan O’Hara]

Can the Minister explain how the House can legislate on the basis of a rumour of when a general election might be? How is that any way to run a country?

[Kemi Badenoch]

That is not what we are legislating on; that is a statement of fact. Just as with every intervention the hon. Gentleman has made, it is a point we all acknowledge that while elections are at expected times, they can happen at different times: earlier or there may be snap elections, though rare. That does not change the fundamental point under discussion.

Opposition Members seem to be annoyed that there is a regulated spending period at all. I am afraid that that is not going to change. Campaigning and political activity, which can occur up to 12 months or more in advance of an election, may have a significant influence on its outcome. Having a short regulated period, as proposed by the amendment, would mean that spending, which does influence the electorate, is likely to fall away from being regulated and reported. That fatally undermines the principle of transparency and spending limits.