Elections Bill

Earl Howe Excerpts

Lords Hansard - Part 1 & Committee stage
Monday 28th March 2022 Lords Chamber

[Lord Collins of Highbury (Lab)]

My Lords, I too wish the noble Lord, Lord True, a speedy recovery and a quick return to duty, hopefully in time for Report. I am sure that the noble Earl would be pleased by that.

This has been a very good debate, because it has focused on broader issues of principle which we need to probe the Government on. The noble Lord, Lord Wallace, is absolutely right, as we have said at a number of stages, that this Bill represents missed opportunities. It is not so much what is in it as what is not in it that has been a problem. I am sure that the amendments which we have tabled will be considered. If they are not in this legislation, we will return to these broader issues of principle. The one thing that we would have all hoped for in terms of that right to vote is clarity, which we do not get here for all kinds of reasons, not least legacy reasons. Noble Lords have spoken about the complications that we will now face which we had not faced previously, not least that we will have some EU citizens with the right to vote and some without the right to vote, based on when they arrived—an arbitrary date as far as they are concerned.

Of course, the principle that we have sought to highlight in our amendment is what sort of qualification would make sense, would be clear and would be easily understood. We bandy terms such as “no taxation without representation” around, but lots of people who should be perfectly entitled to vote do not pay tax, particularly council tax. Residency is an important principle and perhaps the missed opportunity that this Bill could have addressed more properly, not least because of that legacy. I am not arguing at all for a change in what happened in the Brexit vote. We have left the EU. However, there is a legacy that we must consider there, particularly on people who have made their home here.

I must declare an interest, not least because in my household, with every general election that comes around, we are denied the right to vote. I wish we could vote but we cannot. My husband has lived here for 27 years; he has been a taxpayer, a national insurance payer and a council tax payer. He is a member of the Labour Party, has campaigned for candidates and has voted in every local election that he has been permitted to. The legacy of that will continue. The complication is that it will not apply to other EU citizens who establish the right of residency, who work here and who pay tax here. After a certain date they will not have that right to vote. It causes unnecessary complication.

Throughout this Bill I have readily agreed with the noble Lord, Lord Hodgson, particularly on citizenship education—and by the way, citizenship education should not be limited to citizens of the United Kingdom. The rights and responsibilities of living in this country should be understood by all who live in this country, and we would create a much safer society if we undertook that responsibility. That is why we should consider a right to vote based on the clear principle of residency. Maybe we will not have the opportunity in this Bill. The noble Lord, Lord Hodgson, said that people who just pop over here should not have the right to vote. However, because of our legacy as an empire and our legacy in terms of the Commonwealth, it is a bit ironic that a student from Australia on an overseas experience visa can land in this country and get the right to vote, but my husband, who has been here for 27 years and paid tax, does not. It does not really make sense.

This is, sadly, a missed opportunity. Amendment 156, in the name of the noble Baroness, Lady Suttie, and my noble friend, deals with precisely that issue: instead of clarity we end up with confusion, with some people having the right to vote and others not, but both having the right of residency and to work and pay tax and national insurance. This country will have to consider that at some stage, if not now. I hope the Minister will understand why we have tabled our amendment. I agree with the noble Lord, Lord Wallace, that this is a missed opportunity. I am sure none of these amendments will be agreed to, but I hope that the principle we are trying to establish will be considered in the future.

[Earl Howe (Con)]

My Lords, I begin by conveying the regret of my noble friend Lord True that he is unable to be in his place today because of illness. As a result of his indisposition, the Committee finds itself with a deputy Minister in the shape of me. That is a privilege for me, but I am only glad that I am so ably supported by my noble friend Lady Scott in this endeavour.

My Lords, this group of amendments deals from various perspectives with the voting franchise in the context of UK national elections. I hope that I can be of help to noble Lords in setting out the Government’s approach to this issue and the logic that lies behind it. I was grateful to my noble friend Lord Hodgson for what he said in connection with Amendment 152, which I shall begin with.

The purpose of Amendment 152 is to require the Government to allow EU citizens to vote in UK parliamentary elections. It may be helpful if I explain our policy position on this. Our policy has always been that after our exit from the EU there should not be a continued automatic right to vote and stand in local elections solely by virtue of being an EU citizen. The provisions in this Bill are based on two main planks: first, to respect the existing rights of those who chose to make their homes in the UK before the end of the implementation period; secondly, to look to retain rights on a bilateral basis where possible.

Amendment 152 would extend the parliamentary franchise to EU citizens where no such rights previously existed. In a similar vein, Amendment 156 seeks to allow EU citizens to continue to vote and stand in local elections in Northern Ireland. Those who are nationals of an EU member state have never been able to vote in UK parliamentary elections by virtue of their EU citizenship. If an EU citizen becomes a British citizen, they will be eligible for the parliamentary franchise from that point.

The Government stand by their commitment to EU citizens resident before EU exit, and the Bill ensures that any EU citizen who was a resident before the end of the transition period on 31 December 2020 and who has retained lawful immigration status will retain their voting and candidacy rights in England and Northern Ireland. This goes beyond our obligations in the withdrawal agreement. EU citizens who arrived after the end of the transition period will move to a position whereby local voting and candidacy rights rest on the principle of a mutual grant of rights through voting and candidacy rights agreements with individual EU member states.

On Amendment 156, the noble Baronesses, Lady Suttie and Lady Ritchie, and the noble Lord, Lord Dodds, referred to the Northern Ireland Human Rights Commission and the Equality Commission for Northern Ireland. As was rightly said, both those commissions have sought clarification on EU voting and candidacy rights in relation to the Northern Ireland protocol. The UK Government’s position is very clear and has been explained to both commissions. Removing voting and candidacy rights from EU citizens arriving in Northern Ireland after the implementation date does not run counter to article 2 of the Northern Ireland protocol.

Article 22 of the Treaty on the Functioning of the European Union confers a right to vote and stand as a candidate in municipal elections only in respect of EU nationals who are resident in another member state, having exercised their rights of free movement and residence. As the UK is no longer a member state, EU citizens self-evidently no longer enjoy the right to reside here, so the ancillary article 22 right to vote and participate in municipal elections is no longer applicable to it in this context. This is entirely consistent with part 2 of the withdrawal agreement, “Citizens’ rights”. I hope that is helpful.

I submit to your Lordships that the Government’s approach is a sensible and fair one, whereby established rights are recognised while moving to new bilateral agreements with individual nation states in the EU. I am afraid, therefore, that the Government cannot accept either of these amendments.

Amendment 155 is intended to extend the parliamentary franchise to foreign nationals with certain types of immigration status in the UK. The right to choose the next UK Government is rightly restricted to British citizens and those with the closest historical links to our country. In this respect, the UK is in line with international norms. Citizenship is the normal criterion for participating in national elections in most democracies, including the UK.

Amendment 155A in the name of the noble Lord, Lord Shipley, proposes to enfranchise all who pay council tax in the relevant local authority area. Taxation has never been the basis for representation in the UK in modern times. There is a long-standing principle in the UK, as originally recommended by the Committee on Standards in Public Life in 1998, that those who do not pay income tax, such as those earning less than the tax-free personal allowance, rightly remain entitled to vote. Similarly, full-time students are legally exempt from paying council tax but still have the right to vote in local elections. So, I submit that that connection between taxation and voting does not exist. The Government hold to that principle and therefore cannot support Amendment 155A.

The noble Baroness, Lady Bennett, asked me a number of questions. I will arrange for a letter to be sent to her, but I will comment on her point about credit scoring and being on the electoral roll. The noble Baroness is, of course, not wrong in pointing out that credit reference agencies use the electoral roll to enable lenders and other service providers to confirm someone’s identity. However, it is true to say that lenders look at the entirety of the information on a person’s credit side, as well as other factors, to decide whether to lend to somebody. Lenders and other providers of financial services can ask for other forms of identity and confirmation.

The noble Baroness also asked whether we were taking steps to inform local authorities about the measures being taken. The Government are very conscious of the competing priorities that local authorities have and, particularly, electoral registration offices, both in relation to their business as usual activity and in the new activity that will be conferred by the Elections Bill. We are committed to working closely with the electoral community throughout the development of secondary legislation and implementation planning. We will commit to funding all new burdens incurred by EROs as a result of implementing this policy, as is customary.

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[Baroness Meacher (CB)]

Before the Minister sits down, he rightly said that taxation has not historically been used as a justification for the right to vote, but have the Government actually looked at it? In the context of a Bill that will supposedly rationalise and make sense out of our electoral system, have the Government looked at the idea that taxation would be a good, sensible rationale for the right to vote—at least at local elections, where it would be a lot more straightforward than national elections?

[Earl Howe (Con)]

My Lords, I understand where the noble Baroness is on this. I think one has to distinguish national elections from local elections, and the rules do so in respect of the various categories of individuals who live in this country. To answer her question directly: the Government have looked at this issue and we do not believe that a change is warranted. As I say, we do not deny the vote to those who happen not to be earning. Equally, we do not grant the vote, in general elections, to foreign nationals who happen to pay council tax. I think there are good reasons for that.

[Lord Shipley (LD)]

Before the Minister sits down, can I clarify what he has said about liability for payment? My Amendment 155A relates to the liability to pay council tax. Where people are excused, they might otherwise be liable to pay council tax but, because of government legislation, they have been excused the need to do so. I make the point that although I planned this as a probing amendment, I now realise we have a much bigger issue to address, and we will need to discuss this further on Report.

[Baroness Deech (CB)]

My Lords, may I point out one other anomaly? I imagine everyone in this House pays tax, and yet we do not have the vote. I think that is really rather unfair and hope to see that rectified.

[Earl Howe]

The noble Baroness, Lady Deech, is, of course, quite correct and we will be looking at the question of voting rights for noble Lords in a subsequent group of amendments.

[Lord Wallace of Saltaire (LD)]

My Lords, this has been a very useful debate, which has yet again exposed how unco-ordinated and ill thought through this Bill is. I strongly agree with what the Minister said: local elections are different from national elections. Indeed, in the late-night debate we had last week on overseas voting, it was pointed out that overseas electors are allowed to vote in our national elections but not in our local elections. If there is a good, rational argument for that, then there is an equally strong argument why long-term residents in Britain should be allowed to vote in local elections but not in national elections. If one were to think these things through, and clearly the Government have not, we would be moving in that sort of direction.

Similarly, if we had automatic voter registration, the complexities of residents and non-residents would be clearer. Incidentally, the logic that says overseas electors are not allowed to vote in local elections because they no longer have any connection with the local area goes completely against the logic that they should be allocated to constituencies, which they have lost touch with over the decades since they were in Britain. That is why I put down the amendment on the creation of overseas constituencies, but that has not been thought through either.

We all understand, as someone said to me at the weekend, that the Bill is driven by staff in No. 10 who are above all concerned with increasing the chances that the Conservatives win the next election. One of the strongest arguments for prioritising overseas voter registration over other categories is that they are thought to be more likely to vote Conservative.

[Earl Howe (Con)]

I am grateful to the noble Lord for allowing me to intervene. As I understood it, it was official Liberal Democrat party policy to scrap the 15-year rule that has existed up to now on overseas voters. Can he confirm that that is the case, because that is what the Bill does.

[Lord Wallace of Saltaire (LD)]

Yes, and to create overseas constituencies. I am looking at the noble Lord, Lord Altrincham, who was deeply shocked to be told by the noble Lord, Lord True, in a meeting a few weeks ago when he recommended the creation of overseas constituencies on the French model that that was Liberal Democrat policy. I hope he has now recovered from the shock.

There are tremendous problems with the Bill and the failure to connect all these dimensions. We will come in the sixth group to one of the other reasons why the Conservatives want to push ahead with extending the rights to overseas voting without thinking through the other dimensions of it, which the Liberal Democrats have thought through—the expectation that, once overseas voters are on register, they will be able to increase the systemic advantages—

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[Lord Collins of Highbury (Lab)]

My Lords, we talk about piecemeal reform, and changes to this House have not necessarily been a result of legislative change or even reform. I have mentioned in previous debates the excellent book by Antonia Fraser about the debate on the Great Reform Act 1832. What I found most fascinating was that most Members of the House of Commons were sons of aristocrats and were put there by their fathers to have proper training to come into the House of Lords. Of course that was in the days when the powers of this House were great, as noble Lords have mentioned.

What recently shocked me even more—and I have cited this too—were the diaries of “Chips” Channon, who, when he was writing pre-war, leading up to the 1938 Munich debacle, mentioned that most of his friends in the House of Commons were sons of aristocrats who eventually ended up in this House. I hope things have changed. Constitutionally, things have radically changed, quite rightly, in the powers of this House, which can no longer challenge the democratic mandate of the House of Commons. The question is not simply about whether we are here for life or not; it is about what we do here. Even where we have particular circumstances of power, I am one of those people who would not use it to challenge the democratically elected House of Commons.

My noble friend made a very powerful case, and the point that struck me was that not many people in the public out there are aware that we have not got the vote. I remember campaigning in the 2017 election and a young, radical activist stopped me and asked if I had voted yet. When I explained I could not vote for Jeremy Corbyn, she nearly issued an internal disciplinary notice. Once I had explained, I was eventually forgiven. But I think it is a point worth making that most people assume that everyone in this country has a free and fair democratic right to vote, and it just seems ridiculous that we do not.

[Earl Howe (Con)]

My Lords, this amendment from the noble Lord, Lord Dubs, who is joined on the Marshalled List by my noble friend Lord Naseby, brings us to a topic on which each of them has tested government policy on a number of occasions in the past, including, as I recall and as the noble Lord, Lord Dubs, mentioned, through my noble friend’s Private Member’s Bill in 2019. On the latter occasion, my noble friend Lord Young of Cookham set out the Government’s response, and I therefore hope it will not come as a shock to the noble Lord, Lord Dubs, that my response today bears an uncanny resemblance to the one given to the House previously.

I understand and respect the case that noble Lords have articulated on this issue. However, I am afraid it is not a case I can accept, and the reason is clear and straightforward and was well articulated by my noble friend Lord Cormack. Noble Lords will be aware that although, as the noble Lord, Lord Collins, rightly said, the role of this House has changed over time, our place in Parliament still gives us a position of influence not held by other citizens. My noble friend Lord Sherbourne asked what the downside would be of accepting the amendment. Enfranchising noble Lords to vote in general elections would give Peers two ways of being represented in Parliament. Members of this House have an opportunity to debate and vote on legislation. To provide a vote for Peers in UK parliamentary elections would undermine the principle that all citizens are equally represented in politics.

[Baroness Jones of Moulsecoomb (GP)]

Is that not true of MPs? Why should they be allowed to vote? They have two grabs.

[Earl Howe (Con)]

When Parliament is prorogued for a general election, MPs cease to be Members of Parliament. They therefore become ordinary voters, if I can put it that way.

In our democracy, everyone should have a voice, but the Government’s view is that Peers who are Members of this House have that by virtue of their participation in this Chamber. That principle has been upheld for more than 300 years, including by the courts. It has not altered over successive Governments: in fact, in the debate on his Private Member’s Bill nearly three years ago, my noble friend Lord Young reminded the House that, as recently as 1999, Section 3 of the House of Lords Act explicitly enfranchised hereditary Peers who are not Members of this House and disfranchised Peers who are.

The noble Baroness, Lady Quin, asked whether Peers who have retired from this House have the right to vote. My understanding is that they do, because they ceased to be parliamentary Peers at that point.

The noble Lord, Lord Redesdale, asked about the cost of taking parliamentary Peers off the register. I doubt that that cost has been computed by anybody—of course, there must be a cost—but it is a very considerable privilege that we as Peers have, and I for one would argue that it is not unreasonable for that privilege to carry a public cost.

[Lord Cormack (Con)]

Of course, we are on the register and can vote in every other election, including local government elections, referenda—the lot.

[Earl Howe (Con)]

I think the point made by the noble Lord, Lord Redesdale, was that a distinction must be made on the register between different types of election, and that that carries a cost; he can correct me if I am wrong in assuming that.

This House is a respected voice that adds depth and, I hope, wisdom to our legislative process. It allows us, as its Members, full participation in the life of the nation. The Government therefore have considerable reservations about this proposed new clause, and I ask the noble Lord, Lord Dubs, to withdraw his amendment.

[Lord Dubs (Lab)]

My Lords, I never thought that so many different sorts of opinions would come out of the woodwork. It has been absolutely fascinating. The arguments have been somewhat different from the last two or three times we debated this issue. I just want to comment on them briefly.

As regards the voting list—this is a technical point—my understand is that there is no obvious way in which when we register we can declare that we are Members of this House. Somehow, in some local authorities, the polling clerks are aware of it but, in others, they are not. I am always mystified by that; it is not clear. I have known of people who have not been debarred from voting and could have gone to vote—they did not do so but they could have—simply because it was not obvious to the polling clerks that they were Members of this House.

On my noble friend Lady Quin’s comment about Members of Parliament, again, it is purely a technicality that they cease to be Members of Parliament during the period of an election campaign. Nobody knows about it except for a few nerds like us—sorry, nerds like me. It just means that they are technically not MPs. However, for all practical purposes, of course they are; they still get representations made to them, constituency casework and so on. Even during the election campaign, they cannot just say, “No, I’m not prepared to do it.”

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[Lord Collins of Highbury (Lab)]

My Lords, I have some sympathy with the points made, but I wish this amendment could have been debated in the group of amendments we had on the entitlement to vote, because I do not really want to move away from the principle I articulated before. Not everyone wants to lose the status of their nationality. For example, my husband does not want to give up his Spanish citizenship, which he may have to do. A number of European countries have started to change but they did not allow dual nationality. A lot of people could lie about that, but he does not want to give it up. I certainly do not want to give up my nationality.

When we were in the EU, we were in the comfortable position of being, as we used to describe ourselves, EU citizens; we could locate and meet our families in our respective countries with ease. Now that has changed and we accept that, but I do not quite understand why we do not accept that there is a settled status, where someone has lived in the country for 27 years, paid tax, national insurance and everything else—they have taken the responsibility of a citizenship—but for one reason or another do not want to take formal citizenship, and why that should preclude them from having the right to vote.

It is crazy that, as I mentioned, an Australian student who comes over for their OE can immediately apply for the right to vote. I would rather the debate focused on what entitles somebody to vote. We have talked about taxation, we have talked about responsibility, and I say that clear levels of residence should establish some basic rights, so that we treat people who live here equally, and when they contribute to the success of our country we should acknowledge that.

I come back to what the noble Lord, Lord Green, said. One of the issues his amendment ought to probe and cause us to think about is: what is a British citizen? He says that British nationals (overseas) are not included. We can make commitments suddenly; for example, we made a commitment to Hong Kong citizens who are BNOs because of the breach of an international agreement. I have no doubt that in future, as we have done in the past, we will want to protect our legacy. The noble Lord, Lord Desai, spoke about the legacy of British Empire, which of course we cannot ignore, and things have changed.

I welcome the fact that the noble Lord, Lord Green, has tabled this amendment but we need to consider it in the light of all the amendments we have had on the right to vote and what the qualifications are. I do not think we should ignore residency.

[Earl Howe (Con)]

My Lords, with Amendment 154 we return to the franchise. The purpose of the amendment, as the noble Lord, Lord Green, explained, is to require the Government to confine the voting rights of Commonwealth citizens to citizens of countries that grant British citizens the right to vote in their general elections. The effect of this would be to limit the franchise to Commonwealth citizens from countries where British citizens are entitled to vote in general elections.

I take this amendment seriously but perhaps I could clarify the position as it relates to Commonwealth citizens. First, it is important for me to point out to the noble Lord, Lord Wallace, in particular, that there is no blanket voting right in this country for Commonwealth citizens. The right to vote applies only to qualifying Commonwealth citizens: those who have leave to remain in this country or have such status that they do not require such leave. The noble Lord, Lord Green, asked me to expand on that definition. The definition of “Commonwealth citizen” is a broad term and is not limited to citizens from Commonwealth countries listed in Schedule 3 to the British Nationality Act 1981. It applies equally to other types of British nationality defined in Section 37 of that Act. This includes Hong Kong British nationals (overseas), British overseas citizens and British Dependent Territories citizens. It also includes British Overseas Territories citizens.

I acknowledge that the approach adopted in relation to Commonwealth citizens is different from that that we take towards other categories of foreign nationals. However, there are sound and well-rooted reasons for that difference. The rights of Commonwealth citizens to vote are long standing and reflect the historic connections and well-established links with the Commonwealth of this country and Her Majesty the Queen, as the noble Lord, Lord Desai, outlined.

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[Earl Howe (Con)]

The noble Lord, Lord Desai, is once again perfectly right.

Successive Governments and Parliaments since 1981 have concluded that the existing voting rights of Commonwealth citizens should not be disturbed, and it is on this basis that the Commonwealth citizens are granted the right to vote in UK elections.

I have enormous personal sympathy with the noble Lord, Lord Collins, and his husband in the situation he has outlined. The best answer I can give him is to refer back to the speech of the noble Lord, Lord Desai. As a country, we have found ourselves at various times in our history as members of different families of nations; for example, the family of EU member states and the family of Commonwealth nations. It is therefore perhaps unsurprising that the links and historic traditions, and hence entitlements, relating to each such family are different from one another. Our formal ties with the EU have been severed. Our ties with the Commonwealth endure. The weight of history plays a very considerable part in all sorts of aspects of our national life—

[Lord Collins of Highbury (Lab)]

The noble Earl says that our ties with the Commonwealth endure. I agree with the sentiment but the reality, as the noble Lord, Lord Desai, said, is that the relationship with Commonwealth countries has changed fundamentally, and is continuing to change. As Prince William said yesterday in his press statement—I have forgotten the exact words but it seemed relevant to me—the relations endure but Commonwealth countries change. The fact is that we have not changed what we define. With all these different British nationals as a consequence of our imperial legacy, we find it very difficult to define citizenship in that regard. That is why I come back to this fundamental point. I am not arguing that my husband has a special right as a former EU citizen. I am saying that someone who has lived here for 27 years, and paid tax and national insurance, should have the right to vote. It is residence that I am arguing for, which is what a number of noble Lords have been making the case for.

[Earl Howe (Con)]

My Lords, I understand that. It is clear that this is an argument that runs very deep. We may or may not return to it on Report but if there is anything else that I can add to the remarks that I have made, I will ensure that a letter is sent to all noble Lords who have taken part in this short debate.

In short, it is for reasons of history and because of the well-established ties that we in this country have with the family of nations that we call the Commonwealth that the Government have no plans to change the voting rights of Commonwealth citizens. Therefore, I am afraid we cannot support this amendment.

[Lord Green of Deddington (CB)]

My Lords, it has been a very interesting debate. I welcome the response of the noble Lord, Lord Wallace, on behalf of the Liberal Democrats and note the careful response from the Labour Front Bench. There are wider issues here, and I hope that both opposition parties will look at this and that the Government will, too.

The point that the noble Baroness, Lady Neville-Rolfe, made is a very important one. This loose end, to call it that, rather devalues the worth of UK/British citizenship. We need to sort it; this Bill is a very simple one, this could be a very simple amendment, and this is an opportunity to support it. I intend to bring it back at Report, and I hope that there will be a different reception to it. Meanwhile, I am happy to withdraw it.

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Moved by

[Earl Howe]

157: Schedule 8, page 151, line 5, leave out “or Northern Ireland”
Member’s explanatory statement
The reference in paragraph 12(4)(b) of Schedule 8 to a member of a local authority in Northern Ireland is unnecessary in view of how the qualification requirements in section 3(1) of the Local Government Act (Northern Ireland) 1972 operate.

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Moved by

[Earl Howe]

162: Clause 30, page 42, line 23, after “office” insert “or a relevant Scottish elective office”
Member’s explanatory statement
This amendment ensures that references to a candidate in clause 30 continue to include a candidate at an election for the office of member of the Scottish Parliament or member of a Scottish local authority, notwithstanding the amendments in Lord True’s name to clause 35 which narrow the general definition of “relevant elective office”.

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Moved by

[Earl Howe]

166: Clause 31, page 44, line 2, after “office” insert “or a relevant Scottish elective office”
Member’s explanatory statement
This amendment ensures that references in clause 31 to the holder of a relevant elective office continue to include the holder of the office of member of the Scottish Parliament or member of a Scottish local authority, notwithstanding the amendments in Lord True’s name to clause 35 which narrow the general definition of “relevant elective office”.

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Moved by

[Earl Howe]

169: Clause 32, page 45, line 37, after “office” insert “or a relevant Scottish elective office”
Member’s explanatory statement
This amendment ensures that “relevant election”, in clause 32, continues to include an election for the office of member of the Scottish Parliament or member of a Scottish local authority, notwithstanding the amendments in Lord True’s name to clause 35 which narrow the general definition of “relevant elective office”.

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Moved by

[Earl Howe]

173: Clause 35, page 46, line 24, leave out paragraph (b)
Member’s explanatory statement
This amendment removes member of the Scottish Parliament from the definition of “relevant elective office” for Part 5.

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Moved by

[Earl Howe]

177: Schedule 10, page 160, line 33, leave out paragraph 4
Member’s explanatory statement
This amendment omits amendments currently made by the Bill to sections 35 and 36 of the Local Government (Scotland) Act 1973.

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Moved by

[Earl Howe]

179: Clause 38, page 48, line 1, after “office” insert “or a relevant Scottish elective office”
Member’s explanatory statement
This amendment ensures that the definition of “candidate” continues to include a candidate at an election for the office of member of the Scottish Parliament or member of a Scottish local authority.

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Moved by

[Earl Howe]

181: Clause 40, page 49, line 25, leave out subsection (2) and insert—
“(2) The first condition is that the sole or primary purpose that the electronic material can reasonably be regarded as intended to achieve is a purpose within section 41.”Member’s explanatory statement
This amendment provides that the condition in clause 40(2) is met only where the sole or primary purpose that the electronic material can reasonably be regarded as intended to achieve is a purpose within clause 41.

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Moved by

[Earl Howe]

184: Clause 41, page 50, line 1, after “future candidates” insert “, in their capacity as such,”
Member’s explanatory statement
This amendment modifies the purpose in clause 41(2)(c) so that it refers to influencing the public, or any section of the public, to give support to or withhold support from a relevant candidate or future candidate only in their capacity as such a candidate or future candidate.

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Moved by

[Earl Howe]

189: Clause 42, page 51, line 14, at end insert—
“(4) The third condition is that neither the promoter of the material, nor the person on behalf of whom the material is published, has paid for the material to be published as an advertisement.(5) Subsections (4) to (6) of section 40 apply in relation to subsection (4) as they apply in relation to subsection (3) of that section.”Member’s explanatory statement
This amendment provides that clause 42 does not apply in relation to electronic material where the promoter of the material or the person on behalf of whom the material is published has paid for the material to be published as an advertisement.

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Moved by

[Earl Howe]

190: Clause 45, page 53, line 20, leave out “by a person (“A”)”
Member’s explanatory statement
This amendment, and the other amendments to clause 45 in the name of Lord True, clarify that the republication exception in clause 45 can apply where both the original publication and the later republication are carried out by the same person.

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Moved by

[Earl Howe]

195: Clause 46, page 54, line 25, at end insert—
“(4A) It is a defence for a person charged with an offence under subsection (1) in relation to the republication of electronic material to prove that—(a) the electronic material had previously been published,(b) the person reasonably believed that when it was previously published—(i) section 39 applied to it, and(ii) it was published in compliance with that section, and(c) it was not materially altered when it was republished.(4B) In subsection (4A)(c) the reference to electronic material not being materially altered includes a reference to the electronic material retaining—(a) the information within section 39(3), or(b) the access to such information,as a result of which the person reasonably believed its previous publication complied with section 39.”Member’s explanatory statement
This amendment inserts an additional defence into clause 46 in relation to the republication of electronic material. The defence applies where material has previously been published, the person charged with the offence reasonably believes that, at the time of the original publication, clause 39 applied to the material and it was published in compliance with that section and the material was not materially altered when it was republished.

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Moved by

[Earl Howe]

196: Clause 48, page 55, line 32, after “(referendums)” insert “where the referendum in question is a referendum to which Part 7 of PPERA applies and the electronic material is published during the referendum period (within the meaning of that Part) for that referendum”
Member’s explanatory statement
This amendment provides that the Electoral Commission is able to enforce the offence in clause 46(1) in relation to the publication of electronic material which can reasonably be regarded as intended to achieve a purpose within clause 41(9)(referendums) only in relation to a referendum to which Part 7 of the Political Parties, Elections and Referendums Act 2000 applies and where the material is published during the relevant referendum period.

Elections Bill

Earl Howe Excerpts

Lords Hansard - Part 2 & Committee stage
Monday 28th March 2022 Lords Chamber

[Lord Stunell (LD)]

My Lords, I think that I am now the 11th Peer to tell the Minister that the legislation is not strong enough when it comes to protecting our elections from the financial bigwigs. Indeed, there was a report from the Committee on Standards in Public Life last July. I hope that the noble Lord, Lord True, is back with us for the next stage of this Bill, but we have had some discussions with him about how many of those recommendations in last year’s report the Government believe that they have incorporated in this Bill. He has been a little bit coy about that; I might perhaps try to tempt the noble Baroness or the noble Earl to try a little harder on which of the 47 recommendations in last July’s report by the Committee on Standards in Public Life the Government believe that they have incorporated in this Bill, and which ones they are positively rejecting.

However, I want to speak about a preceding report from the Committee on Standards in Public Life in 2011. I thought that maybe if it had a 10-year run-in, there might be a better chance that we would achieve success in this Bill from some of its recommendations. Noble Lords will know that I am a member of CSPL, but I certainly was not in 2011—I was fulfilling a different role then. That report reviewed the case for having any kind of financial limits on elections. The top risk is the risk of capture of a political party by donors, capture of its policy, its practice and its personnel. Regarding policy, some of us have been frustrated for a long time by the inability of successive Governments to get to grips with tax havens around the world. I am sure that it is completely unconnected that a number of donors live in tax havens, but it could be something which the public would be suspicious about, even if we are far too knowing to believe that a party might be influenced by that.

What about the difficulty in bringing offshore banking onshore? Could that have anything to do with where donors are starting from and where they are banking? What about getting a beneficial ownership register of all companies and making Companies House work properly? Again, we find very little progress, which is very much in the interests of people who make big donations to political parties.

So policy can be affected, perhaps by slowing it down or perhaps by driving it slowly into the sand. Some of us think that this Bill is a victim of that, with so many proposals not grasped but avoided. My noble friend Lord Clement-Jones gave some powerful evidence about the way in which there has been a failure, in this Bill, to confront electronic campaigning, as has been recommended to the Government by many bodies and persons.

There is a risk of capture of policy and of practice, and that is in how government acts and what happens. I point to the free market for high-end property purchasing in London, which has suddenly come to a grinding halt, at least as far as some purchasers are concerned. Obviously, it serves the economy of the UK fine to sell hugely overpriced houses and leave them empty, while various dictators in the former Soviet Union sit on their extracted wealth, but it is not all about foreign donors.

I bring to your Lordships another situation where government practice has been distorted by motives that are not necessarily in the best interests of public service. I refer to the company PPE Medpro, reported in the Guardian this morning as having secured a contract for the supply of 25 million sterilised surgical gowns during the pandemic. Those gowns were bought by PPE Medpro for £46 million and sold to the Government for £122 million. In this case, the money is going in the opposite direction to the one we have been talking about for most of this group of amendments. According to the Guardian report, it turns out that those sterilised surgical gowns were, in fact, unsterilised; they were not double-wrapped and they a had false or misleading BSI test number on them. I understand the Department of Health is trying to get its money back, but the mindset that led to that fiasco unfolding is part of the capture, by big donors and big-donor thinking, of a political party.

Then there is personnel—policy, practice and personnel. It is almost embarrassing to say it, but recommendation 19 of the 2011 report of the Committee on Standards in Public Life was that there should be full publication of the criteria for political appointments to the House of Lords. I plead guilty as a political appointment to the House of Lords, as probably should a number of other noble Lords here, but it makes the point that there is an unhealthy connection between money, donations and preferment. It is not simply the House of Lords that is in scope.

Amendment 212DA in my name repeats two of the recommendations from that 2011 CSPL report. In fact, the noble Baroness, Lady Bennett of Manor Castle, quoted from it but, for the purposes of time, left out some words beyond the end of that quote. Recommendation 1 states that there should be a limit of £10,000, which is the figure I have included in this amendment. There should be a democracy of donors, as was spelled out by the noble Baroness, Lady Bennett.

Recommendation 6 of that report figures in the second part of my amendment, in that there should be a reduction in national election spending limits of 15%. That was from the CSPL in 2011; the election spending limits had been in place for five years, at that time, and the committee thought they should be reduced by 15%. Fair enough—they have not been increased, but it has now been proposed that they should be increased by over 60%. Far from the 15% reduction that the CSPL thought was sensible 10 years ago, the Government now propose that they are increased by 60%.

I would put in a case for CSPL’s proposals and recommendations and therefore for my amendment. I also strongly support the other amendments that have been put forward. Perhaps the most powerful—not to decry any of the others—is what I have chosen to call the Rooker-Butler amendment, Amendment 212G, which should put the wind up every political party if it comes into force. It proposes that there should be a “risk assessment” for all donations over £7,500. It seems to me that, as a basis for proceeding further, it can hardly be beaten. But I cannot leave out the amendment of my noble friend Lord Wallace and the noble Baroness, Lady Hayman, that would capture “unincorporated associations” as well—this is recommendation 10 of the Committee on Standards in Public Life’s report of 2011.

I finish by simply saying that the Government may or not be ready to take on the recommendations of the Committee on Standards in Public Life’s report from last year, but, for goodness’ sake, will they please agree to take on those that it made 10 years ago and that have still not been implemented?

[Earl Howe (Con)]

My Lords, this group of amendments brings us to the subject of political donations, and I am grateful for the contributions from all sides of the House on this topic. I have listened carefully and noted the strength of feeling that clearly exists around it.

I will start with a word of general reassurance: the integrity of our political system is of the utmost importance to Her Majesty’s Government and, without doubt, all parliamentarians—the noble Lord, Lord Butler, was quite right in what he said on that score. Therefore, it is vital that the rules on political donations are kept continually under review. We must ensure that they continue to provide an effective safeguard to protect that system integrity.

Therefore, it is right that, as a matter of principle and practice, UK electoral law already sets out a stringent regime of controls on political donations to ensure that only those with a legitimate interest in UK elections can make political donations—and that political donations are transparent. This includes registered UK electors, registered overseas electors, UK-registered companies that are carrying out business in the UK, trade unions and other UK-based entities. Donations from individuals not on the UK electoral register, such as foreign donors, are not permitted. There is only a very limited exception to this, whereby, for political parties registered in Northern Ireland, permissible donors also include Irish citizens and organisations, provided that they meet prescribed conditions. This special arrangement reflects the specific context in Northern Ireland.

In order to address the tabled amendments and contributions as fully as I can, I propose to frame my response thematically. I turn first to Amendments 198,199, 204, 212D and 212E, all of which make reference to alleged “foreign donations”. I am afraid that this group of amendments does not find favour with the Government because they seek to remove the rights of overseas electors to make political donations as well as to remove the right to make donations from non-UK nationals who are registered to vote in the UK. Overseas electors are British citizens who have the right to vote; they are important participants in our democracy, as are non-UK nationals on the electoral register. We intend to uphold the long-standing principle that, if you are eligible to vote for a party, you are also eligible to donate to that party. Amendments 198, 199, 204 and 212D would ignore that principle by removing the rights of overseas electors entirely.

I must repudiate the suggestion of the noble Baroness, Lady Hayman of Ullock, that this is all about increasing political donations to the Conservative Party. The Bill delivers the Government’s manifesto commitment to remove the arbitrary 15-year limit on the voting rights of British expatriates, broadening their participation in our democracy.

The issues at stake here are matters of principle. Supporters of many parties back votes for life. The Liberal Democrats pledged in their two most recent manifestos to scrap the 15-year rule. In addition, one of the most passionate and high-profile campaigns for votes for life has been led by Harry Shindler, who lives in Italy and is 100 years old, a World War II veteran and the longest serving member of the Labour Party. I say to the noble Lord, Lord Sikka, that this measure will not open the floodgates to foreign political donations. Registered overseas electors are eligible to make political donations as important participants in our democracy. It is only right that they should be able to donate in the same way as other UK citizens registered on the electoral roll. I say again: the changes within this Bill will simply scrap the arbitrary 15-year limit on these rights.

[Lord Wallace of Saltaire (LD)]

Would that be without any cap on the size of the donation offered? Would the Minister consider that a cap on the size of a donation offered by, for example, Sir Philip Green might be appropriate?

[Earl Howe (Con)]

I will come to the subject of caps on donations in a moment.

On Amendment 212E, the noble Lord, Lord Rennard, recently tabled a Question for Written Answer about the uncommenced provision in the 2009 Act. This provision, Section 10, refers to residence and domicile for income tax purposes as a criterion for permissible political donations. Although a response was issued to him by my noble friend Lord Greenhalgh on 14 March, I hope that it will be helpful if I repeat it briefly for the benefit of the Committee.

The Government have no current plans to bring into force the uncommenced provision, Section 10 of the Political Parties and Elections Act 2009, regarding donations from non-resident donors. There is a very good reason for this: the provision is not workable given that an individual’s tax status is subject to confidentiality. It may therefore be difficult or even impossible for the Electoral Commission, political parties and other campaigners to accurately determine whether a donor meets the test set out in Section 10.

Furthermore, as a matter of principle, taxation is not connected to enfranchisement in the UK. If a British citizen is able to vote in an election for a political party, they should be able to donate to that political party subject to the requirements for transparency on donations. There is clear precedent here. Full-time students are legally exempt from paying council tax but still have the right to vote. Likewise, those who do not pay income tax rightly remain entitled to vote. For these reasons, the Government cannot support these amendments.

The other key theme that this debate has focused on is that of donations made by companies or other entities such as unincorporated associations. I will address Amendments 197, 198, 200, 210, 212 and 212G in the remarks that follow. As I have said before, only those with a legitimate interest in UK elections can make political donations, such as UK-registered companies which are carrying out business in the UK, trade unions and other UK-based entities. There is only a very limited exception to this, whereby, as I indicated earlier, for political parties registered in Northern Ireland permissible donors are a wider category.

The law is already clear that, if a company wants to donate to a party or fund a campaign, it must be a permissible donor. The recipient of a donation is responsible for checking that the donor is eligible; that is to say that it is registered in the UK and carrying out business in the UK. The recipient must also report the relevant donations to the Electoral Commission quarterly, and weekly during election periods. To ensure transparency about party funding, donation reports are published by the Electoral Commission on its online database.

Unincorporated associations are permissible donors only where they carry on business or other activities wholly or mainly in the United Kingdom and where their main office is in the UK. Further to this, any unincorporated associations making political contributions of more than £25,000 in a calendar year must notify the Electoral Commission and are subsequently subject to various reporting requirements relating to their own funding. Members’ associations, many of which are unincorporated associations, are separately regulated as regulated donees and must report on donations and loans that they receive.

Amendment 197 would introduce a new obligation on unincorporated associations to take all reasonable steps to check whether donations they receive intended for political purposes come from a permissible donor. At first glance, “all reasonable steps” appears perfectly reasonable. However, this would represent a significant change for unincorporated associations which, as I outlined previously, are already subject to significant reporting requirements. It singles them out from other types of donors and puts them instead closer to the level of political parties in their due diligence obligations. This could mean many voluntary groups and local sports clubs and societies all facing a significant extra due diligence cost simply because they fall into an unlucky category. That does not strike me as fair, and I would be concerned about the possible chilling effect on democratic participation of those groups.

Amendment 198 is an attempt to restrict donations from organisations. As drafted, it would exclude UK-based companies with fewer than five employees from making donations. Furthermore, it is unclear how one would determine who has “significant control” of an unincorporated association, as their governance structures are not regulated in the same way as other legal entities. Although I am sure this was not the intention, it demonstrates quite well the risk of serious unintended consequences if amendments which place restrictions on who can participate in our democracy are made with haste and without consultation. Furthermore, Amendment 198 would make it an offence for an ineligible company to even offer a donation, regardless of whether it is accepted and regardless of whether it was aware the donation it was offering is impermissible. This is unnecessary.

Donations from impermissible donors are already illegal, and it is the political parties and campaign groups receiving the money, the ones which better know and understand this area of law, which are accountable and responsible for checking, returning and reporting impermissible donations. In addition—this point has been highlighted previously—it is an offence for a donor knowingly to facilitate the making of an impermissible donation.

I am grateful to my noble friend Lord Hodgson for his Amendment 210, which would prohibit donations from individuals or companies that hold public contracts with a value equal to or exceeding £100,000. The complexities of procurement frameworks are slightly beyond the scope of this debate, but let me say that, while well-intentioned, it is not clear how this amendment would operate in practice. Seemingly, there is no limitation on a person making a donation to a party prior to entering into a contract with a public body, and it is unclear whether the prohibition extends beyond the lifetime of the contract and, if so, for how long. It is important to note that the existing legislation already provides for publication of donations to political parties, regulated donees and recognised third-party campaigners, therefore enabling any discerning citizen and our free press to scrutinise any large donations.

I also thank the noble Lord, Lord Sikka, for his Amendment 212. As he explained, the intention of this amendment is to prevent shell companies being used to make large donations. Similar concerns on source of donations underpin Amendment 200 and the substantial Amendment 212G from the noble Lords, Lord Rooker and Lord Butler, which would introduce requirements for registered parties to carry out risk assessments and due diligence checks on donations.

However, as I have already outlined, there are strict rules requiring companies making donations to be incorporated and carrying out business in the UK. Existing rules also prohibit circumventing the rules through proxy donors. That is on top of a legal requirement for political parties and other recipients to conduct permissibility checks and report to the Electoral Commission.

The principle of strengthening the system to provide greater levels of assurance on the sources of donations to ensure they are permissible and legitimate is important. We take seriously the risk of donors seeking to evade the rules. Indeed, the Government recently set out their final position on the reforms to the corporate registration framework, ahead of introducing legislation, in the Corporate Transparency and Register Reform White Paper.

The introduction of mandatory identity verification for those incorporating and filing with Companies House will be essential for making information on the companies register more reliable. It will mean that those with the intention of fraudulently misusing the UK corporate registration framework will have their activities traced and challenged. For example, all directors of UK limited companies will be required to verify their identity in order to be registered, and overseas companies will be required to verify the identity of all their directors. This, in combination with a new power for the Companies House registrar to proactively pass on relevant information to law enforcement and other public and regulatory bodies, including the Electoral Commission, will help ensure that any company making political donations is properly trading in the United Kingdom.

However, we do not want to impose disproportionate legal obligations that hinder the ability of parties and other campaigners to generate funds against the cost of carrying out checks on donations to ensure that they come from permissible sources. To do so would risk it not being cost effective for parties to accept smaller donations and therefore exclude some people from being able to participate in our democracy in this way. The current rules are proportionate and achieve this balance.

[Lord Rooker (Lab)]

I am listening carefully to the Minister. Going back, say, a decade before the Government started to tighten up the anti-money laundering rules, companies, accountants, company secretaries and company lawyers all said, “Our professional obligations and institutions require us to do all these checks.” But they were not doing them, hence the Government had to bring in some anti-money laundering rules. Why are political parties any different?

[Earl Howe (Con)]

My Lords, I hope I have already explained how the Government intend to legislate in the future to create greater transparency of companies. As I said at the beginning, all we can do is keep the rules under review. I am suggesting that in this particular area, the balance is about right.

[Lord Stunell (LD)]

I understand that the Government have a point of view on this, but it is clearly in contradiction to that of the Committee on Standards in Public Life, the Electoral Commission and others. Can the Minister expand on his reasoning for rejecting their proposals?

[Earl Howe (Con)]

I will answer the noble Lord’s point about the Committee on Standards in Public Life in a moment, if he will allow. First, I turn to Amendment 200, jointly tabled by the noble Lord, Lord Wallace, and my noble friend Lord Hodgson, which seeks to introduce new restrictions on donations. The amendment seeks to confer additional powers on the Electoral Commission to identify donations that the commission considers to be a risk to national security or that do not meet a “fit and proper test”, to be determined by the Secretary of State.

This is not the commission’s role or area of expertise, and it would therefore be entirely inappropriate to give it this responsibility to assess risks to national security. The commission is simply not equipped to make some of the judgments proposed by this amendment. The commission has said of this proposal that it

“would be a significant change to our current remit and is not a role we are seeking, as the benefits of this proposal over and above the work of the established security agencies are not clear”.

Put simply, countering foreign interference is the responsibility of the Government, the appropriate law enforcement agencies and the intelligence services, not the Electoral Commission.

The Government already work closely with a range of partners, including the Electoral Commission, to maintain the integrity of democratic processes and take the necessary steps to tackle the risk of foreign interference. The cross-government Defending Democracy programme brings together capabilities and expertise from across departments, security and intelligence agencies and other partners to ensure that democracy remains open, vibrant and secure. In support of this, the Government have set out their intention to bring forward separate legislation to counter state threats. This will give our security services and law enforcement agencies the additional tools they need to tackle the evolving and full range of state threats.

The amendment would also require the Electoral Commission to determine whether a donor meets a “fit and proper” test in respect of the integrity and reputation of the person, based on criteria set out by the Secretary of State. It is our view that the rules are already clear about who is a permissible donor. Beyond this, any further judgments about the appropriateness of receiving a particular legal donation are for the recipient of the donation to judge, and for those recipients to justify their decision through scrutiny enabled by the transparency in our system. It should not be for the Electoral Commission to make these judgments on behalf of others.

--- Later in debate ---

[Lord Collins of Highbury (Lab)]

Would the noble Earl acknowledge that trade unions are different? They are highly regulated and the law was changed to ensure that every individual who makes a contribution to a political fund has to approve it. It is contracting in now—a change this Government made without consultation with other parties. So to put trade unions in the category of a millionaire or a corporate company is totally wrong.

[Earl Howe (Con)]

My Lords, I am not casting aspersions on trade unions. I was seeking to suggest that making them a unique case, as the amendment seeks to do—

[Lord Collins of Highbury (Lab)]

I have explained why they are a unique case: you have already changed the law without consultation with any party. You changed the rules, forcing individual trade union members to contract in to their political funds. Their political funds are highly regulated and highly controlled, and were subject to a change in the law—so they are different.

[Earl Howe (Con)]

I do not contradict the noble Lord in any respect as to what he said about trade unions. I say again that I cast no aspersions on trade unions or their practices at all. I am simply saying that it seems unfair and undemocratic to have this distinction made in the way the noble Baroness seeks to do in her amendment.

Fundraising is a legitimate part of the democratic process. There is no cap on political donations because parties, candidates and other types of campaigner have strict limits on what they can spend on regulated campaign activities during elections.

The other amendment in the noble Baroness’s name—

[Baroness Bennett of Manor Castle (GP)]

Before the Minister goes on to the next amendment, I asked whether he agreed that there should be any limit. If we imagine an election campaign, one party’s spending limit is about £20 million. Does the Minister think it appropriate that one person can donate £20 million for an entire election campaign? What does he think that would do to our democracy?

[Earl Howe (Con)]

My Lords, there are two issues there: one is the question that the noble Baroness seems to be asking, which is whether there should be a limit on donations, and the other is whether there should be a limit on spending. There is a limit on spending in general elections, as she well knows. If she is asking whether I think there should be a cap on donations, I have to say that I do not.

[Baroness Bennett of Manor Castle (GP)]

Sorry, perhaps I was not clear. To put it another way, should there be a maximum percentage that one person can donate to one party’s campaign? If a campaign is funded to the maximum spending limit by one person, it is one person’s campaign. Does the Minister think that would be appropriate?

[Earl Howe (Con)]

That is a highly hypothetical question. I would be happy to give it consideration. For the moment I have to say that the answer is no, but I will reflect on it.

The other amendment in the noble Baroness’s name, Amendment 212B, seeks to place new obligations on donors to report donations to the Electoral Commission where the aggregate total for the year is over £5,000. Yes, there should be transparency around any significant amount of money funding parties and election campaigns, but that does not mean putting the burden on donors. It is for political parties and candidates—the recipients of the donations, who are familiar with the rules—to keep accounting records and report donations over the relevant thresholds to the Electoral Commission. Placing any unnecessarily bureaucratic responsibility on donors such as individual citizens could lead to a chilling effect and discourage people from making donations.

Amendment 212DA, tabled by the noble Lord, Lord Stunell, seeks to cap donations to political parties at £10,000 per calendar year. Perhaps inadvertently, it would require that every penny in a collection box be recorded and attributed to someone, effectively spelling an end to small donations. Even more significantly, the Government cannot, on principle, support caps on donations as this would only lead to taxpayers footing the bill for the inevitable funding shortfall. There is absolutely no public support for expanding the level of public funding already available to political parties. Public funds should be focused on delivering world-class public services and levelling up communities across our country.

The noble Lord asked about the recommendations in the report from the Committee on Standards in Public Life. The Government responded to the report published by the CSPL on regulating election finance in September last year. The Elections Bill already contains measures that closely link to recommendations made in that report, such as the new requirement on political parties to declare their assets and liabilities over £500 on registration, and a restriction of third- party campaigning to UK-based or otherwise eligible campaigners. However, as the Government response stated, the recommendations in the report deserve full consideration, and more work must be done to consider the implications and practicalities, which, I hope the noble Lord will acknowledge, are very considerable.

In conclusion, controls on electoral funding and transparency of electoral funding are a key cornerstone of the UK’s electoral system and contribute to a healthy democracy. UK electoral law sets out a stringent regime of donations controls to ensure that only those with a legitimate interest in UK elections can make political donations and that political donations are transparent. The Government absolutely recognise the risk posed by those who wish to evade the rules on donations. That is why there are existing provisions which explicitly prohibit money being funnelled through permissible donors by impermissible donors, and why it is an offence for donors and campaigners to purposefully evade the rules.

It is right that voters and organisations with a legitimate interest in UK elections be able to donate to political parties, candidates and campaigns. Our democracy is strengthened by people donating to campaigns that they believe in. I am, of course, aware that stories about political donations are never far from the newspapers, but rather than being indicative of a broken system, I firmly believe that this is a sign of the system working. The checks that parties and other campaigners are required to carry out and the reports published by the Electoral Commission allow the press and the public to scrutinise political donations. It is very important to balance the need for parties and other campaigners to generate funds against the cost of actually carrying out checks on donations to ensure they come from permissible sources. The current rules are proportionate and achieve that balance. I hope that, on that basis, noble Lords will feel able not to move their amendments when they are reached, and that the noble Baroness, Lady Hayman, feels able to withdraw her amendment.

[Baroness Hayman of Ullock (Lab)]

My Lords, I thank the Minister for his response to this large group of amendments. In responding to my amendment, he said that there was a Conservative Party manifesto commitment to extend the franchise for overseas electors. My amendment was not about that manifesto commitment; it was about the donations that could then come in through that action. I was not saying that that should not happen. The amendment was specifically related to donations, and that is what I want to come back to now.

I think we can say that we disagree as to whether excessive foreign donations being allowed to come into our politics is a good thing and whether there should be a cap on them. If the Government feel that stopping overseas donations is not an option, in my opinion, we should certainly look at whether we can cap the amounts.

I agree strongly with the first thing the Minister said: the integrity of our electoral law is of the utmost importance. This is why there has been so much concern in this debate over whether that integrity is being undermined by the way in which political donations currently work. I know that the Minister said that the current laws manage this, but it is really disappointing that he does not accept the great concerns that have been raised about how donations can ultimately buy political influence. We must be very careful in our country that we do not tip into the way in which other countries have operated when donations get very large. I just wish that the Government would accept that there is a problem and that it needs to be nipped in the bud. This is an opportunity to legislate for that.

I will finish by saying that a lot of strength of feeling on this issue has been expressed in Committee today. I am sure that we will return to this on Report but, in the meantime, I beg leave to withdraw the amendment.