Elections Bill (Eleventh sitting)

Fleur Anderson Excerpts

Committee stage
Tuesday 26th October 2021 Public Bill Committees

[Kemi Badenoch]

Clause 22 restricts all third party campaigner spending during a regulated period to entities eligible to register with the Electoral Commission, as listed in section 88 of the Political Parties, Elections and Referendums Act 2000, and to overseas unincorporated associations with the requisite UK connection.

Currently, foreign third party campaigners can legitimately spend on UK elections underneath the recognised third party campaigner registration thresholds, which are £20,000 during a regulated period in England, and £10,000 in Scotland, Wales and Northern Ireland. This activity becomes illegal only once the thresholds are passed. It is important that only those with a legitimate and fair interest in UK elections are able to influence the electorate.

Clause 22 will remove the scope for any legal spending by foreign third party campaigners underneath the registration threshold but above a £700 de minimis. The inclusion of such a de minimis provision will balance the desire to prohibit spending by foreign entities without criminalising low level, potentially unintentional breaches below £700, which are unlikely to adversely impact an election.

It is worth noting that only individual overseas electors are permitted to register as third party campaigners with the Electoral Commission. In order to support overseas electors, who are important participants in our democracy, to work together, the clause will permit them to form unincorporated associations to campaign if they spend below the new lower tier registration threshold of £10,000, set out in clause 24. That is in line with the current situation, and it is only right that such electors should be able to spend in UK elections as they can now. Under our proposals, unincorporated associations will meet the “requisite UK connection” requirement to incur spending in UK elections only if they are composed solely of registered overseas electors.

To conclude, these provisions make necessary and proportionate changes to ensure that spending at UK elections is only permitted, above a £700 de minimis, for those with a legitimate interest in UK elections. They help reduce the risk of illegitimate foreign influence in UK elections.

Question put and agreed to.

Clause 22 accordingly ordered to stand part of the Bill.

Clause 23

Third parties capable of giving notification for purposes of Part 6 of PPERA

[Fleur Anderson (Putney) (Lab)]

I beg to move amendment 71, in clause 23, page 33, leave out lines 6 to 10.

This amendment would leave out the powers for ministers to remove categories of permitted campaigner while leaving in place their power to add new categories of campaigner.

[The Chair]

With this it will be convenient to discuss amendment 72, in clause 23, page 33, line 10, at end insert—

“(11) The power to make provision by virtue of paragraph (9)(b) or (c) is exercisable only on, and in accordance with, a recommendation of the Electoral Commission.”

This amendment would require the Government to obtain the recommendation of the Electoral Commission before removing or varying categories of permitted campaigner.

[Fleur Anderson]

It is a pleasure to serve under your chairship, Mr Pritchard.

Part 4 and its provisions are a brazen attack on our democracy. They will undermine the ability of civil society organisations, charities and trade unions to engage and campaign in our democracy—that is why they are so controversial. We need to spend additional time considering them, and I hope that all Committee members will take up our amendments, which are reasonable, represent an improvement and come very much from civil society.

The provisions in question will infringe the rights of working people to organise politically or campaign on pay or rights at work, and they risk silencing the very people who got our country through the pandemic. They are an unnecessary and disproportionate reaction. They will not add to the integrity of our elections, but only have a chilling effect on democracy.

In a free and open society, democratically elected Governments are scrutinised by Opposition parties and civil society, often campaigning on single issues. Part of what makes democracy healthy is the freedom for civil society to challenge those in power, which the Government are seeking to curtail with the clause and which we seek to amend with amendments 71 and 72.

The clause will allow a Cabinet Office Minister to define who may legally campaign at elections, giving them the power to amend or remove the types of organisations that are allowed to spend as little as £700 on election campaigning across the whole UK. It also doubles as the list of organisations that are allowed to register with the Electoral Commission and spend more than £10,000 at elections. The Minister may now be able to ban charities that are critical of Government cuts to foreign aid, ban local community groups protesting against planning reforms, ban unions that might work with a political party for workplace rights, and ban anyone convicted of a public order offence. In conjunction with the Police, Crime, Sentencing and Courts Bill, which makes it much easier to criminalise protesters—even a protest involving one person—this would disproportionately impact on the Government’s most vocal and active opposition, who may have already been criminalised for protesting. That is a terrifying prospect and, as far as I can see, quite unprecedented.

The Bill is not about influence. It is a way for the Government to stifle their critics before elections and cripple them during elections. Giving the Government such power over their opposition during elections is completely at odds with free and fair elections. It is deeply inappropriate and offensive to our democratic tradition. Unions and other campaign organisations have a right to engage in our democracy and already face a highly regulated landscape, which is why the clause is unnecessary.

[Patrick Grady (Glasgow North) (SNP)]

The hon. Lady says this is the Government stifling their opposition. Actually, civil society, trade unions and charitable organisations are all our opposition, because they put equal pressure on all candidates and parties that stand in an election, as they want to achieve policy change. Obviously, some organisations are more closely affiliated with political parties than others are, but many of them are party-neutral in that sense, because they want to drive a policy change rather than see one party be successful in any given constituency or general election.

[Fleur Anderson]

I absolutely agree with the hon. Gentleman. It is a range of political opinions and opinions about different issues that are not necessarily the main bread and butter of political parties, but which are so vital, especially in an election time, when we are talking about the future of such a wide range of policy decisions that are about to be made on behalf of the electorate. Unless we accept the amendment, we face the risk of some groups, individuals, community organisations and single-issue campaigns being unnecessarily banned from taking part in the electoral process. There will be scandals ahead unless we accept the amendment.

Labour’s amendments 71 and 72 seek to temper the clause. Amendment 71 will delete the unprecedented and dangerous powers to remove categories of permitted campaigners while respecting the Government’s stated intention to future-proof electoral law by allowing the addition of novel categories of campaigner. It is flexible and can still respond to new issues and campaigns as we go forward, but it does not have the draconian and heavy-handed influence of only the Minister choosing who is on the list. Amendment 72 requires the Government to obtain the recommendation of the Electoral Commission before removing or varying categories of permitted campaigner, and I hope all Members will agree that it is a very reasonable amendment.

Both amendments are necessary to prevent a Minister from having the unprecedented ability to interfere in a free and fair election. They also have significant civil society support, including from Bond—British Overseas NGOs for Development—which represents over 400 organisations, ranging from small specialist charities to large, international non-governmental organisations. It has many supporters in all our constituencies, with a worldwide presence, and believes that:

“This is an extremely broad power which could be open to abuse by future governments.”

I would add that it could be open to abuse by the current Government. Bond has urged that it be amended, and so do I.

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[Kemi Badenoch]

Clause 23 builds directly on the requirements put in place by clause 22. As I have mentioned, the aim of clause 22 is to remove the scope for foreign entities to spend above a £700 de minimis amount during the regulated period running up to an election by restricting all third party campaigner spending at that time to spending by entities that are eligible to register with the Electoral Commission, as in section 88 of PPERA.

However, we are conscious that legitimate categories of third party that are not on the list of categories of campaigners may emerge in future, and clause 22 would significantly restrict their ability to campaign if they could not be added to the list quickly. For that reason, clause 23 makes provision for the amendment of the list of eligible categories of third party campaigners in PPERA. It will allow the Government to add to, remove items from, or otherwise amend the list of categories of third party campaigners as necessary. Any such changes will be subject to parliamentary scrutiny via the affirmative procedure. These provisions will ensure that we can be responsive to the emergence of new groups, and that eligible categories of third party are not unduly restricted from campaigning and participating in our democracy in future. I therefore urge the Committee to allow the clause to stand part of the Bill.

Question put and agreed to.

Clause 23 accordingly ordered to stand part of the Bill.

Clause 24

Recognised third parties: changes to existing limits etc

[Fleur Anderson]

I beg to move amendment 76, in clause 24, page 33, line 23, at end insert—

“(5C) Registered charities and Community Interest Companies may act as a recognised third party subject to the lower-tier expenditure limits without the requirement to give the Electoral Commission notification under section 88 of PPERA.”

This amendment would exempt registered charities and Community Interest Companies from the notification and registration requirements of Clause 24, which introduces a new lower tier registration for third party campaigners who spend more than £10,000 on controlled expenditure anywhere in the UK.

[The Chair]

With this it will be convenient to discuss the following:

Amendment 77, in clause 24, page 33, line 23, at end insert—

“(5C) Registered charities and Community Interest Companies (CICs) which intend to incur election expenditure within the lower-tier expenditure limits may provide the Electoral Commission with their charity or CIC registration number, and the Commission—

(a) shall treat that information as sufficient for the charity’s or CIC’s notification and registration for electoral purposes under section 88 of PPERA, and

(b) may collect any information the Commission requires about the charity or CIC from the Charities Commission or Companies House respectively.”

This amendment seeks allow charities or Community Interest Companies who wish to campaign at elections within the lower tier of expenditure and which are already subject to transparency requirements to avoid the additional compliance burden arising from Clause 24.

Amendment 90, in clause 24, page 34, line 22, at end insert—

“except where the third party is a charity which is registered with the Charity Commission of England and Wales under section 30(1) of the Charities Act 2011 or is exempt from registration under section 30(2)(a), (b) or (c) of the Charities Act 2011 or is registered as a community interest company under section 36B of the Companies (Audit, Investigations and Community Enterprise) Act 2004;”.

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[Fleur Anderson]

I am pleased to speak to amendments 76 and 77, which would significantly improve the Bill. Amendment 76 would exempt registered charities and community interest companies, or CICs, from the notification and registration requirements of clause 24, which introduces a new, lower-tier registration for third party campaigners who spend more than £10,000 on controlled expenditure anywhere in the UK. Our amendment 77 seeks to allow charities or CICs that wish to campaign at elections within the lower tier of expenditure, and that are already subject to transparency requirements, to avoid the additional compliance burden arising from clause 24.

The Electoral Commission says on part 4:

“Some of the changes in Part 4 of the Bill would increase transparency for voters about who is spending money campaigning at elections and how they are funded.”

So far, so good. It goes on:

“But they would not increase transparency about how much is being spent and on what. The added complexity of these changes could deter some from campaigning at elections, or restrict the type of campaigning they can spend funds on. Voters could therefore receive less information about candidates and parties, and hear from a narrower range of sources.”

The Electoral Commission continues:

“Third party campaigners are individuals and organisations that campaign in the run-up to elections but do not stand as political parties or candidates. These are a vital part of a healthy democracy and play a significant role in providing voters with information. It is important that a broad range of campaigners can take part in public debate ahead of UK elections and referendums so voters hear a diversity of voices.”

The commission states:

“These changes would add new requirements to laws which many campaigners have said are already complex and hard to understand.”

Again, these changes are unnecessary and will have a chilling effect on democracy, and especially on registered charities and CICs. That is why they are the focus of our amendments. The Bill risks tying organisations up in red tape and stifling democratic engagement by civil society organisations, which are concerned about breaking the rules.

I was working in a charity when the gagging, or lobbying, Act—the Transparency of Lobbying, Non-Party Campaigning and Trade Union Administration Act 2014 —was introduced. I very often found myself sitting around with my colleagues asking, “Can we now do this? Can we now say that? Can we now work with them? What can we do?”. Our charity did not have enough money to seek a large amount of legal advice. The law was also quite unclear, so to avoid falling foul of it, we would step back and not do many things that would have been perfectly within the law, which had been changed, just in case they were not.

The provisions we are discussing extend those powers. Indeed, I see this as a trilogy, comprising the lobbying Act, the Trade Union Act 2016 and this Bill, which altogether stifle democracy and free speech, and stop really valuable campaigners campaigning about issues that we politicians need to hear about.

I spoke to the National Council for Voluntary Organisations, which is concerned about this issue. It said that it was unconvinced by the argument in favour of the lower threshold in general terms. Has the Minister met the NCVO to discuss its concerns? The Government have framed the issue in terms of increased transparency, but it was not clear to the NCVO, which represents charities across the country, that there would have been a significant impact. It cannot see that there will be more transparency.

The NCVO asked the Minister’s predecessor to look at whether charities could be exempted from the lower threshold. Its argument is that when campaigning is done by a registered charity, people can in any case look it up on the register and see who its trustees are, how it is funded and so on. The transparency point therefore does not apply in the same way, because charities are already transparent and highly regulated. This new tier will inevitably result in smaller organisations being unable to engage in democracy. Charities and community groups that might not have the policy and legal expertise of larger organisations and that, as I have said, will fear running afoul of the rules may decide—in fact, will decide—that it is not worth the trouble to spend a relatively small sum, or they might be put off by appearing on a public register.

[Aaron Bell (Newcastle-under-Lyme) (Con)]

The hon. Lady is obviously making a powerful speech, but the primary purpose of charities, which we give tax relief to, should surely be supporting good causes, not campaigning in elections.

[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.

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[Patrick Grady]

The Minister said in her previous speech that the measure was partly intended to avoid a situation arising comparable to the US super-PACs that spend millions of dollars with very little regulation. It is impossible under current UK electoral law for a situation anything like that to arise in this country. The notion that small local charities that want to lobby their local candidates to stop the closure of a swimming pool, a school or a library are somehow comparable to the dark money seen in other parts of the world, which has been reported as potentially having an increasing impact in this part of the world, is completely extreme.

It is not impossible that there will be a general election in February 2022, because as the Minister has admitted, the Prime Minister will have that option when the Fixed-term Parliaments Act 2011 is finally repealed. As soon as that happens, the next election campaign will effectively start, which is delightful for all of us because of the rare snap elections that we have experienced twice in the last three years.

Under the terms of the clause, if an election came that early it might be the case that some organisations would have already reached the threshold without knowing it, not least because they are in the process of holding us to account for pledges that we made in 2019 that they have not had much opportunity to lobby on. Organisations that are organising a big lobby day—there are several coming up—that involve a lot of logistics such as the hire of the hall and the transportation of people, and that are related to pledges that Members may have made at a general election and therefore could reach the threshold, may find that they are already in breach without knowing it.

It is an awkward clause that relates to the overall package of reform that the Government are bringing in through the Bills that we have mentioned throughout the progress of this Bill, including the repeal of the 2011 Act, the Police, Crime, Sentencing and Courts Bill, and the other aspects of electoral and political law that are being amended. The Minister is falling back on the idea that it affects everyone, but that does not really answer that point. In a sense, it does affect all of us and we may already be in the run-up to a general election campaign but we just do not know because of the power grab that is being exercised by the Conservative Government, of which this clause is another example.

Question put and agreed to.

Clause 24 accordingly ordered to stand part of the Bill.

Clause 25

Joint campaigning by registered parties and third parties

[Fleur Anderson]

I beg to move amendment 74, in clause 25, page 36, line 19, at end insert—

‘(2A) In section 85(2) of PPERA, after “incurred”, insert “(in the case of a parliamentary election only after the date of the election has been set or fixed)”.’

This amendment would limit regulated periods for UK Parliamentary General Elections to the period between the announcement of the election and the close of polls.

Clause 25 is about joint campaigning by registered parties and third parties and sets up the necessary amendment to have joint plans registered by those registered parties and joint parties when they are campaigning together. It clearly focuses mainly on suppressing the unions’ ability to campaign with parties. The Opposition oppose clause 25 in its entirety, as I will come to later.

On amendment 74, we have just been talking about deadlines and dates and how, if there is confusion about who can campaign, there is confusion about what has to be registered financially and who that has to be registered with. Then there is a lot of red tape. On top of that, there is confusion about the dates and the period that we are in: is it an election time or not? That will all, jointly, have a huge suppression effect on campaigning, which is the lifeblood of our elections and our free and democratic society.

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[Kemi Badenoch]

I do not think so at all. In the previous clause, we made the situation equal for everybody. The Opposition are talking as if there is a secret conspiracy where everybody knows, other than them, when an election is going to be called. We are applying the law equally to everybody. That is right and I am happy to continue making the argument.

[Fleur Anderson]

Will the Minister give way on the point about a conspiracy?

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[Kemi Badenoch]

As I have already set out, spending limits are an integral part of the political finance framework. They ensure a level of fairness between parties and campaigners. Controls are already in place on the integrity of spending limits—for example, in the case of targeted spending where a cap is placed on third party spending to promote one political party, and joint campaigning, which applies where third party campaigners work together and must all report costs. It is right that where groups work together on a campaign the spending should be accounted for by anyone involved in it, otherwise groups could unfairly attempt to make use of multiple spending limits. Therefore, we are extending the principle of joint campaigning to cover scenarios where political parties and third party campaigners are actively working together on a campaign. That is very different from targeted spending, where a third party targets a political party with their spending, but they do not actually work together on a campaign. It will simply mean that where a political party and third party campaigner are incurring spending and actively campaigning together, the relevant spending for that joint campaign should be accounted for by all groups involved in the spending. That will help to ensure that campaigners are playing by the rules and make it much easier to know who was involved in such campaigns. Of course, it will not stop groups spending separately outside the joint plan in their capacity as an individually recognised third party or political party. Any regulated spending that is undertaken by an individual group and is not part of a joint campaign will need to be reported only by the group incurring the spend.

Furthermore, to create parity with the current rules on joint campaigning between third party campaigners, the requirement to specifically identify relevant spending and spending returns will also be applied to the existing rules on joint campaigning between more than one third party campaigner. It is absolutely right that the rules on transparency of joint campaigning should be as similar as possible across all types of campaigners, to ensure fairness and support compliance. Therefore, I urge that the clause stand part of the Bill.

[Fleur Anderson]

We oppose part 4 in its entirety. The Minister makes it sound very easy. Parties campaign together and write a joint plan. If they have been a part of it, they declare all the expenses. In practice, that involves a huge amount of red tape and burden, and it is absolutely disproportionate to the effect that the Government are trying to achieve with the Bill—transparency, integrity and freeing up our elections so that everyone can take part and we all know what is happening. There should absolutely be transparency, but there should not be an overly bureaucratic system that will actually suppress freedom of speech.

The clause is a deliberate attempt to silence the trade unions in particular, which is what I will focus on. It is all about the Conservatives rigging democracy in their favour, because they know full well that the clause will silence Labour-affiliated trade unions. It is totally out of step with what we see globally. Only four of the 57 member states of the Organisation for Security and Co-operation in Europe—the UK, the Czech Republic, Ireland and Slovakia—require third parties to register campaigning activity at election time. Clause 25 would change the joint campaign rules so that organisations campaigning jointly with political parties are collectively liable for the total campaign expenditure of all organisations. No matter what small part or supporting role an organisation might play, it has to declare the full total amount, which will take up all of its campaigning allowance. That will include the political party.

The 2021 report “Regulating Election Finance” by the Committee on Standards in Public Life says:

“When considering calls for greater regulation of non-party campaigning it is important to be mindful of the role of non-party campaigning in the broader ecosystem of democracy and pre-election debate. As the Committee made clear when it first concluded that spending limits for non-party campaigners would be necessary, there is nothing wrong with individuals and organisations sending out explicitly political messages in advance of and during election campaign—‘On the contrary, a free society demands that they should be able to do so, indeed that they should be encouraged to do so.’ The right to campaign is also protected by law through the right to freedom of expression. This should act as a check on ensuring that regulation strikes the right balance.”

We contest that the Bill does not strike the right balance. Who can think of a political party that has strong historical links with external organisations working together—maybe around election time, and maybe for workers’ rights across the whole country—and traditionally campaigning together as a movement for change? That’s right: it is the trade unions. I hope that the Minister has talked to the trade unions about the Bill and understood the impact that it will have on trade union activity in all our constituencies, as well as across the country.