Elections Bill

Lord Collins of Highbury Excerpts

Lords Hansard - Part 1 & Committee stage
Thursday 17th March 2022 Lords Chamber

Moved by

[Lord Collins of Highbury]

41: Clause 25, page 35, leave out line 6

[Lord Collins of Highbury (Lab)]

My Lords, I am acutely aware of the call from the noble Lord, Lord Hodgson, so I will try to avoid speaking for too long, but at times there are points of principle that one has to address. Of course, the good thing about Committee is that the House is at its best in terms of probing what exactly is meant by and what is the intent of particular clauses. I have sought to get a clear view about the impact of Clause 25 and where it could lead.

The noble Lord, Lord Hodgson, has said many times in the House that the majority of non-party campaigning organisations, whether they are unions, charities or think tanks, do not exist primarily to campaign in elections. Expressing a public view at election time is not their primary purpose. The vast majority of their expenditure and activity is on other work, and they generally have quite limited staff—or volunteers, for that matter—to give support for election regulation compliance. The rules require these non-party campaigners to make a judgment about where they have incurred regulated expenditure.

As we have heard in previous debates—of course, lot of these clauses are interrelated—the guidance of the independent Electoral Commission is invaluable in helping non-party organisations navigate incredibly difficult and complicated rules that are defined loosely in legislation. There is a requirement to lean on the Electoral Commission. The fact that a Secretary of State could, under the Bill, direct the commission to amend its guidance—in effect, changing the rules—is deeply worrying.

As we have heard previously in Committee, election expenditure is regulated for the 12 months leading up to a general election. As the Minister rightly pointed out, this has been in place for quite a while. If the definition of what constitutes regulated campaigning were to change during that period, organisations would clearly find themselves having breached the rules retrospectively. That, of course, is the chilling effect that we have referred to that we need properly to address.

It goes without saying that this level of ministerial and therefore political oversight of the Electoral Commission undermines the independence of the regulator and opens the door to political interference in the regulation of campaign activity by party and non-party campaigners alike. This is deeply worrying; it conflicts with our democratic traditions and is an extension of the trend of governmental interference in previously independent regulators.

The legal definition of “joint campaigning” is loose and organisations rely on the Electoral Commission’s guidance to tread the line between working in a formal coalition and the usual sharing of information and communication that happens organically between organisations that have common goals, even if they do not have a common structure.

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[Lord Balfe (Con)]

From my position in the trade union movement, I knew there were quite a lot of right-wing people in AUEW/TASS. We were not all bleeding-heart liberals; we were actually toughies. I had no difficulty in joining the Conservative Party because I felt that it reflected many of my values.

[Lord Collins of Highbury (Lab)]

I am enjoying this exchange, although obviously we need to focus on the clause. In recent times the noble Lord has addressed this House about the discipline that has been imposed on him by the Conservative Party in the House of Lords, so that seems to be a common thread through his career.

[Lord Balfe (Con)]

I think we should stop our entertainment and get back to the purpose of the Bill.

My concern about the Bill is that it leads to an uneven playing field—it is as simple as that. If we are to have reform, it should be by some form of consensus, although I know that has been incredibly difficult to achieve. I take a rather puritan view as to how much should be spent on elections. We need to get back to a situation where a democracy consists of people asking for votes, not of people going out and attempting to buy them. To my mind, the party funding system has got completely out of kilter.

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[Lord True (Con)]

My Lords, having listened to the debate, the noble Viscount’s contribution was obviously one that I heard. The Bill as drafted—like any other Member, I can only parse a Bill that is put before your Lordships House—has no restriction on what time or in what condition it might be adopted. That is why, I thought, I heard widespread concern from the Committee. When I started, I said I thought that the answer to the noble Viscount may not lie in addressing any particular possible set of circumstances but in trying to address the wider concern that your Lordships have about these provisions. That is the undertaking I am giving between now and Report. I have said that, at the very least, we will look with interest at the proposals put forward by the noble Lord, Lord Collins of Highbury.

[Lord Collins of Highbury (Lab)]

My Lords, I very much welcome the Minister’s response to this debate. I think we are making progress. The fact that the Minister recognises that there are genuine concerns shows the benefit of proper scrutiny of these clauses. I hope that, in his consideration of what might come from the Government on this clause before Report, he will consult both the TUC and TULO to ensure that they understand the rationale behind it. I am sure he will. I welcome the Minister’s comments and I beg leave to withdraw my amendment.

Amendment 41 withdrawn.

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Debate on whether Clause 26 should stand part of the Bill.

[Lord Collins of Highbury (Lab)]

I am sort of moving this on behalf of my noble friend Lady Hayman of Ullock. We have sort of tried to spread out these groups so we can last the day, as it were, and I am doing my best.

I will be brief here, because I know that the noble Lord, Lord Hodgson, has his amendment in this group. I come back to the fundamental point that some of the clauses in this Bill beg the question of what the problem is and what we are trying to solve. It is absolutely not clear why this clause is here. What is clear is that, once it is introduced, it will add a burden to a lot of small third-sector charity organisations, and those organisations are least able to bear that burden. That is the point I really want to stress. It comes back to the issue that heavier, more stringent regulations placed on such small organisations will result in what we have called so far a chilling effect—basically, self-censorship. It will not be worth the hassle to express an opinion, and it could be quite an important political opinion. We talked about campaigns about local facilities. It could be a small charity running a creche or something that is promoting childcare that wants to impact a particular election campaign. We have seen examples of that in the past.

One of the problems of this Bill is that, instead of the Government having to come up with clear explanations —“We’ve identified the problem, this is the solution, and we can all unite behind it”—we are having to think, “What is the problem that the Government have identified here?” It increases anxiety in me, because it makes me think, “Am I missing something? Is something happening to our democratic society that requires this sort of burden of regulation, this new lower tier?”

I will certainly welcome the contribution of the noble Lord, Lord Hodgson, on his amendment, because I can see that he is seeking ways to alleviate that burden, and I am happy to consider that as well. But at the moment I am not at all satisfied that there is any justification for the clause, or for that lower-tier arrangement.

[Lord Hodgson of Astley Abbotts (Con)]

My Amendment 48A has been grouped with the stand part debate. I thought about degrouping it, but having seen the lie of the land and the way that the debate was likely to go, it seemed easier to join the noble Lord, Lord Collins, in this group. I am grateful to the noble Lord, Lord Blunkett, for his support.

This is about third-party joint campaigning. It is not unusual for charities and voluntary groups, especially smaller ones, to try to increase their impact by gathering together in a joint campaign. That could be focused on a policy area, such as animal welfare, or it could be attacking a particular event. When I was doing the review—I have referred to this before—HS2 construction was an important issue, and a number of groups and communities affected by it joined together to campaign to try to change public opinion about the desirability of building HS2 at all. Just those two examples show that this is a very complex area, and finding the appropriate degree of freedom and transparency is hard.

The current rules governing joint campaigning are pretty complex, burdensome and hard to understand, especially if the individual participants are quite small organisations. The present rule is that joint campaigning expenditure bites only when total expenditure by third-party campaigners reaches £20,000—the level at which registration under the Electoral Commission rules is required under Part 6 of PPERA. However, under this Bill there will be a new lower threshold of £10,000. It is true that the lower threshold—the £10,000 to £20,000 level—will be subject to a lower level of scrutiny, but joint campaigning expenditure will still need to be recorded and accounted for. This adds yet another complication to an already complicated arena.

My amendment, complex as it is, seeks to remove some of that bureaucratic burden. How would it work? Let us suppose that charity A has spent £7,000 on its own account and £3,500 as part of a joint campaign with a number of other charities or voluntary groups. That will have taken the total spend to £10,500—above the lower limit. If the amendment were to be accepted, the £3,500 would not be included, so the charity would not have to register. However, if it were to spend £10,000 on its own account and still spend only £3,500 on the joint campaign, it would have to register, because it would have hit the lower level on its own account. Finally, if charity A were to spend £5,000 on its own account and £16,000 as part of a joint campaign, thereby spending £21,000, it would have to register, because it would have infringed the higher level at which full registration is required. That is provided for in proposed new subsection (7B), in my amendment.

The purpose of the amendment is to avoid sweeping a range of pretty small organisations into the regulatory net, thus releasing them from the need to undertake ineffective registration, but at the same time to avoid creating loopholes that could be used to undermine the effectiveness of the regime as a whole.

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[Lord True (Con)]

My Lords, I am grateful to those who have contributed to this short debate. I acknowledge the complexities here—indeed, in the latter part of his remarks, the noble Lord, Lord Scriven, illustrated one set of possibilities.

As noble Lords know, the clause introduces a new lower registration threshold for third-party campaigners who spend more than £10,000 during the regulated period. I think that it would be agreed—it is common ground on all sides—that any organisation wishing to influence the electorate should be prepared to be transparent. It is entirely reasonable, in our submission, to expect organisations spending significant amounts of money campaigning in our elections—perhaps I am old-fashioned, but £10,000 seems a lot of money to me—to declare that activity. This is particularly important, given the evolution of campaigning. People ask, “What has changed? What is new?” A significant new factor is that digital campaigning has made election campaigning more cost effective and cheaper, allowing for greater reach for less resource.

This new lower tier of third-party registration has been designed to be proportionate to that smaller spend, and it will ensure a minimal regulatory burden for campaigners who fall within the scope of the new measures, without the same reporting requirements that those spending enough for the upper tier are required to comply with—we acknowledge that there is a burden. This proposal enacts recommendations made by the House of Lords Democracy and Digital Technologies Committee in its report on Digital Technology and the Resurrection of Trust, in which it spoke about the need to respond to new manners of campaigning.

I thank my noble friend for his careful consideration of it—I understand what he seeks to do. His comprehensive and balanced report on the regulation of third-party campaigning is held in significant regard. Indeed, the central premise of his report, “getting the balance right” between providing transparency for the public and administrative burden for campaigners, has been present in the minds of all of those considering the measures in Part 4. But, for that reason, we fear that, as it currently seems, the noble Lord’s proposed amendment might inadvertently add an undesirable layer of complexity to the existing rules, which I know is not what he seeks to do. This amendment will require campaigners to consider joint campaigning in their calculation of spending limits for the purposes of registration in some scenarios and not others, a situation that may create confusion for campaigners, who may be unsure under what circumstances they need to count certain expenditure.

Let me be clear on two points. First, at any level of spend, joint campaigning can have a significant impact on the outcome of an election. Reporting of joint campaigning when determining total spending maintains the integrity of spending limits. Secondly, third parties subject to the new lower-tier expenditure limit—the new £10,000 limit—will be subject to the minimum requirements necessary for them to register. As my noble friend acknowledged, they are not required to provide a spending return, and therefore they do not report the specific details of their joint campaigning.

Under the proposed amendment, the entirety of a joint campaign will only contribute towards the spending of a campaigner subject to the existing registration requirements, or the upper tier. However, it will not count towards the calculation of the spending of a campaigner subject to the new lower-tier registration threshold. This means that, in practice, all campaigners would still need to monitor the costs of joint campaigns that they are involved in, if only to determine whether they need to include them in their calculations to register with the commission. Therefore, for consistency, we believe that it would be easier for all campaigners to consider all of the campaign spending, including joint campaigning, in order to comply with the law.

I am pleased that the noble Lord recognises the need for effective campaigning at UK elections. The Government acknowledge that the contributions of civil society are legitimate. But, for the reasons given, in terms of what we think may be the unintended consequences—I am happy to speak to the noble Lord further—I urge and hope that Clause 26 stands part and that joint campaigning continues to form part of the calculation of all regulated spending by third-party campaigners.

[Lord Collins of Highbury (Lab)]

The explanation that the noble Lord has given in relation to the clause is not altogether satisfactory because—if I have a better understanding now—he thinks that costs have somehow gone down with online campaigning and that this is less costly than producing leaflets. As he well knows, £10,000 is not a great deal of money, in terms of campaign expenditure—it is simply not.

But what concerns me about the Minister’s response is that, actually, this new lower tier will especially force all campaigners to monitor their costs and will create a chilling effect, as we have warned throughout the Bill. The result will be that organisations that want to have, and should express, a voice will be reluctant to do so if it impacts in terms of their statutory requirements. I heard what the noble Lord said, but we oppose the clause.

[The Deputy Chairman of Committees (Lord Faulkner of Worcester) (Lab)]

Do you wish to test the opinion of the House?

[Lord Collins of Highbury (Lab)]

No, I do not. I withdraw our opposition.

Clause 26 agreed.