Elections Bill

Lord Collins of Highbury Excerpts

Lords Hansard - Part 2 & Committee stage
Thursday 17th March 2022 Lords Chamber

Moved by

[Lord Collins of Highbury]

52: Clause 27, leave out Clause 27 and insert the following new Clause—
“Joint campaigning by registered parties and third parties
(1) The Secretary of State must by regulations require registered parties to identify targeted expenditure incurred by a recognised third party that is subject to authorisation under section 94G of PPERA by the relevant registered party, and which exceeds the limits in section 94D(4) of PPERA. (2) Regulations under subsection (1) must include, for relevant returns submitted pursuant to section 80 of PPERA, provision for the introduction of a specific reporting category for targeted expenditure incurred by a recognised third party that is subject to authorisation under section 94G of PPERA by the relevant registered party, and which exceeds the limits in section 94D(4) of PPERA.”Member’s explanatory statement
This amendment would replace provisions on joint campaigning with the recommendation made by the Committee on Standards in Public Life in their 2021 report Regulating Election Finance (see recommendation 21).

[Lord Collins of Highbury (Lab)]

It’s that man again, as they say.

Despite the urgings of the noble Lord, Lord Hodgson, on this clause I shall take a little time, because it is a fundamental issue of principle, whether intended or not. I have tried to stress to the Minister that sometimes, though consequences may be unintended, they are serious in their effect. I want to go through why I believe it is unclear what the purpose of Clause 27 is. There does not appear to be a problem to solve. Spending by non-party campaigners in support of a political party is already highly regulated under the targeted spending rules and counts against the party’s spending limits. I do not believe this clause has been really thought through and it risks substantial unintended consequences that could include silencing independent trade unions and interfering with the right of the Labour Party to set its own rules and order its own business.

Of course, we have had previous debates about tying up small, largely voluntary organisations with close associations with particular parties in red tape and scaring off civil society organisations working with politicians and parties. I urge the Government to think again on this clause and to replace it with recommendation 21 from the Committee on Standards in Public Life, to shine a light on non-party spending authorised by political parties. They should be looking to lift the red tape burden on civil society organisations, not add to them, so that we can get the balance right when it comes to election campaigning.

What is this clause for? We have targeted spending rules already; parties already have to account. The clause brings big changes and risks substantial unintended consequences. My noble friend Lord Kennedy and I have had meetings with the Minister. My noble friend and I worked together in the Labour Party, I as general secretary and he as finance director, and we had a statutory responsibility for reporting and accounting properly for all our expenditure, including third-party expenditure. We are both very keen to know what misbehaviour this clause is attempting to stop. Some may have concerns that non-party campaigners give political parties two bites of the cherry, but this is not really the case with the targeted spending rules brought in in the lobbying Act.

Third-party expenditure in support of a party already has to count towards the party’s election expenses. The third party cannot spend more than £31,980 in England, £3,540 in Scotland and £2,400 in Wales in support of a political party without clear written authorisation, which must be lodged with the Electoral Commission. This expenditure must then be declared by the third party in its return and, crucially, must also be included in the return of the relevant political party and count towards its expenditure. A trade union campaign for the Labour Party therefore already counts against Labour’s limits. Parties cannot artificially inflate their limits by seeking support from a third party. So there is not really any evidence of the need for this clause. What is it intended to stop? Has anyone provided examples of this behaviour?

Certainly, my noble friend Lord Kennedy and I have sought this information. Tell us what it is, because we may actually share the concern and want to seek ways of putting an end to it. As I say, we think the better way is to have greater transparency. Of course, there is a theoretical possibility that a political party could work with a third-party organisation and ask it to co-ordinate campaigns against its political opponents. This would not be covered by the targeted spending rules, but there is no evidence that this is taking place and, were it to take place, it is highly unlikely that the party would enter into a formal joint campaigning relationship with such an organisation. I suspect it would be very much an arm’s-length relationship, possibly deniable, and therefore not caught by this clause. I think it is worth bearing that in mind.

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[Lord Hodgson of Astley Abbotts (Con)]

The faith groups will be particularly affected, particularly the Quakers, because of the nature of their organisation, which is quite devolved. It presents difficult challenges for them in campaigning, as well as for some other groups—but the Quakers in particular were brought to my attention.

[Lord Collins of Highbury (Lab)]

I am grateful to the noble Lord for saying that. Over the last few weeks, I trawled through all of the types of organisations that could be formally linked with a political party, where they might have some sort of agreement to jointly campaign.

I have tried to grapple with and generally understand what this clause is really attempting to stop. It has been described as closing a loophole, but I do not see that. The biggest loophole in election spending is around the negative campaigning that occurs. This is often associated not with any political party or particular candidates but more with causes that want to disrupt the political process. Again, this comes back to the Russia report. Who is going to do the sort of elicit negative campaigning that we have seen? It is more likely to be organisations under the regulatory framework that will not be captured by this clause. It will be the legitimate civil society and trade union organisations that will be captured by it. It has got nothing to do with transparency or trying to ensure that there is proper reporting; it will have a very negative effect.

I said to the Minister that I would give him examples of how some affiliated unions are quite fearful. I mentioned the Musicians’ Union, a long-established affiliate of the Labour Party. It has a political fund, 32,000 members and a member on the national executive council—so there is a formal organisational link and a formal management link, if you like. Because the definition of “joint campaigning” is not set out in law, there is a real risk that the MU could be deemed to be in joint campaigning arrangements. It will play a part in agreeing our manifesto, through that Clause 5 process that I mentioned. So I can see a scenario where the Musicians’ Union, which spends negligible amounts in campaign expenditure in general elections—it puts out social media and website content about voting Labour but does have anywhere near enough expenditure to even require it to register with the Electoral Commission, as the notional cost of staff time has been all too low—will be captured here, undermining a long-established principle.

I have spoken for a long time, but it is really important that I set out a very clear description of the Labour Party’s structure and relationship with affiliated unions, and how that could be damaged by this clause. I hope that the noble Lord will be able to explain what it is designed to stop. Tell us, and perhaps we can co-operate in coming up with something better.

[Lord Woodley (Lab)]

My Lords, I support Amendment 52 in the name of my noble friend Lord Collins. He eloquently explained the pernicious threat posed by this legislation to our democracy. As a former leader of Unite the Union, I do not need anyone to tell me how dangerous this Bill, and Clause 27 in particular, will be to trade unions and their ability to campaign on the issues that matter to their members.

My noble friend Lord Collins said that it has not been thought through. Far from it: it has been well and truly thought through. This is yet another ideological assault on the trade union movement by this Government. It is nothing less than an attempt to gag the trade union voice once and for all, coming so soon after we debated the tax on trade unions to fund their own regulator, and a police and crime Bill which, as my noble friend Lord Hendy warned on Report, could see the end of the right to picket during lawful industrial action. It is clear that the Government’s agenda is nothing more than trying to stop us getting involved in talking with our members. It is certainly not “levelling up”, or “building back better”.

It is a shame, because there is no doubt that, as my noble friend said, trade unions are a working-class group of people who look after their members and those who struggle to look after themselves. They balance the bad bosses and a system that is sometimes rigged against them. We should always remember that union members earn higher wages than non-members. They have more paid holiday, better sick pay and safer workplaces. This is crucial, particularly at a time such as this when there is rampant inflation.

It is quite simple. Trade unions demand the right to campaign on any issue that matters to trade unionists, regardless, as has been said, of the Labour Party’s own priorities. For example, if I want to ask for more doctors for the NHS or to campaign against the far right in this country or on other serious industrial issues such as the shameful practice of fire and rehire, as a trade unionist, I must surely have the right to do so through the democratic structures of my union. Just because a trade union is affiliated to the Labour Party, it does not mean that we always share the same political priorities: far from it. Why should money be spent by Labour on an election campaign count against the limit allowed by, for example, my union, Unite? With the greatest respect, it makes absolutely no sense, unless the objective is to silence the trade unions.

Another clear danger with Clause 27 is the chilling effect it will have on unions because they will be afraid to break the rules. The rules themselves are unclear and could change at the whim of Ministers. It will also actively discourage unions and other groups from campaigning together as a coalition—a totally legitimate activity that should be welcomed in any democratic society.

Clause 27 could even lead to Labour-affiliated unions being held accountable for the entire election campaign expenditure of the Labour Party. This would be a completely crazy state of affairs. Because “joint campaigning” is not properly defined in the Bill, affiliated unions could discover that they had exceeded their own expenditure limits many times over. They could even be breaking the law before they had had a chance to begin to campaign on their own priorities. Surely this is absurd. It is almost surreal. This situation must not be allowed to happen.

Let us not kid ourselves: this is an unprecedented and unconstitutional attack on the Labour Party and on the affiliated trade unions that founded it. It completely undermines the most basic principles of democracy, freedom of speech and freedom of association. Again, as has been said, this Bill breaches the long-standing convention on cross-party support for any fundamental changes to the democratic process. Unfortunately, the Government are riding roughshod over this convention. They are attempting a power grab of epic proportions. For the sake of our democracy and for the freedoms we all take for granted, this draconian legislation—and this clause in particular—must be defeated before it ever reaches the statute book. Amendment 52 is a critical step in this fightback. I urge all those who wish to defend our democracy and freedoms to support it.

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[Lord True (Con)]

My Lords, I am grateful to all noble Lords who have spoken. I venture to say that I am unable to alter every word of what I might be advised to say, but I repeat what I said this morning when we had the first group on Clause 25. I hope that those who were present this morning will understand what I said in earnest when I responded to that. I listen to what is said in your Lordships’ House. Sometimes it is not the wisest thing to give a full response on the hoof but to give a commitment to further consideration and discussion with noble Lords in all parts of the House, which I undertake to do.

I will respond in general terms on this clause and will follow up in writing specific points that have been made in the debate. I am advised that it is unlikely that clubs will be affected, but this is why I think it is not wise to give a response on the hoof. I think we need a collective understanding of where it might go and, ultimately, it is for the Electoral Commission to give guidance and advice on these matters.

I enjoyed that part of the debate where the Government’s position was likened to that of Mr Tony Blair. I am not sure whether that was meant as a compliment or otherwise, but I hope that we can move forward in a spirit of understanding. One of those understanding points is that spending limits are an integral part of the political finance framework— I think we all agree on that—and that they ensure a level of fairness between parties and campaigners. The issue that some noble Lords have put is that they do not believe that the clause before the Committee meets those criteria, and I will reflect on what has been said.

Clause 27, which the amendment is designed to take out, is designed to prevent unfair circumvention of spending limits. It is fundamentally unfair that the current rules allow for a party potentially to use another group’s spending limit or resources in order to increase its own spending power. Under the existing legislation, campaigners could game the system by establishing distinct groups that together, working with a political party, have an enhanced spending capacity via multiple limits. Indeed, the noble Lord opposite acknowledged that in his speech. It is right that, where groups work together on a campaign, the spending should be accounted for by anyone involved in that campaign, otherwise spending limits are meaningless, and I think that, again, that is broadly common ground.

The effect of the Bill—noble Lords have questioned this—is to extend the principle of joint campaigning, which applies where third-party campaigners are working together, to cover scenarios where political parties and third-party campaigners are actively working together on a campaign. This is not altering the definition of joint campaigning as it is commonly understood; the measures only apply to qualifying election expenditure, not wider, non-electoral campaigning that groups may undertake. I will come specifically to the point on affiliated trade unions later. Political parties and third-party campaigners will be aware if they are working together on a campaign that involves spending money on regulated election expenditure.

The proposition that the Government are putting forward will simply mean that, where a political party and third-party campaigner are incurring spending together, actively campaigning together, the relative spending for that joint campaign should be accounted for by all groups involved in the spending. This will help to ensure that all campaigners are playing by the rules and make it easier for the public to know who is involved in such campaigns.

The measures are intended to strengthen the principle of spending limits already in law that protect the level playing field by ensuring that political parties cannot use campaign groups to enable them to expand their spending limit potential—what could be seen as a political party outsourcing its regulated spending to a third party. As we discussed in relation to Clause 22 —and the noble Lord, Lord Wallace, has done some research on the matter—during the 2019 general election, the group Advance Together registered as a political party and a third-party campaign group and proceeded to run negative attack campaigns in five constituencies. What can be done in five places can be done in others.

[Lord Collins of Highbury (Lab)]

Just on that point—before the Lib Dems jump up in shock and horror—in that case the one organisation registered both as a political party and as a third party. Those are not the circumstances of separate organisations coming together. That particular problem could have been identified by the Electoral Commission and could be subject to provisions to stop a single entity trying to expand its spending limits by becoming more than one type of organisation. This is not what we are talking about in Clause 27.

[Lord True (Con)]

My Lords, I was coming on to say that. While Clause 22 will ban the same organisation from appearing on both registers at the same time, the effect, as noble Lords have said, of existing joint campaigning rules and this proposed extension is to reinforce that by stopping other ways that spending limits could be avoided and so it maintains the level playing field.

Of course, that will not affect groups spending on campaigns, even on the same issues or with the same objective, separately outside a joint plan, in their capacity as an individual recognised third party or political party. Any regulated spending undertaken by an individual group not as part of a joint campaign will only need to be reported by the group incurring the spend. No political party or third-party campaigner should be allowed to use the facade of multiple groups working together to expand its spending limits on campaigns where the various groups are for all intents and purposes operating as a single group.

The noble Lord has proposed an alternative approach, which, as the noble Lord, Lord Stunell, rightly said, refers to the CPSL recommendations. By the way, the CPSL recommendations came out after the Elections Bill was introduced. When I refer to some of the things we were doing in the spirit of CPSL, it is in that context. But I did make very clear that we took that committee seriously. The noble Lord’s amendments would require the Secretary of State to introduce regulations for the purpose of requiring political parties to distinguish targeted spending from other expenditure in their spending returns.

I appreciate that the noble Lord’s intention, and that of CPSL, is to increase transparency on this important topic. However, this replacement does not match the extent of transparency that Clause 27 creates. There, we get into a point of difference. Targeted spending is more limited in its definition than joint campaigning. It focuses only on the promotion of a single political party and its candidates exclusively, not campaigning in relation to policies or issues that may relate to the electoral prospects of a number of political parties. Furthermore, targeted spending also does not cover negative campaigning intended to, for example, reduce support for other candidates or parties. I know that Members of the other place are particularly concerned by this issue, and it is right that such activity, which is highly prevalent in modern campaigning, is transparent.

Targeted spending therefore does not include all scenarios where third parties and political parties might actively work together. That is not to dismiss the importance of the amendments that the noble Lord has put forward. But focusing only on targeted spending and failing to tighten the rules on joint campaigning, as the noble Lord suggests, would not, in our submission, deliver full transparency for the public and might allow campaigners for parties to—

[Lord Collins of Highbury (Lab)]

May I ask a question? The Minister refers to concern down the other end. I also wish to express concern about some of the negative campaigning that can occur in general elections, and I am keen to hear from the Government how they intend to deal with that. The fact is that this clause requires there to be a common joint effort, formally recognised, between a party and another organisation. The fact is that most negative campaigning that takes place does not fall into that category, so this clause can have an impact only on those organisations that have a formal relationship—in other words, the Labour Party.

[Lord True (Con)]

I accept the point made by the noble Lord about the wider ambit of negative campaigning, and I hope that is where we will find—whenever we finally get there—a measure of agreement across the House, in the context of, for example, digital campaigning. I agree with the noble Lord and the Committee on Standards in Public Life that third-party campaigning should be transparent, and campaigners should participate on equal terms and be accountable. These principles are already represented in current law.

I have heard what so many noble Lords, and people who have a proud record of commitment to the trade union movement, have said in this debate, and, as the noble Lord, Lord Collins, was kind enough to say at the outset, my officials have met with the TUC and the Trade Union and Labour Party Liaison Organisation, and we remain open to continuing those discussions. I have met with the noble Lord and his colleagues, and I am ready to do so again. We have listened closely, and I have listened again today to their concerns that Clause 27 will unduly limit the close relationship between the Labour Party and some trade unions. Much of the expressed concern has centred around the definition of “joint campaigning” and whether it would capture, for example, trade unions agreeing policy or manifesto commitments as part of the Labour Party’s governance structure. Clause 27 does not alter the definition of joint campaigning as it is commonly understood, and the Electoral Commission already provides guidance on what is and is not likely to constitute joint campaigning under the current rules, and we would expect them to update their guidance were new rules to come forward in the Elections Bill to reflect the extended circumstances. We will come onto statutory guidance later.

The Elections Bill also does not change the definition of “controlled expenditure”, meaning that only spending which may be reasonably regarded as intended to promote or procure electoral success in the lead-up to an election is regulated, whether that is undertaken by a political party or a third-party campaigner. In practice, such activity as formulating policy for inclusion in a manifesto is unlikely to meet the Electoral Commission’s “purpose” or “public” tests, which will remain used to determine whether spending is regulated. It also would not include campaigning or advocacy on issues such as poverty or climate change that are not linked to the electoral success of parties or candidates.

Finally, I want to be clear that under the current rules or under the rules proposed in the Elections Bill, a party being affiliated or having a formal relationship with another campaigner does not in itself automatically constitute joint campaigning. Being an affiliated trade union does not mean that all activity of any other member of the affiliation would immediately count as joint campaigning, unless that activity met the Commission’s existing tests for joint campaigning. Affiliated groups running related or complementary election campaigns would not necessarily constitute joint campaigning, as the campaigns may be being run independently of each other. Only if the campaigns were being conducted in pursuance of a common campaign plan would both groups need to account for the spending.

I hope my response has gone some way towards at least assuring noble Lords that the Government are listening and have listened to the debate on this subject. I hear the concerns that have been expressed, but this clause is not intended to target trade unions. I have heard the submissions made about unintended consequences, but, as I fulfil my duty to sit here, listen to and respond with great respect to your Lordships—

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[Lord True (Con)]

My Lords, the noble Lord is a very experienced Member of the House and he knows that a Minister at the Dispatch Box is not in the usual channels. The duty of the Minister at the Dispatch Box is to be here and respond to the House, as I have explained, whenever and at whatever hour. I gave an undertaking at the start of Committee that I would sit here for every minute of every hour of every day of this Bill’s Committee, Report and Third Reading—whatever the procedures are in respect of the House—and I will do so. I do not think that I want to proceed on that issue.

I have sought to explain the rationale behind this clause, and I have heard the concerns expressed. As far as discussions are concerned, I am sure that the noble Lord can liaise with his own Front Bench and representatives, but—as I think the noble Lord, Lord Collins of Highbury, would accept—my door is open, has been open and will be open on this matter.

So that is the position. I repeat that the clause is not intended to target trade unions. However, I understand the perceptions and practical concerns that have been expressed. In light of that, I hope that the noble Lord will accept that the clause should stand part, at least at this point. I undertake to read very carefully what has been reported in Hansard to reflect on the debate, and I hope to have further engagement on this matter. In that light, I hope the noble Lord will withdraw his amendment.

[Lord Collins of Highbury (Lab)]

One of the problems that we have had, and I raised this at Second Reading, is the failure to properly consult. The Trades Union Congress and TULO, the organisation of Labour-affiliated trade unions, were not consulted in the first round, unlike other charities and third-sector organisations. It was only after being pushed by me, in a meeting that the Minister organised, that meetings took place, rather late in the day.

The clause has serious consequences. The Minister talks about the definition of joint campaigning being well-established, but where is it in law? Where can we actually ensure that it will not change and then be captured? That is the problem that the clause has, and I suspect he has been unable to reassure anyone in this Chamber about what it may end up doing. We will have to return to it strongly, and I expect that before Report the Minister will not just meet me but will have proper consultations with the TUC and TULO because it is important that these organisations are properly consulted on something that will have such a huge impact.

[Lord True (Con)]

My Lords, I gave that undertaking in my speech. I accept the reproof but I say to the noble Lord that we have started those contacts—I was not personally involved because I had other engagements at the time but I am responsible for the Bill in this House, though not for its progress up to this point—and, as far as I am concerned, we will continue to do so.

[Lord Collins of Highbury (Lab)]

But timing is of the essence, and we are being pushed. There is a reason why this House’s scrutiny of the Bill is so important. How long did the other place take to scrutinise this clause? No time at all; in the two hours allocated to the Bill, this clause was not included. We can see from Hansard that they had no debate on these clauses, but it is a fundamental issue that affects our democracy. I know the Minister is concerned about the time we may take over these issues, but I assure him that I will stay up all night and all day until we get proper consideration of these issues. It is not right that this measure is pushed through without proper consultation and consideration. In the meantime, I will not push my Motion to a vote.

[The Deputy Chairman of Committees (Lord McNicol of West Kilbride) (Lab)]

Does the noble Lord beg leave to withdraw the amendment?

[Lord Collins of Highbury (Lab)]

It is a clause stand part debate.

Amendment 52 withdrawn.

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[Baroness Chakrabarti (Lab)]

My Lords, I am not an expert on dining clubs, working men’s club or gentlemen’s clubs. Sadly, in these days of the pandemic, even nightclubs are a distant memory.

[Lord Collins of Highbury (Lab)]

Not for me.

[Baroness Chakrabarti (Lab)]

I will get advice from my noble friend on that afterwards.

I am concerned about third parties campaigning in a free democratic society and unintended consequences. My background is as a human rights campaigner, on civil liberties and civil rights in particular. In my experience the nature of those campaigns is that you are always having to side with the opposition of the day—not just the Labour Party but any opposition of the day. Just google me and you will find lots of reasons for my noble friends to be cross with me. I am not expressing hurt feelings on behalf of the Labour Party on this occasion. I am concerned about the ability of human rights organisations and civil society to function in the future, regardless of who is in power.

While I commend the sentiment behind these amendments, I worry about whether the fundamental problem that they attempt to respond to is the one touched on by my noble friend Lord Collins in the last group, which goes back to PPERA itself: the concern about what joint campaigning is and how one is touched by these third-party controls. I totally understand successive Governments’ concerns about third parties who are proxies for political parties in a way that we have seen in other jurisdictions, where one sees even TV commercials funded by so-called civil society organisations that are proxies for political parties. That drives a coach and horses through any kind of regulation, and I understand that, but, at the same time, as someone who was the director of the National Council for Civil Liberties in 2014 when the legislation came in, I can testify about the chronic anxiety that it caused among civil rights organisations that were really not party political in any sense that would be understood in this place or the other place.

I support the instinct behind the amendments. The Minister has been so kind as to say that he wants to drill down a little more before Report. In whatever time is available in his discussions, I ask him to bear in mind that there are ongoing anxieties about that fundamental problem. It is wonderful to have guidance, but, as we always do with legislation when there are ambiguities and concerns, we say, “Well, we’ll have this regulator who will help. We’ll have this guidance that will help after the fact”—whereas, if we are really talking about rights, freedoms and the constitution, ideally we would have sufficient clarity in the primary legislation itself.

We have heard from trade unions, with their particular link with the Labour Party, but we could be talking about all sorts of charities, NGOs or grass-roots campaigns, from the Countryside Alliance to Liberty, which I worked for. I listened carefully to the Minister on the previous group. This is not about climate catastrophe or poverty—except “It isn’t until it is”. It is not an issue until it seems to be the biggest issue of the day and people think that it is then capable of toppling a Government or making an opposition party. I am looking for that level of comfort and—the word has been used a number of times—clarity, not in just for future guidance but in current law.

[Lord Collins of Highbury (Lab)]

My Lords, I welcome this. I recall the days when the noble Lord, Lord Mann, was telling general secretaries what they could and could not do. There were occasions in meetings where he was the bad cop and I was the good cop—I do not think that things have changed much, really.

The noble Lord talked about clarity and my noble friend Lord Blunkett talked about certainty. That is the nub of this, and I support the proposals of the noble Lord, Lord Hodgson. It is not that I do not trust the Electoral Commission or what it may or may not do; it is because the current system relies on guidance that could change overnight and is not certain. My trade union colleagues behind me know that statutory codes of practice are often used as a way of creating certainty, to ensure that there is a clear defence, as the noble Lord, Lord Hodgson, put it. So the noble Lord and my noble friend Lord Blunkett are therefore absolutely right.

There is a problem at the moment with the regulation, and because there is doubt and uncertainty, the result is “Don’t do it” and inaction. Therefore, this sort of proposal, where we create a statutory framework that could be properly scrutinised—again, I support that— would create clarity and certainty, and therefore encourage civil society to participate in our democratic process. So I support the noble Lord.