Elections Bill

Lord Stunell Excerpts

Lords Hansard - Part 1 & Committee stage
Tuesday 15th March 2022 Lords Chamber

[Lord Collins of Highbury (Lab)]

My Lords, I am taking the unusual step of trying to get a debate going about a particular word. It may not last long but, knowing my ability, I suspect it will go on for a bit longer than people perhaps anticipate.

I raised this previously, on the first day in Committee: what is the problem that we are examining here, and what is the solution that this clause seeks to offer to that problem? It is not clear to me that we are providing a solution. No doubt the noble Lord, Lord Wallace, will seek to raise some of these broader issues in his clause stand part debate. One of the things suggested is that it is about changing a legal test in the notional spending provisions, which I know are an essential part of election spending controls.

When I first started working in Transport House in 1972, the Labour Party was fully occupied in Transport House. General election campaigns were run from that building and, even after the Labour Party left Transport House and moved to the Walworth Road, it still used the facilities we had in Transport House to conduct the national campaign. Of course, that was prior to some of the regulations about how we account for funding and spending.

This is really quite an important issue. In its briefing, the Electoral Commission points out that in the 2019 general election, notional spending accounted for 40% of the total campaign spend across all candidates, so it is a huge issue that we need to make sure we get right. The Electoral Commission says it is really important that candidates need to be clear when something is notional spending, because it counts towards their total campaign spend and they must not exceed it.

The Explanatory Notes for the Bill say:

“Clause 18 subsection (1) (notional expenditure: use of property etc. on behalf of candidates and others) amends section 90C of the RPA 1983 in order to clarify that ‘on behalf of’ means where the candidate has directed, authorised or encouraged that use by someone else. This will clarify that candidates only need to report benefits in kind which they have actually used, or directed or encouraged someone else to use and do not need to fear being responsible for benefits in kind of which they had no knowledge.”


I have heard the Minister stress that the Bill’s purpose is to better define things, make sure that they are better understood and make sure that, if there are any loopholes, they are closed. I tabled this probing amendment to ask exactly what “encouraged” means. How are we to define that? How will that be translated into codes and guidance that the Electoral Commission puts forward?

I have a concern, and I hope the Minister will spend some time explaining this. What is the problem? Are we properly accounting for all notional spend? To me, that is the problem that this clause should address. If the Electoral Commission is telling us that it is 40% of the spend, we need to make absolutely sure that it is properly accounted for.

My fear is that this Bill is not doing that and could lead to claims of, “I didn’t know—I had no knowledge, even though my campaign people were using an office or a car. I didn’t know that shop down the road was open for me to use.” There are issues of serious concern here. What is wrong with the existing provisions on notional spend? I would ask the Minister to describe the problems, give us the evidence of where problems have occurred and then tell us how this clause solves those problems.

I have tabled this specific probing amendment and I have no doubt that I will repeat some of these concerns when we get to the clause stand part debate. It is incumbent on the Minister to be absolutely clear on this issue. The Electoral Commission says in its briefing that this needs to be tightened up and people’s responsibilities made clear, but then I read in the Explanatory Notes that we want to ensure that candidates need not fear being responsible for benefits in kind of which they have no knowledge. I do not like the idea that ignorance is a defence, yet that is where this clause may be leading. I ask the Minister to tell us what “encourage” means, but also to give us a better explanation of the problem and the solution that this clause attempts to provide.

[Lord Stunell (LD)]

My Lords, I rise to ask some questions very much in parallel with those the noble Lord, Lord Collins, posed to the Minister. The word “encourage” is difficult to define in the legal sense. Is he prepared to share the advice that he has received from counsel about how a court might interpret “encourage” if an offence came before it? The noble Lord, Lord Collins, has illustrated that “encourage” is one thing and “ignorance of” another, but there is a tremendous zone in between, which will be an interesting legal minefield.

I would have thought that, in introducing this proposition in the Bill and to the Committee, the Minister would have in mind creating certainty, not a minefield through which agents, candidates and, for that matter, national parties have to step lightly to make sure that they do not offend and offend again. Speaking as a former candidate and a former agent, I never had any doubt about the distinction between things given to me by my party or anybody else for use in the election, and things that happened as a result of circumstances. Of course, we will come to third-party spending as a separate item later.

Although it has not been clearly expressed as such in the debate on this group of amendments, the specific reason for this clause being here at all is a legal case, which, from the perspective of the Conservative Party, went wrong. The party is seeking to change things so this does not go wrong next time; we will address the sense, or not, of that when we get to the next item for debate. However, even granted that it is a sensible inclusion in the Bill, would it not be rather more sensible to have an inclusion that does not lead to further ambiguity, doubt and difficulty, which will simply tie up agents, candidates and national party agents in trying to work out what “encourage” means or where the boundary of “encourage” lies?

I find it quite hard to understand the situation whereby a coach of activists can turn up and help you for a week and you could not be said to have encouraged it to happen. You may not have ordered them to come—but was any evidence presented that the local party officials at the time rejected it, but the national party insisted that these people came over their dead bodies? Where does “encourage” take us with that? Does “encourage” have a legal definition? We are familiar with other terms, which are used in perhaps somewhat similar circumstances, such as “facilitating”. Clearly, that is one way of looking at it. If they say, “Mrs Buggins will put somebody up for the night”, is that facilitating or encouraging?

There are many difficulties in the wording of this provision, quite apart from the outstanding difficulties with the clause as a whole, which we shall come to in a few minutes’ time. I hope the Minister will share with us the advice that he has had from legal counsel about how courts would interpret “encourage”. I am sure that the courts will come to a common-sense view, based on their understanding of UK language and legislation and any kind of previous case that they can draw into it, but a common-sense understanding of what “encourage” means may not be sufficient. At this point, I want to hear how the Minister imagines it will be interpreted by the courts when the inevitable cases come, via the Electoral Commission, the police or whatever mechanism is going to be permitted under this Bill for any offences to be prosecuted—we have dealt with that subject already. Assuming that cases will be taken forward, how does the Minister expect the courts to interpret “encourage”? What kind of evidence would show that encouragement took place or, alternatively, what kind of evidence could a candidate or an agent produce to show that they did not encourage? Would they have to produce some emails, perhaps, to show that they pleaded with headquarters not to send the money, help, leaflets or a coachload of young people?

The Minister can get the drift of the question that the noble Lord, Lord Collins, is asking, and which is important to understand, so that we get some measure of what this provision might achieve and what it might very well not achieve, despite the Minister’s intentions.

[Lord Grocott (Lab)]

My Lords, I agree very much with what has been said by both my noble friend Lord Collins and the noble Lord, Lord Stunell, who bring a tremendous amount of experience to this matter. I cannot quite match the noble Lord’s experience. I have fought sundry elections at parish, district, county and parliamentary level over the years, but by a bit of fancy footwork I have always avoided becoming an election agent. It has always struck me as the most frightening job in connection with elections.

That brings me to my observation on these amendments —that above all else one needs clarity and simplicity in this area to make the job of being an election agent less onerous and forbidding than it is at present. When we have these kinds of discussions, I often think that there is an assumption somewhere, although I cannot locate where it comes from, that there is a queue of people with tremendous experience who are dead keen to become election agents. My experience is the opposite: as a candidate you pretty well have to beg some friend of long standing to take on the responsibility, because it is a huge responsibility.

It is incumbent on us, as legislators, to make any law in this area as simple, straightforward and unambiguous as possible. That seems to be the objective behind what my noble friend is proposing. I share his concern and anxiety, particularly about the word “encouraged”, which has been developed by the noble Lord, Lord Stunell. There is nothing I would add to that, other than to say: for goodness’ sake, keep the poor election agent in mind throughout this kind of discussion, because—my word—they have a heavy burden to carry.

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[Baroness Bennett of Manor Castle (GP)]

My Lords, I rise very briefly to speak in favour of this clause not standing part of the Bill. I should declare an interest that, as a Green, I am well used to always being on the wrong side of the unfair financial advantage the noble Lord, Lord Rennard, referred to. We obviously have an arms race in spending and politics paid for by the people who pump the money in. I have what might be considered a radical amendment later in this Bill to suggest that we put a very tight limit on donations. It starts from the other end of these things, saying that the quality of our politics is not benefiting from money being pumped in. This clause stand part notice suggests that we do not allow an escalation of the concentration of money even further.

Moving away from the interests of parties that do not have that sort of money—I am sure that many people who have done practical politics will know the reality of this—very often you have a street, down which is the boundary of a constituency or a council ward, and the people on one side are in a hotly contested marginal constituency and those on the other are in a safe seat. Neighbours talk to each other; one says, “I’ve got so many election leaflets coming through my door, my recycling bin is totally overflowing”, and one from the other side of the street says, “Oh, is there an election on? I didn’t know.” Think about what kind of disrepute that brings our politics into, when massive amounts of resources are concentrated in a small number of seats. People can see that this is not right or balanced, or a national political contest.

The idea of allowing notional expenditure just to roll on takes us to a very bad place, so I back the noble Lord, Lord Rennard, on this.

[Lord Stunell (LD)]

My Lords, we have already explored what the exact meaning of “encouraged” is. I thought the answer was going be a lemon, but it is guidance, apparently, which is not very encouraging. I am hopeful that the courts in the event will be just as robust in their interpretation of “encouraged” as they were in respect of coach trips to Thanet, so that this clause in practice will not make the change in the law the Minister hopes for. It may become a dead letter, even. More exactly, it will become not a dead letter but a further cause of confusion, with no reduction in jeopardy for agents and candidates who rely on it. But for the purposes of this debate, let us take it at face value.

In our debate last week on Clause 17, I referred to that clause as an exercise in “wing-clipping” the Electoral Commission. By the Minister’s own account, as he told your Lordships, in practice, those proposed changes made no real difference to anything. He obviously intended to give us some reassurance that those changes meant nothing at all, but I surmise that when he reports back to CCHQ he will make it sound a far more impressive change. Now we have Clause 18, which I also think is going to be found facing both ways. In reality, it is an attempt to satisfy the bloodlust of some right-wing Tory MPs who had rather a close shave in 2015. The Minister’s intention is that if this clause goes on the statute book next time, they will get away scot free. For that matter, we will all get away scot free, able to do exactly as the noble Baroness, Lady Bennett, has just spelled out. I actually think that in responding to this debate he will attempt to sell it to us as something far less important or serious: “It is simply a margin note to clarify the commonly accepted understanding of current law. Nothing to see here; let us move on to the next clause.”

It is worth exploring what the law says now and how it will be different if this clause stands. My noble friend Lord Rennard spelled this out very clearly. In a general election, there are two financial constraints, one at constituency level and one at national level. The constituency spending level is, comparatively speaking, tight, and the national level is, comparatively speaking, generous—and about to become even more generous, apparently. That second constraint—the maximum figure a party can spend outside constituencies—goes into a national campaign. Even the Conservative Party, with all its large donors from various nationalities and provenances, has actually found it hard to spend up to the national limits; and no other party has come anywhere close. So there is an obvious temptation to use some of that spending power in supporting constituency campaigns, which may be pressing hard up against their expense ceiling.

Of course, big cheques cannot simply be handed over by a national party campaign to the local one. It would be too visible. But goods and services in kind are much harder to keep in focus from outside. Even so, existing election law requires the constituency agent to give a fair account of any goods and services received below cost, and that that difference should be taken into account as a donation in lieu. In practice, help has to be a little more nuanced and a little more distanced from the agent. That was the nub of the fracas in Thanet. The election court saw through the Conservatives’ sleight of hand, so now we have Clause 18.

I call Clause 18 the “get out of jail free” clause. No notional spending by a party in a constituency will count unless the local agent or responsible person has “directed, authorised or encouraged” that spending. It probably does not work, although the dialogue between the party and the agent would be an interesting one to hear, would it not? “Hi Mr Agent, just a quick call from national HQ to let you know we are sending in a couple of teams to work alongside your people for the next couple of weeks. No big deal, it won’t cost you a penny. Now, don’t say a word, I don’t need any encouragement from you. It is just that your seat polling figures are slipping, so we think you need some help.” Was there any authorisation or encouragement? No, he did not encourage anybody. He did not open his lips.

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[Lord Hodgson of Astley Abbotts (Con)]

I think the Electoral Commission is a special case because we are talking about an elections Bill, but it goes wider than that. My noble friend Lord Blencathra is hot on this. He has a list of bodies that are, as he would say, running too free, but the Electoral Commission is a special case because of the nature of the Bill we are discussing. A subsidiary question is, do we need more codes elsewhere? I have some amendments down later on, which we shall get to on Thursday, which will provide a way of clarifying and giving third-party campaigners some security and safety about what they are doing— I think that is much more important. However, that is a discussion for Thursday.

My last point is to the noble Lord, Lord Collins, about his Amendment 30B. We have said again and again that we need to have our election law in one place. The fact we are having to discuss RPA 1983 in connection with this Bill in 2022 shows how urgent this is and how the points made across the Committee need to be taken on board by the Government, who at some point need to find time to pull this all together.

[Lord Stunell (LD)]

My Lords, I may be able to join up some of the dots in what has just been said, particularly to draw out the position of the Committee on Standards in Public Life. The noble Baroness, Lady Hayman of Ullock, said it would be really useful to know which of the CSPL recommendations the Government believed—or thought or imagined—they had ticked off: which boxes they have ticked and which they have not. Maybe the Minister in reply could undertake to write us a letter which sets out the recommendations and whether the Government have, have not or have partly fitted them into the Bill; I think that would be to the benefit of the debate. Of course, the very first recommendation of the CSPL in that report is that there should be a comprehensive Bill on all election law, as set out by the Law Commission. I know the Minister, in replying at Second Reading, explained that it was all too busy and too complex, so recommendation 1 is not going to happen at this time, but not doing recommendation 1 is causing problems with a whole lot of other things that are happening.

In defence of Amendment 25A, proposed by my noble friend Lord Rennard, the current position is as it was when the Electoral Commission drew up guidance in 2020. It submitted it to the Cabinet Office so that it could be published as a statutory instrument and, whatever the defects of statutory instruments, its guidance would in fact have come before the House. So, there is a downstream process—it may not be very effective, but it does to some extent, I hope, tick that particular box.

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I hope that these comments will provoke the Minister to give some commitments, even if he is not prepared to accept the amendment—I have no doubt that he is not prepared to do that. We are trying to generate a discussion in which we may be able to get some more positive commitments from the Minister than we have so far had.

[Lord Stunell (LD)]

My Lords, on Amendment 28B, which is about transparency, perhaps the Minister could comment on some of the recommendations in the CSPL report which related precisely to the point of transparency of election expenditure and its availability in electronic form so that it could be studied more widely and easily. Obviously, that clearly requires legislation and might well properly have been in the Bill.

[Baroness Scott of Bybrook (Con)]

My Lords, these amendments from the noble Lord, Lord Collins of Highbury, relate to existing provisions in electoral law in respect of codes of practice on election expenses for candidates that the Electoral Commission may prepare.

We have included measures in Clause 19 to ensure that any code of practice on candidate spending from the Electoral Commission is sufficiently broad to fully serve the purpose of explaining the rules on candidate spending, which are set out in the Representation of the People Act 1983. We are making this change to put the scope of the guidance beyond doubt. It is important that the guidance is comprehensive, so that we can address concerns raised from across the political spectrum on notional expenditure.

Amendment 25B would require the commission to issue new guidance at least every 10 years. As the noble Lord said, the commission is already able to amend any such code as required from time to time and must reflect the rules as set out in law. Clearly, the Electoral Commission is expected to keep up to date all guidance, including such a code of practice, and revise it as far as necessary to reflect changes in the law. Therefore, there is no need to legislate in such a rigid fashion.

Amendment 25C would require the Secretary of State responsible for approving the code to consult on that code before its approval. It is for the Electoral Commission to consult whomever it considers reasonable to consult before it submits a draft to the Secretary of State. The Secretary of State can then accept it, with or without modification, and must lay it before Parliament. It is then down to Parliament to consider the code laid before it and decide whether or not to approve it.

Amendment 28A would require the Secretary of State to publish within 12 months of Royal Assent draft legislation to amend the 2000 Act

“for the purposes of increasing the transparency of expenses”.

I say with the utmost respect to the noble Lord that that is quite an imprecise instruction to the Secretary of State. Transparency of electoral expenses is a cornerstone of the UK’s electoral system. Electoral law already has a robust set of controls and reporting requirements which ensure that spending during election campaigns is transparent, and the Bill supports that. Political parties, recognised third parties and candidates are already required to report their election spending, and this includes money they spend on digital campaigning, an issue raised by the noble Lord.

[Lord Stunell (LD)]

I apologise if I was misunderstood. I was referring not to digital campaigning but to the digital submission of election expenses. At the moment, they are often kept in a cupboard in the returning officer’s office and are not accessible in any way. There are also issues of data redaction, and so on, which make it more complex.

[Baroness Scott of Bybrook]

I will take that back and get an answer for the noble Lord. It is an important issue, as the way we will do elections in future will be very different because of new IT.

As I was saying, the new digital imprints regime will also improve the transparency of digital campaigning, requiring those promoting campaign content online, paid and unpaid, to clearly show who they are. With that said, I ask the noble Lord to withdraw his amendment.

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[Baroness Noakes (Con)]

My Lords, I have one further question to add to the questions that have been put to the Minister. New subsection (3C), which will be introduced by Clause 21, refers to calculation of assets and liabilities. Noble Lords will be aware that, as an accountant, I get interested in how assets and liabilities are measured. I understand the concept of net assets, which is assets minus liabilities, and the concepts of gross assets and gross liabilities. What I do not understand is the concept in new subsection (3C)(c) of assets plus liabilities. Under this, if a party had assets of £255 and liabilities of £250—that is, they had net assets of £5—adding the assets and liabilities together would give a figure of over £500, which would bring it within the scope of the new subsection, which, frankly, I do not understand.

[Lord Stunell (LD)]

My Lords, I will comment on Amendment 31, which is about record-keeping. I return to the point I made a few minutes ago: it is about not just keeping the records but access to the records that have been kept. There are plenty of “publicly available” records that are not actually publicly available in real life. Election expenses are a case in point: GDPR has added an extra layer of complexity because they often contain personal details, bank details, addresses et cetera that ought not to be transmitted to other persons. Clearly, these records might well come within the same purview. I do not seek a detailed reply from the noble Baroness as that would be quite unfair, but I hope that, as we proceed, the Government will be able to illustrate that they have considered carefully issues of record-keeping, and, indeed, how the transparency that goes with record-keeping will be maintained in the current and projected circumstances.

[Baroness Scott of Bybrook (Con)]

My Lords, as part of the registration process, political parties are not currently required to submit a declaration of their assets or liabilities. This information becomes available only in their first annual statement of accounts published on the Electoral Commission’s website. Clause 21 brings forward this important transparency to the point of registration.

The noble Lord, Lord Collins, tabled a probing amendment seeking to understand why the threshold for this declaration is set at £500. I am pleased that the noble Lord has highlighted this, and I point to the fact that this measure, including the £500 threshold, was first recommended by the Electoral Commission in its 2013 report.