Elections Bill Debate

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Department: Cabinet Office
Lord Collins of Highbury Portrait Lord Collins of Highbury (Lab)
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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 Portrait Lord Woodley (Lab)
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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.

Lord Mann Portrait Lord Mann (Non-Afl)
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My Lords, when dealing with election law, it is always worth looking at unintended consequences. I could speak at length about trade unions, the Labour Party and funding arrangements. During the 1997 election, I was described by the Sunday Times as the “bag man”.

That has been covered. I shall restrict myself to two unintended consequences which the Government would not have expected and which I think will emerge. The first is the so-called dining clubs. Some years ago, I did quite a lot of work on stopping them meeting in here. The dining clubs are primarily a Conservative Party-supporting concept and institution. Occasionally, there are some in other parties. This is a long-standing way in which the Conservative Party has raised money— in my view, perfectly legitimately. The unintended consequence that I read in the legislation as framed is that, at the moment, electoral law requires only the net income to be considered. If £30,000 is spent on a dinner and £10,000 or £20,000 is raised, there is a specific legal requirement as to how this is accounted for. It is well and adequately covered in the law. However, this clause seems to say that the entire expenditure will have to be accounted for. This is not a problem for national parties, but it is a problem for individual candidates.

Until the last five years it was possible to know when a general election would be. I am in a minority in thinking that it is not a good idea to move away from fixed-term Parliaments. If an election is called at the whim of the Prime Minister of the day, the candidate will not know where this expenditure will fit with candidate expenses. I predict the unintended consequence of the possibility of a legal case which could lead to a duly elected Member of Parliament no longer being a Member of Parliament. I urge caution on this.

A second unintended consequence could be much more widespread. It concerns the use of Labour, Liberal and Conservative clubs for political campaigning—otherwise known as elections. I understand the law and, as I have worked in this area for a long time, I am pretty sure that I am right. At the moment, the law is fairly loose in that a Conservative Party campaign can be based in a Conservative club. Many are. This seems reasonable. There is probably a slight advantage in that there are more Conservative clubs these days than Labour or Liberal clubs. This does not seem to impact on our democracy in any undue way. However, this clause would make it necessary to account for this as joint campaigning and therefore election expenditure. It would become a nightmare of defining what is expenditure, when it is clearly joint campaigning for the officers of an independent Conservative, Labour or Liberal club, to agree to have a campaign base inside their club. As everyone knows, this is common across all three parties. One could easily cite scores of examples—sometimes there is more than one in the same election in one constituency.

That does not seem very clever. Again, people will have a field day with picking holes in it. When one looks at what I think are the appropriate, minimal amounts of spending in any one constituency, this is pretty major for our democracy. It is obviously not the Government’s intent. As ever, with electoral law, unintended consequences are the problem. There is a big problem with this clause.