Charities (Protection and Social Investment) Bill [ Lords ] (Fifth sitting)

Wes Streeting Excerpts

Thursday 7th January 2016 Public Bill Committees

[Anna Turley]

My hon. Friend is absolutely right. That is their full purpose, and they should feel entirely able to stand up and challenge the Government of the day, whoever they may be, and any political party if they feel that their policy does not support their charitable objectives.

[Wes Streeting (Ilford North) (Lab)]

Some of the remarks made this morning do a disservice to many Conservative councillors and Members of Parliament. I can even think of Government special advisers with whom I have worked in the voluntary sector as paid staff, and they all did a very good job in the voluntary sector and are doing reasonably well in government.

[Anna Turley]

My hon. Friend is absolutely right, and he is right to pay that tribute. There is often a political motivation behind such proposals that resents the fact that a party, once it is in power, has to accept that people will challenge it and hold it to account.

--- Later in debate ---

[Anna Turley]

This is not about party politicking. Is the hon. Gentleman seriously suggesting that an organisation such as Shelter should simply stick to providing advice to Members and not seek to challenge the Government and politicians of all sides, holding them to account? That is what we are seeking to protect.

The Commission on Civil Society and Democratic Engagement also found that voluntary groups embroiled in Government contracts regularly face threats to remain silent on key Government policies. Many neglect to speak out on issues plaguing society for fear of losing funding or inviting other unwelcome sanctions. The health of our democracy depends on people’s right to campaign on the issues they care about. The lobbying Act was an attack on our democracy. It hits charities and campaigners and limits their right to fight for important causes while allowing professional lobbies to escape scrutiny. It has left expert organisations that have a vital contribution to make to public debate unsure whether they are allowed to speak out. Governments should not be afraid of criticism or lively debate. As the old saying goes, politics is too important to leave to politicians. We seek to protect this right of charities to have a loud and respected voice in our democracy. I commend the new clause to the Committee.

[Wes Streeting]

It is a pleasure to serve under your chairmanship, Mr Hamilton. I add my voice to those congratulating you on your new role in the shadow foreign affairs team. I am sure your experience will be greatly appreciated throughout the whole House.

I confess to feeling some responsibility for this discussion. The question we should always ask when debating any potential law is: what is the problem we are trying to fix? I understand the problem the new clause is trying to address. It is, as my hon. Friend the Member for Redcar described, the chilling effect that was undoubtedly caused by the gagging law passed by the previous Parliament. I will talk about that chilling effect shortly, but it is worth remembering why that gagging law was passed in the first place. It was, of course, because some very foolish Liberal Democrat MPs and a few Conservatives made the decision prior to the 2010 general election to sign a pledge in a Committee Room down the corridor with me, as president of the National Union of Students, that clearly stated, “I will vote against any increase in tuition fees and will campaign for a fairer funding system.”

The irony was that, prior to the general election, I was hauled in by members of the Liberal Democrat party leadership, who subsequently joined the Cabinet, to explain why the NUS had gone so soft and was not demanding abolition of all fees in line with Liberal Democrat policy. That would have been laughable in itself, given subsequent events, were it not for the fact that previously, as leader of the NUS, I was dragged up to a particularly dreary Liberal Democrat spring conference at Harrogate expecting to endorse its new graduate tax policy as the “Labour” president of the NUS. Of course, it was never a party political role—[Laughter]—but nevertheless, there I was, ready to endorse the Liberal Democrat graduate tax policy, which never came to fruition.

That is an important example because, even as president of the National Union of Students, which is arguably one of the most small “p” political charities where candidates stand on political tickets—I was elected as a Labour president of the NUS—there was never any doubt in my mind about who I was accountable to and who I served. I was elected first and foremost—in fact, only—to serve students. If that meant going up to a wet and windy Liberal Democrat spring conference to stand alongside its leader and endorse a policy that, sadly, did not come to pass, I was prepared to do it.

In the same way, I told Lord Mandelson, when he was Business Secretary, that unless there was student representation on the Browne review, he would find me and 100 other student union presidents outside the Business Department holding up signs saying, “Students let down by Labour”. The point is that, whoever is in government, if sometimes they take decisions that impact on beneficiaries or communities that we serve under the auspices of our charitable objectives, we must have the muscle to hold their feet to the fire.

That happens today to Labour politicians up and down the country, whether it is the Labour-led Welsh Assembly Government or Labour in local government. Look at the work that the Refugee and Migrant Forum of Essex and London does. It threatened to take the Government to court over their terrible “go home” vans and was prepared to turn up at its local Labour council to say it must do more to support refugees and migrants.

The Ilford Salvation Army does a load of great work on homelessness, and I want it not just to provide for homeless people with direct provision, but to turn up at the door of their local councillors or Members of Parliament asking them to explain why public policy is having a detrimental impact on those people and how it needs to change.

[Tom Tugendhat]

The hon. Gentleman is making a powerful case for the ability of charities to explain themselves, and I fully support that. Will he point to the part of the Bill or any element of it which prevents that and therefore creates the need for the words “political campaigning”, not just campaigning on issues?

[Wes Streeting]

We are debating new clause 2. Members can see it but, for the benefit of those watching, let me point out that I do not see any reference in it to party political campaigning. It would simply enshrine in legislation the right of charities to undertake political activity. That is important, because a chilling effect followed the gagging law, which had a number of practical implications. For example, charities spent ridiculous amounts of time with spreadsheets trying to calculate their national spend versus constituency spend, and whether they were close to the spending limits and whether that would affect their collaboration with other charities.

I thought the Conservatives were the party that wanted to scrap red tape, yet they have generated a whole load of red tape for voluntary sector organisations whose funds would be better spent on helping their beneficiaries through either direct service provision or lobbying and campaigning. Students unions at the last general election were afraid to hold hustings events. Of course they should do that—it is nonsense that they should not hold those events. The gagging law had a chilling impact.

[Tom Tugendhat]

The hon. Gentleman is being extremely generous in giving way. I do not know about his hustings events, but most of mine were held in churches, which are almost by definition charities. The number of charities that were afraid to hold hustings in my community was zero, so I am baffled as to why he feels that some were afraid about that.

[Wes Streeting]

I am simply citing the representations I have had from my old colleagues at the National Union of Students about the impacts of the gagging law. It is important to put that forward. I was the head of a charity at not one but two general elections. First, I was president of my university’s students union back in 2004, where our “Get out the vote” campaign in Cambridge undoubtedly contributed to the loss of an excellent Labour MP, in the form of Anne Campbell—she had abstained on the Second Reading of the Higher Education Act 2004, which I am sure contributed to that. Secondly, during the 2010 general election, I was president of the NUS.

At that time, charities were well constrained from party political activity and endorsing political parties, and there is unlikely to be a single charity campaigner in the country who cannot cite CC9 of the Charity Commission’s guidance chapter and verse, which is clear about the restrictions on charities in party political campaigning. The gagging law passed in the previous Parliament was a solution in need of a problem. There were no previous problems; it was just that the Liberal Democrats got scared of the consequences. Alas, even the gagging law could not save them.

Finally, on the general attitude to the voluntary sector’s political representation and campaigning, too many Members of Parliament seem to be happy to turn up and have photographs with guide dogs at party conferences, pop along to their local Barnardo’s outreach and have photographs with service users and be there for photographs, leaflets and press releases, yet when it comes to being confronted with the consequences of the decisions this place has made under successive Governments, they do not like the hard truths.

We need to think about the voluntary sector’s reach and its broad focus on speaking up for and serving the most disadvantaged in our society—people who do not know how to find their way into the corridors of power. Incidentally, those in the sector are not like the many commercial organisations that have also had significant amounts of public money, but which can none the less exercise their muscle in Committees, in the corridors in this place and on the Floor of the House. These are charities that speak up for some of the most dispossessed and disadvantaged in our society, and when they say that the gagging law has had a chilling effect, it is incumbent on us to listen and to take this simple, uncontroversial measure to ensure that every charity knows that they are empowered to make political representations to speak truth to power on behalf of their beneficiaries.

[Mr Wilson]

Let me begin by putting things right and congratulating the hon. Member for Cardiff Central on her promotion to shadow Justice Minister, which is something I should have said earlier. My heartiest congratulations to her. Things have warmed up a bit in the Committee this morning. I am glad to see that pulses are racing and faces are reddening: that is a good sign for healthy debate in Parliament.

I happily repeat for the Committee’s benefit what I said in our first sitting, as well as many other times in public: I support charities’ right to speak up for their beneficiaries, whether I, as the Minister with responsibility, or the Government like it or not. I cannot be clearer than that. Charity law already permits charities to undertake non-party political campaigning that furthers the charity’s purposes and that the trustees consider to be an effective use of its resources. That can legitimately involve campaigning to change the law or a policy, and non-party political campaigning to support such a change. That is absolutely clear. Charities must not support a particular political party. That is established by case law. It is defined widely, and it includes a charity promoting a political party event to its members. A charity cannot be used as a vehicle for the expression of the political views of its trustees or staff members.

Perhaps the hon. Member for Redcar got mixed up in what she was trying to say earlier, but she has the chance to put it right. It is clear that what she was suggesting is outside the law. If the Badger Trust were promoting an event for all political parties, that would be different, but promoting one party above another is clearly outside the rules and the definitions.

[Wes Streeting]

Is the Minister seriously saying that there are not charities up and down the country that have put on events hosting senior politicians of all parties and invited beneficiaries? Is he saying that charities should not do that?

[Mr Wilson]

It is astonishing how easily the hon. Gentleman gets the wrong end of the stick. I was clear that it is permitted if it is all parties, not one party. He said that that those charities invite Members of all parties to events, and that is the important distinction. If, as the Badger Trust did, a charity emailed its members to invite them to one political party’s event, that would be considered a very close association with one political party. If it did the same for all political parties, as the hon. Gentleman said without understanding the implications of that, that would be okay.

[Wes Streeting]

I cannot speak with authority about that specific case, but with the notable exception of big set-piece events, such as the Citizens UK events that were attended by the party leaders, we do not seriously expect the Prime Minister to turn up to an event hosted by a national charity and find people such as Natalie Bennett, Nigel Farage and all sorts of other people who will never have his job standing alongside him being given equal weight. Which other random parties should appear with the Prime Minister at charity events?

[Mr Wilson]

I think we are straying into the realms of electoral law rather than charity law, and I am sure you do not want us to stray too far in that direction. The Transparency of Lobbying, Non-Party Campaigning and Trade Union Administration Act 2014 applies to all third-party organisations campaigning for a particular electoral outcome. It does not specifically target charities or prevent them from campaigning to further their charitable purposes. The Charity Commission’s guidance CC9 makes that absolutely clear.

The Hodgson review, which is under way and will report in the next couple of months, will look at all those issues and consider in detail all the representations that are made to it. I think the Opposition should have waited for the review to see the detail of the representations made and whether there is evidence that things are going wrong and that the so-called chilling effect is taking place.

There is no bar to charities or student unions holding husting events, provided they do so in a balanced, even-handed way that furthers the charity’s purposes. Like many other Members, I am sure, I attended the student union debate in my constituency. I am very surprised that any student union was worried about putting on an even-handed debate, open to all parties.

The Charity Commission’s guidance is clear and comprehensive. Unlike primary legislation, guidance can be relatively easily updated, with proper consultation to ensure that it reflects current case law and other developments, such as the rise of social media. In recent years, there have been cases where charities, inevitably, have strayed on to the edges in what they are doing in social media. The guidance on that is obviously fairly new, and it is important that it is there.

I would say simply that the new clause is unnecessary, unless the hon. Member for Redcar and her colleagues are arguing that charities should be able to engage in party politics, in which case I very strongly object. What we heard about the Badger Trust emailing its members asking them to go to a single party political event and sort of supporting the manifesto elements that had been introduced would fall into the category of party political activity. We should keep charities and party politics completely separate. Where charities engage in non-party political activity, they should take extra care to protect their independence and to ensure that they do not give the impression of being politically partisan in any way, and that is the category that would apply with regard to the Badger Trust.

It is right that we have an independent regulator in the form of the Charity Commission to investigate concerns where charities may have overstepped the mark of what is acceptable, and some have done that in social media in the last couple of years. Where the dividing line between charitable and political becomes blurred and charities come to be seen as politically biased or aligned with a particular party, there is a real risk of public trust and confidence in charities being degraded. One of the charities’ strengths is their independence and their ability to stand outside politics, and I would really hate to see that undermined by the new clause.