I shall come to campaign finance shortly, but is that all the right hon. Gentleman has to say on overseas voters?
Let me turn to the voting rights of EU citizens, an important subject that has been asked about. Part 2 of the Bill updates the voting and candidacy rights of EU citizens who reside in the UK and moves to a more reciprocal model that fits our new arrangements. We stand by our commitments to those EU citizens who were resident here before our exit from the EU, so any EU citizen who was a resident before the end of the transition period on 31 December 2020 and has legal immigration status will retain their voting and candidacy rights. That goes beyond our obligations under the withdrawal agreement. For EU citizens who have moved to the UK following our EU exit, local voting and candidacy rights will be granted on the basis of bilateral agreements with the individual EU member states that will reciprocate arrangements for British citizens who live there.
We all want to make progress this afternoon, so let me move on as fast I can through the rest of the Bill. I have set out the ways in which the Bill will bolster the security of our elections; let me move on to the enforcement of electoral law. A critical part of our electoral system is and must continue to be effective, independent regulation, and the Electoral Commission has a vital role to play. Lord Pickles found that the
“current system of oversight of the Electoral Commission—by the Speaker’s Committee on the Electoral Commission—does not provide an effective third-party check on its performance”,
so we think it is right for Parliament to have an increased role. The Bill will introduce a strategy and policy statement that will provide guidance to which the commission will have to have regard in the discharge of its functions. It will be subject to statutory consultation, parliamentary approval and regular review.
We will also improve the parliamentary structures that hold the regulator to account. The Speaker’s Committee on the Electoral Commission currently has a limited remit; the Bill will therefore give it the additional power to examine the commission’s compliance with its duty to have regard to the strategy and policy statement. That will allow Parliament to better scrutinise the work of the commission. Together, the reforms will facilitate parliamentary scrutiny of the Electoral Commission’s work while respecting its independence.
It is a shame that Her Majesty’s Opposition’s reasoned amendment misrepresents scrutiny by Parliament and misunderstands—or again wilfully misrepresents the fact—that the commission remains governed, in law, by its commissioners. We are also clarifying that the Electoral Commission should not bring prosecutions, and that prosecutions should remain with the existing prosecution authorities.
Let me move on to political finance, which right hon. and hon. Members have mentioned. We already have a comprehensive regulatory framework for campaigning that is rooted in the principles of fairness, transparency and the importance of a level playing field. We want to ensure that our electoral law continues to uphold those principles, which is why part 4 of the Bill will update and strengthen our political finance laws to restrict all third-party spending to UK-based entities and eligible overseas electors; to increase transparency around third-party campaigning at elections and the registration of new political parties; and to prohibit parties and campaigners from unfairly expanding their spending limits. The Bill will ensure that campaign spending can come only from sources that have a genuine and legitimate interest in UK elections, by restricting all third-party spending to UK-based entities and registered overseas electors, above a £700 minimum threshold.
On the regulation of third-party campaigners, it is right that those who campaign at elections and seek to influence voters are subject to transparency requirements and rules that maintain a level playing field. Those principles already apply. The Bill seeks to balance the burden of regulation, relative to the level of campaign spending, with the importance of a thriving and diverse public debate.
The Bill will not change the definition of what constitutes controlled expenditure for a third-party campaigner. The Electoral Commission already provides guidance, developed with third-party groups, on what constitutes such expenditure. To ensure that any other legitimate categories of third party that may emerge in future are not significantly restricted in their ability to campaign, a power will be given to the Secretary of State to amend the list of legal entities eligible to register as campaigners under section 88(2) of the Political Parties, Elections and Referendums Act 2000. Any change to that list made via a statutory instrument will be subject to the affirmative procedure and therefore subject to parliamentary scrutiny in both Houses. The Opposition amendment is simply wrong: the last time I checked, democratic parliamentary procedure on an SI is not “unilateral” change by a Secretary of State.