I note, however, the point that the noble Lord has made.
Let me now turn to the second part of the Bill. Part 2, put simply, requires those who want to influence the outcome of a general election to be transparent in
doing so. The changes proposed update a system of regulation which has been in place at the past two UK parliamentary general elections.
Noble Lords will no doubt be aware of the influence that third parties can have on elections. This influence is often very positive, but we believe it should be proportionate. Despite existing controls, there is a real risk of distortion by those who seek to unduly influence the outcome of the election. The Bill takes forward a number of important measures to prevent this occurring.
Expenditure will now be more fully recorded and disclosed. Donations to third parties will now have to be published in advance of an election, rather than after. Certain third parties will also have to provide a statement of accounts. The spending limit for third parties will be lowered. Thirteen years ago, the existing spending limit was fixed in legislation at 5% of the maximum campaign expenditure limit for political parties. This amount was considered quite generous by the organisation that recommended it, the Committee on Standards in Public Life. The committee also noted that groups of third parties could outnumber expenditure by candidates or political parties. That argument remains valid today. Reducing the limit to 2% of the maximum campaign expenditure limit for political parties combats the risk of third party expenditure being used to influence elections. The reduction to a lower, but still very significant, sum is justified. To that same end, the Bill also introduces a measure that will prevent third parties directing the entirety of their spending limit at a single constituency or local area. It will become more difficult for large, well-funded campaigns to overwhelm the local political landscape.
The test for determining if a third party’s expenditure is in fact controlled expenditure is the same in both the Bill and existing legislation. Only expenditure that can,
“reasonably be regarded as intended to promote or procure electoral success”,
of parties or candidates will be regulated and count towards a third party’s spending limit.
Currently only expenditure on election material is regulated. This Bill extends the range of activities that are regulated to other activities such as public rallies and organised media events. This is the same list that applies to the activities of political parties. It implements a very sensible recommendation by the independent regulator, the Electoral Commission.
I should also make clear what this Bill does not do. Noble Lords will be aware that some charities and other organisations have expressed concern that the Bill will prevent campaigning on policy issues. I can reassure the House that only those campaigns that promote electoral success will be regulated.
It is the Government’s belief that the vast majority of charities or other groups campaigning for their preferred policies will not be affected by the Bill. This belief is based on the guidance of the Electoral Commission and its experience of regulating third parties at the 2005 and 2010 UK parliamentary general elections. At those elections charities and other campaign groups were not prevented from engaging with, commenting on or influencing public policy.
No elements of this Bill will deprive third parties of the ability to make a contribution to political debate. The regulatory requirements strengthened by this Bill are proportionate. Third parties will not be precluded from campaigning. They will simply be brought into an enhanced spending and donations reporting regime. As a result, the process as a whole will become more transparent.
I now turn to Part 3, which addresses a gap in enforcing existing duties. Section 24 of the Trade Union and Labour Relations (Consolidation) Act 1992 requires unions to maintain a register of their members’ names and addresses, and, so far as is reasonably practicable, to keep it accurate and up to date. I hope noble Lords will agree that this measure always was, and remains, reasonable.
Under the Act, however, union members, employers and the public cannot be wholly assured that a register is up to date. The Bill therefore requires unions to provide an annual assurance to the certification officer. Those with more than 10,000 members will be obliged to appoint an independent assurer. The Government are keen not to inhibit the operation of small unions—