My Lords, as noble Lords will know, Clause 19 is there to clarify the law on benefits in kind and make it clear that candidates need to report only benefits in kind that they have actually used or which they or their election agent have directed, authorised or encouraged someone else to use on their behalf. We had some discussion on this in Committee, as the noble Lord acknowledges. This was already widely understood to be true, prior to the Supreme Court judgment in R v Mackinlay and others. The Supreme Court judgment has led to concerns that candidates and agents could be responsible for spending they had not consented to or were unaware of or not involved in. This is an unacceptable situation and risks a chilling effect on people willing to put themselves forward as candidates and agents.
The noble Lord has been so kind as to refer to the positive engagement we had and I thank him for his continued interest in and engagement on the topic. In response to some of the concerns he raised, including those raised again today, I am happy to provide clarity on the government position. The noble Lord, Lord Rennard, asked two specific questions and I can say to him that the Government are absolutely committed to the long-standing principle of a level playing field for general election campaigns, whether in campaigning being carried out at constituency level or nationally. The noble Lord referred to a statement made by my noble friend Lord Young of Cookham in 2019 when agreeing with the importance of the principle of a level playing field in relation to spending at elections. The Government maintain the commitment my noble friend gave; nothing in the Bill seeks to undermine that principle.
The proposals in the Bill will not change the fundamental principle that party spending in support of a particular candidate in a local area falls to be recorded as candidate spending against the local limit. Instead, the clauses bring forward changes seeking to maintain the level playing field by ensuring that all candidates and agents across the political spectrum are clear and confident in their legal responsibilities. Clause 19 also makes an equivalent amendment to the same rules for other types of campaigners, such as political parties and third-party campaigners, to ensure that the rules are consistent. We believe that these changes will bring much-needed reassurance and clarity to candidates and their agents on the rules which apply to notional expenditure for reserved elections. In combination with expanded statutory guidance—which we will discuss shortly—from the Electoral Commission on this matter provided for in Clause 20, this measure will support compliance with the rules and ensure that those wishing to participate in public life can feel confident doing so, clear in their obligations.
The noble Lord, Lord Rennard, asked a further and very specific question. I can say to him that the Government are not acting in response to the judgment of Southwark Crown Court in 2019 in relation to campaigning in South Thanet in 2015. However, the Supreme Court’s judgment in 2018 related specifically
to the consideration of a particular point of law and concluded that there was no requirement for authorisation in Section 90(3) of the 2000 Act, which was contrary to the understanding of many and led to concerns about what expenses could potentially be incurred on a candidate’s behalf even without their knowledge. As a result, there have been calls from across the political spectrum for clarification of those rules. A cross-party committee of MPs, PACAC and the Law Commission have called for clarity on the rules in recent reports. The changes enacted by the Bill will only clarify the law so that it can be commonly understood. As I said, any uncertainty could lead to a democratic chilling effect, with candidates and election agents, who are often volunteers and fearful of their personal circumstances, unwilling to expose themselves to risk.
Finally, it is important to note that Section 75 of the Representation of the People Act 1983 already prohibits “local” third-party spending over £700 which has not been “authorised in writing”; therefore, it requires specific authorisation. Where such spending is authorised by a candidate, the candidate must also report on the spending incurred by the third party. If a third party, which could include a political party, spends over that threshold without authorisation, an offence has been committed. The Elections Bill does not alter this. Where a third party, including a political party, has provided property, goods and services free of charge or at a discount, or has made use of property, this must be recorded as a notional expense.
I can assure the noble Lord on those points that we are absolutely committed to the assurance my noble friend gave and that we are not acting in response to the judgment of Southwark Crown Court in 2019 in relation to 2015 and the issues of uncertainty that have arisen. Therefore, I hope that the noble Lord will accept those assurances and be ready to withdraw his amendment that would remove this clause from the Bill.