My Lords, Amendments 51, 52 and 53 were tabled by my noble friend Lady Noakes, whom I thank for sharing her considerable expertise in and knowledge of this topic. Her constructive engagement with the Bill, particularly this clause, has been gratefully received in order to ensure that the law works effectively and as intended.
Asset declarations upon registration as a political party is an important matter. In answer to the question of the noble Baroness, Lady Hayman, in Committee, I say that this measure was recommended by the Electoral Commission in its 2013 and 2018 reports—A Regulatory Review of the UK’s Party and Election Finance Laws, and Digital Campaigning: Increasing Transparency for Voters. This led to the Committee on Standards in Public Life making the very same recommendation in its 2021 report Regulating Election Finance.
Clause 22 introduces provisions that will require new political parties to declare whether they have assets or liabilities in excess of £500 when they register with the Electoral Commission as a political party. Those with assets or liabilities in excess of £500 will be required to give a record of them as part of their registration. This will provide an increased level of transparency regarding a political party’s financial position at the point of registration. As part of the registration process, new political parties are not currently required to submit a declaration of the assets they own or liabilities they have. This information only becomes available in their first annual statement of accounts, published on the Electoral Commission’s website, which may be up to 18 months after registration.
The central policy aim of Clause 22 is to ensure greater transparency regarding the financial situation of new political parties. It is my and the Government’s view that my noble friend Lady Noakes’s technical amendments make this clearer and easier to understand for political parties registering with the Electoral Commission. These amendments will remove the requirement to add together the assets and liabilities, therefore bringing this clause into line with the more standard accounting practices that my noble friend has shared with us. I will read Hansard tomorrow and make sure that the noble Lord has a written answer to the questions that he asked. Therefore, I am pleased to say that the Government support this amendment, and I urge the noble Lords to do so too.