My Lords, in moving Amendment 166, I wish to speak also to Amendment 166B. At Second Reading, a number of noble Lords expressed concern about the changes to the existing limits on controlled expenditure that Clause 27 seeks to introduce. Justification for such a change is obviously necessary. The Explanatory Notes provide no assistance in understanding the rationale for this change. In his response at Second Reading the Minister, the noble Lord, Lord Wallace of Saltaire, did not explain what problems had been caused by the existing limits. I am confident that if there was sound justification for reducing the expenditure limits based on past experience of the operation of Section 85 of the Political Parties, Elections and Referendums Act 2000 within its limited scope of activities, the Minister would have advised the House of that. That is particularly so where justification was sought by noble Lords, but none was forthcoming.
If there have been no problems, why reduce the limits which have been in existence for at least 13 years? Moreover, how can the Government justify reducing expenditure limits while at the same time increasing the range of qualifying activities? In his reply, will the noble and learned Lord the Advocate-General please answer the following questions? First, what is the reason for Clause 27(1)? Secondly, what problems have been caused over the years by having the existing limits? Thirdly, in proposing to reduce the limits, what assessment did the Government make of the likely increase in expenditure caused by the extension of controlled activities introduced by Clause 26? If the noble and learned Lord has no answer that justifies this extreme provision, will he acknowledge the strength of feeling that exists that this clause is grossly unfair, is a disproportionate interference in the right to freedom of speech and political engagement, and is an obstruction to democracy?
Noon
On Monday in Committee, the noble and learned Lord repeated the Government’s commitment to bring forward amendments on Report that will increase the registration thresholds. That is a welcome acceptance by the Government that Clause 27(1) cannot remain in its present form. In these circumstances will the noble and learned Lord accept this amendment today to remove this clause? The effect of that will be to restore the status quo, and the Government can start afresh with their thinking about the appropriate limits informed by the debates that we are about to have today. Thereafter, the Government can come forward with a clause that is more appropriate and can be justified by Ministers.
I turn to Amendment 166B, which goes further than the previous amendment. The effect of the previous amendment is to restore the status quo as far as financial limits are concerned but it makes no allowance
for the increase in the list of activities introduced by Clause 26. The inclusion of these activities justifies an increase in the present limits. I acknowledge that there should be some limit, but as the noble Lord, Lord Horam, said in his maiden speech:
“It is important not to damage civil society or freedom of speech”.—[Official Report, 22/10/13; col. 917.]
That is undoubtedly recognised by many noble Lords who spoke at Second Reading and by noble Lords who have put down similar amendments to increase the limits, albeit to different levels from me.
The current limits are £10,000 for England and £5,000 for each of Scotland, Wales and Northern Ireland. The amendment in the name of the noble Lord, Lord Hodgson of Astley Abbotts, suggests an increase to £14,000 and £7,000 respectively, whereas the amendment in the name of my noble friend Lord Ramsbotham proposes that they should be increased to £20,000 and £10,000 respectively, reflecting the recommendation in the excellent report of the Commission on Civil Society and Democratic Engagement. I join other noble Lords in congratulating my noble and right reverend friend Lord Harries of Pentregarth and his committee on their sterling efforts in its production.
My amendment adopts a different approach from that of other noble Lords. It abolishes the distinction between the constituent parts of the United Kingdom and proposes an increase to £25,000. The fifth report of the Committee on Standards in Public Life, The Funding of Political Parties in the United Kingdom, which was presented to Parliament in October 1998, recommended that the expenditure limit should be fixed at £25,000, hence my choice of that figure. No distinction was drawn in that recommendation, which was number 55, between the constituent parts of the United Kingdom. In their response, presented to Parliament in July 1999, the Government accepted the proposal for a scheme of registration for third parties but fixed the limit at £10,000. That response did not distinguish between the constituent parts of the United Kingdom. The footnote to paragraph 7.27 of that response is as follows:
“The Government believes that the lower threshold of £10,000, rather than that of £25,000 recommended by the Neill Committee, is appropriate, particularly in the context of third-party expenditure in Scotland, Wales and Northern Ireland, where expenditure of even £10,000 could have a significant impact”.
There is a hint of a distinction there, but the government response did not go as far as drawing one. I have been unable to find any subsequent explanation for setting the limit in the other countries of the United Kingdom at half the limit of £10,000 allowed for England. I recognise that a distinction should be drawn between the various countries when one considers total expenditure by a recognised third party in each one, because that distinction reflects the number of constituencies in each one. That distinction is preserved in paragraph 3(2) of Schedule 10 to the 2000 Act, but I do not understand the need for a distinction when it comes to the threshold for registration. My noble and right reverend friend Lord Harries of Pentregarth observed that the registration requirements imposed a,
“bureaucratic burden on small charities or campaigning groups, especially during the actual election period”.—[Official Report, 22/10/2013; col. 914.]
Similarly my noble friend Lord Best referred to the new list of controlled activities leading to a “disproportionately onerous bureaucracy”. That bureaucracy could operate to discourage groups from engaging in political debate at a crucial time in the electoral process.
If one is to encourage democracy and keep that bureaucratic burden to an absolute minimum, as high a figure as possible should be set within the overall limits of total expenditure. That approach will also benefit the Electoral Commission by reducing the number of organisations that it requires to monitor; £25,000 is below the current total allowable expenditure for each country, although I appreciate that it will exceed the total expenditure proposed in the Bill for each of Wales and Northern Ireland. Obviously, if these new limits are approved for these countries, a different figure should be fixed for each, but this amendment proceeds on the basis of current figures. On any view, even if changes are proposed in the Bill, the figure of £25,000 would seem appropriate for England and Scotland, because that is below the proposed overall allowance for each of these countries. I beg to move.