My Lords, I will start by answering the noble Lord, Lord Collins. He asked twice, once of my noble friend and once of me: what is the problem here? Currently, as the 2018 Supreme Court case revealed, the law is at odds with what the candidates understand in their communities. That ruling has meant that agents are now unsure—we have talked a lot about how difficult it is to get agents —about how to account for notional expenditure. That is exactly what we are addressing in the Bill.
Before I move on from the noble Lord, I will just say how much I agree with him on the importance—to me, the most important thing in our electoral system—of that connection between an individual candidate, whether local or national, and the communities that they are trying to serve, and do serve if they win an election. To me, that is the most important thing in our democracy.
The level playing field was brought up by a number of noble Lords, including the noble Baroness, Lady Bennett, and the noble Lords, Lord Rennard and Lord Wallace. It is important, but the rules that we are putting forward on notional expenditure are designed to maintain free and fair elections. Political parties will not be able to spend more on candidates as a result of these amendments. All spending which is currently recorded will continue to be recorded. These amendments will therefore uphold the level playing field for elections, which, as I have said, form the cornerstone of our democracy. Expenditure that promotes an individual candidature will continue to count towards a candidate’s own spending limit. Expenditure which is joint between a party and a candidate will continue to be apportioned in an appropriate way and reported to the returning officer. The level playing field is continued.
A number of noble Lords brought up national spending limits. Spending limits are different from the protections for candidates which ensure that their agent must approve certain expenditure, but the Government are intending to review party and candidate spending limits for all other polls apart from local elections, which were increased in line with inflation in 2021. It is important that these are uprated in line with inflation, which will create a solid baseline for future reviews.
The noble Lord, Lord Stunell, again mentioned national versus local spending and asked whether this would cause spending to stop being reported and allow parties to spend more on candidates without reporting it. No, it will not. No notional expenditure will stop being reported as a result of this clarification. Benefits in kind which are offered and used by them or their agent, or anyone authorised, directed or encouraged to make use of them on the candidate’s behalf, will still need to be reported. Also, where a third party, including a political party, is spending money to promote
a candidate directly to the electorate, this generally falls under spending in Section 75 of the Representation of the People Act 1983. Those reporting rules will still apply.
The noble Lord, Lord Wallace, asked about transparency. Transparency is indeed there and will continue to be there in all spending on local and national elections.
We have heard already, and it has been said a number of times, that Clause 18 clarifies the law on notional expenditure, making it clear that candidates need to report only benefits in kind—that is, property, goods, services and facilities that are provided for the use or the benefit of the candidate at a discount or for free—which they have actually used or which they or their election agent have directed, authorised or encouraged someone else to use on their behalf. I think it was the noble Lord, Lord Wallace, asked about somebody ringing up from central office and saying that they are bringing down a bus. I suggest that you will have either authorised or encouraged it; I do not believe you would say nothing on the end of that phone if that is going to happen. This is what was already widely understood to be true. Nothing much is changing; we thought that was true prior to the Supreme Court judgment in the matter of R v Mackinlay and others.
In its 2019 report on electoral law, the Public Administration and Constitutional Affairs Committee called for consultation to take place on how the law on notional spending could be clarified. In evidence to PACAC, the Labour Party said that it would be supportive of legislation
“that would serve to clarify Parliament’s intention as to the extent the election agent is responsible for expenditure by third party campaigns to support their candidates.”
So the Labour Party, in PACAC, was in support of this. That is precisely—