Election spending limits: we’re going to spend, spend, spend (or are we)?

Increasing the amount of money that political parties can spend during election campaigns might not sound sensible, but as Justin Fisher explains, the government’s proposal to do so seems reasonable in principle, but must be implemented with care to avoid disproportionately benefiting the two most popular parties.

On 20 July, Michael Gove, the Secretary of State responsible for overseeing party finance regulation, announced that party (and candidate) campaign spending limits for Westminster elections were to be increased in line with the value of money. This received little fanfare and was only touched upon briefly in the press the following month. This proposed change is both welcome and significant. So why is the change being proposed? To understand this, it is worth explaining how party spending limits are calculated.

Party Spending limits

Party (rather than candidate) spending limits were introduced by the Political Parties, Elections & Referendums Act 2000 (PPERA). Setting the period of regulation as 365 days before a general election, the act devised a formula for parties based on the number of constituencies in which a party fielded a candidate. The overall party spending limit was set at the number of seats contested multiplied by £30,000. Thus, at the 2019 general election, if a party fielded candidates in the 631 constituencies in Great Britain (assuming they did not contest the seat of the Speaker), the national party spending limit would be £18,930,000.

However, the sum per constituency (£30,000) set by PPERA in 2000 has never been adjusted for inflation. As a result, the national party limit is approximately 50% lower in real terms than when it was introduced. When accounting for whole-year inflation, the £18,930,00 spending limit equates to approximately £9,473,344 at 2022 prices. This erosion of the level in real terms has occurred over a period of relatively low inflation. So, given the relatively high rates of inflation experienced in 2023, this real-term figure will be even lower come the end of this year.

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Reforming elections: assessing the government’s proposals

In September, the Constitution Unit hosted a distinguished panel of experts to discuss the government’s plans for reforming election law, as set out in the Elections Bill and draft Online Safety Bill. Tom Fieldhouse summarises the discussion.

The Elections Bill, and the draft Online Safety Bill are two important parts of the government’s reform agenda which, in their current form, stand to significantly alter the UK’s constitutional landscape.

With the Elections Bill making its way through parliament, and the draft Online Safety Bill undergoing pre-legislative scrutiny, the Constitution Unit hosted a webinar on 23 September entitled Reforming elections: assessing the government’s proposals. The event was chaired by the Unit’s Deputy Director, Professor Alan Renwick, and heard from four expert speakers: Louise Edwards, Deputy Director of Regulation at the Electoral Commission; Laura Lock, Deputy Chief Executive of the Association of Electoral Administrators; Justin Fisher, Professor of Political Science and Director of the Policy Unit at Brunel University; and, Baroness (Nicky) Morgan of Cotes, former Secretary of State for Digital, Culture, Media and Sport (2019–20) – now a Conservative peer and Vice Chair of the APPG on Digital Regulation and Responsibility.

The summaries below are presented in the order of the speakers’ contributions. The full event, including the Q&A, is available on our YouTube page.

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The Elections Bill: some good ideas, but more thought needed

The Elections Bill has been subject to both criticism and praise, as discussed by our Deputy Director Alan Renwick on this blog, and numerous contributors to a parliamentary inquiry. Justin Fisher, a panellist at the Unit’s recent seminar on the bill, argues that it has several good proposals, but that more thought about certain aspects is required.

Of all the provisions in the Elections Bill, most attention has been paid to plans to introduce voter identification and greater political control of the Electoral Commission. Those provisions are obviously important, but the bill also includes significant proposals relating to notional expenditure and ‘third parties’ – organisations that campaign in elections but do not themselves field candidates. Some of these proposals, while ostensibly positive and well intentioned, have the potential to significantly affect the conduct of elections if they emerge from the scrutiny process unchanged. Others represent a disproportionate response, which are likely to lead to difficulties.

Notional Expenditure

Notional expenditure refers to campaign spending in and around constituencies which does not promote any particular candidate. Such spending is typically ascribed to the party at national level rather than the candidate at constituency-level. It is a by-product of the fact that there are different expenditure limits for candidates and for parties, and that under our electoral system, all parties target their campaign activity as far as possible on seats that they are seeking to gain or hold. Critics argue that candidate spending limits are rendered meaningless by parties’ targeting efforts, and matters came to a head at the 2015 election when in one seat, the candidate, his agent and a Conservative Party official were charged following allegations that campaign spending had not been properly declared. The candidate and agent were acquitted, but the party official was found guilty. The bill adopts a conservative approach to the issue but a sensible and most importantly, a workable one.

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The Elections Bill: examining the evidence

The Elections Bill is currently being scrutinised by the Commons Public Administration and Constitutional Affairs Committee, which has received a large amount of evidence from a wide range of academics and organisations. Ahead of the Unit’s September webinar on the bill, Emilia Cieslak offered a summary of the key themes, including the parts of the bill that are welcomed, and the sections that have caused concern.

The Elections Bill currently before parliament aims to tackle a wide range of issues, including fighting electoral fraud, increasing parliamentary supervision of the Electoral Commission, and extending the franchise to more overseas electors and EU citizens. The bill recently received its second reading in the Commons. It is currently going through committee stage and is also being reviewed by the Commons Public Administration and Constitutional Affairs Committee (PACAC). While some provisions have proved popular, many have attracted criticism.

This post reviews the written evidence submissions to PACAC’s inquiry, focusing largely on the most controversial provisions: the introduction of photographic voter ID, changes to parliamentary scrutiny of the Electoral Commission, and reform of campaign spending rules. Before addressing those controversial aspects, however, I highlight sections of the bill that are generally welcomed.

Popular provisions

The bill proposes to abolish the current 15-year limit after which overseas electors become ineligible to vote. This has so far met very little opposition, and has strong support from groups representing British citizens living abroad. Several submissions (for example, from the Electoral Commission and Association of Electoral Administrators) do, however, draw attention to practical difficulties. And one submission, from Professor Justin Fisher, argues that the principled case for the change is not straightforward.

Meanwhile, no submissions oppose extending voting and candidacy rights to EU citizens through bilateral arrangements with individual member states. Most welcome changes to provision for voters with disabilities, though some identify what they see as flaws in certain elements of those measures.

The introduction of digital imprints is hailed as an overdue, necessary step to tackling the problem of misleading campaign material online. Most respondents writing on the topic argue that the provision is a good start, but that more is needed. Dr Sam Power comments that the provision should be accompanied by a renewed focus on citizen engagement and digital literacy campaigns. The Electoral Reform Society argues for a requirement that campaigners provide invoices on their digital spending, an open database for all political advertisements, and a code of practice on use of sensitive data. Multiple respondents warned about the rapid development of technology which means the legislation will require post-legislative scrutiny and frequent updates to avoid new loopholes developing.

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Why we need an independent Electoral Commission

The UK’s guardian of public ethics is reviewing the role of the Electoral Commission in regulating election finance. The evidence submitted to the inquiry shows wide support for maintaining, and in some ways enhancing, the Commission’s functions. But the regulator’s position is also challenged from some quarters, and the House of Commons Public Administration and Constitutional Affairs Committee is currently conducting its own enquiry. Alan Renwick and Charlotte Kincaid argue that the debate raises important wider questions about the place of checks and balances in our system of democratic governance.

The Committee on Standards in Public Life – the body charged with monitoring ethical standards in public life in the UK – is conducting a review of electoral regulation. The terms of reference focus largely on the role of the Electoral Commission in regulating election finance. The first stage was a public call for evidence, and the responses were published last month. 

Grabbing some media headlines was a suggestion in the response from the Conservative Party that the Electoral Commission might be abolished, with its core functions transferred to other bodies. This was not the only option put forward in the submission. Indeed, the central proposal appeared rather to be that the Commission should continue to operate, but with a more restrictively defined remit. Nevertheless, the general tenor was striking. The submission said: ‘The Electoral Commission consistently lobbies for itself to be given more powers – this is not an argument for doing so. Rather, this is public choice theory in action: quangos seeking to expand their remit for their own sake.’

Following the same logic, however, that is a political party seeking to abolish or curtail the remit of the regulator of political parties. If the argument from public choice theory has any force against the Electoral Commission, it has the same force against the Conservative Party. Both the Commission and the Conservatives have interests at stake here. But both also have a wealth of relevant experience. Their arguments should be judged on their merits, with an eye to the possibility that they may be skewed by the organisations’ particular interests.

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