Statement by , Department for Levelling Up,
Housing and Communities
In July 2023, the Government confirmed its intention (20 July
2023, Official Report, HCWS985) to proceed with
uprating reserved and excepted party and candidate spending
limits and donations thresholds to reflect historic inflation in
the years since the respective limits were set. The intention to
review these thresholds was set out in December 2020, and the
Westminster Parliamentary Parties Panel was consulted in
September 2022. This is a necessary action as many of these
statutory limits, set in absolute terms, have not been uprated
for over twenty years.
Today, the Government has uprated in line with inflation the
expenditure limits for candidates and registered political
parties at UK parliamentary elections, Northern Ireland Assembly
elections and local government elections in England. The same
statutory instrument also uplifts the reporting thresholds for
donations and regulated transactions for political parties,
regulated donees, permitted participants at relevant referendums
and unincorporated associations making political contributions.
These changes are made through the Representation of the People
(Variation of Election Expenses, Expenditure Limits and Donation
etc Thresholds) Order 2023.
The lack of change in absolute terms impacts campaigning ability
given the increased costs of printing, postage and communication,
which is vital for parties and candidates to engage with voters.
For example, a second class stamp cost 19 pence in 2000; it is 75
pence today.
Parliament anticipated this which is why the legislation allows
for these limits to be adjusted to account for inflation. The
Government’s policy is now to increase them so that they are the
same in real terms as the original limits set by Parliament.
It has been more than a decade since the donation reporting
thresholds were last uprated (by the last Labour Government) in
2009, following their introduction in 2000. If these limits are
not uprated from time to time the effect is to cut the thresholds
in real terms. The principle of a threshold for publishing
donations was established following the report by the Committee
on Standards in Public Life (the ‘Neill Committee’) on the
funding of political parties in 1998 (Cm 4057), noting the need
to balance privacy and transparency; the Labour Government's
response in 1999 (Cm 4413) agreed with this principle.
The purpose of these reporting thresholds is to provide
transparency around the granting of larger donations, balanced
with the administrative burden such reporting may create for the
recipient and with the privacy of smaller donors. Uprating these
thresholds will ensure that balance is maintained in line with
the original policy and legislative intent of Parliament when
setting the thresholds. Again, there is no change in real terms.
The Government has decided not to increase the £500 threshold
relating to the point at which a financial contribution is
considered a regulated donation and subject to permissibility
checks. This approach will ensure that the checks on the
permissibility of donations and donors remain as they do now, and
reflects the broader stance the Government has taken to prevent
foreign interference in elections.
The substantive provisions on donation reporting thresholds come
into force from 1 January 2024 to align with the reporting year
for political parties.
The Government has also made the Police and Crime Commissioner
Elections (Amendment) Order 2023. This delivers the uprating of
spending limits for candidates standing at Police and Crime
Commissioner elections. These limits have not changed since they
were first set in 2012, which has the effect of reducing the
spending limits in real terms. The order will be laid before
Parliament and will come into force on 12 December, subject to
annulment in pursuance of a resolution of either House.
Further secondary legislation will follow in due course, to
complete the delivery of spending limits uprating (for local
councils, combined authorities and the Greater London Authority)
and to deliver the Government’s commitment to exempt reasonable
security related expenses from contributing to election spending
limits.
None of these reforms cost taxpayers’ money. Indeed, in Britain,
taxpayers do not have to bankroll political parties’ campaigning.
Political parties have to raise money themselves, whilst
following transparency and compliance rules laid out in law.
Those who oppose party fundraising need to explain how many
millions they want taxpayers to pay for state funding instead.
The Government will further engage with the Parliamentary Parties
Panel and the Electoral Commission to ensure that those affected
are aware of these changes.
Taken together, the measures will support continued democratic
engagement by political parties and candidates; facilitate
continued freedom of political expression and association, whilst
ensuring our elections remain free and fair.
