Skip to main content

Election Expenditure

Volume 451: debated on Monday 6 November 2006

22. What plans the Electoral Commission has to examine the limits on expenditure by candidates in general elections; and if he will make a statement. (99167)

The Electoral Commission has no current plans for such a review. Its recent recommendations on the variation of election expenses for candidates at UK parliamentary elections came into force on 4 March 2005. The commission also recommended a more fundamental review of the candidate and party spending limits. That is now being considered as part of Sir Hayden Phillips’ review of party funding.

I thank the hon. Gentleman for his helpful reply. We have only to look across the Atlantic to realise what happens when there are no effective limits on national party expenditure. However, although the limits for national expenditure may be too high, all candidates for and Members of Parliament could make a clear case for increasing expenditure limits for local candidates somewhat. At the moment, £7,000 or £8,000 barely covers one direct mail shot to all our electors. Will the hon. Gentleman consider urging the Electoral Commission again to examine the matter more fundamentally?

The hon. Gentleman will know that when the commission carried out a review in 2004, it took the view that higher limits for candidates’ individual expenses would enable them to run more effective campaigns, ensuring that their messages reached more voters. Coupled with a lower limit for national party spending, the commission believes that that would encourage parties to channel more of their funds into local campaigns. Of course, that is one of the issues being considered by Sir Hayden Phillips, whose review is expected shortly.

When Sir Hayden Phillips has finished his review, which we understand may be at about the turn of the year, does the hon. Gentleman anticipate that the Electoral Commission and the Speaker’s Committee will examine not just whether we ought to reduce the total limit of campaign expenditure, which the public want, and whether the official election campaign should have a slightly larger limit, but whether to stop the huge expenditure in support of an individual candidate before the general election begins? The public have shown no appetite for that activity, which seems to be wasteful of public expenditure and party funds. It would be a service if the hon. Gentleman and his colleagues recommended strongly that that expenditure should be capped at a pretty low level.

The Electoral Commission has been involved in a range of initiatives in support of Sir Hayden Phillips’ review, and that is precisely one of the issues on which it has focused.

Further to the comment made by the hon. Member for North Southwark and Bermondsey (Simon Hughes), perhaps the Speaker’s Committee ought to consider the activities of the midlands industrial council, which, prior to the 2005 general election, pumped enormous sums of money into a range of midlands seats, all of which, coincidentally, happened to be Labour marginals, and all of which had a bigger than average swing. As a part of that covert and shady activity, some fine Members were lost.

The Speaker’s Committee does not get involved in the detail of administrative matters, but the hon. Gentleman has made his point and it will have been heard by the Electoral Commission.

Does my hon. Friend accept that there is strong public opposition to elections being more heavily funded by the taxpayer and the Government? I am happy to associate myself with the comments of the hon. Member for Nottingham, North (Mr. Allen) in respect of reducing dramatically the amount that parties spend nationally, but perhaps greater funding of local expenditure to enable candidates to put out better literature might be considered.

Further to the comments of my hon. Friend the Member for Nottingham, North and the hon. Member for North Southwark and Bermondsey, is not it an important principle in this country that no British person should have a better chance of election either because they are wealthy or because they have wealthy friends? If so, it is important that we consider expenditure not only during elections but in the year preceding, when many people pump tens of thousands of pounds into certain constituencies—particularly those which are potentially Conservative-leaning—so as to gain an unfair advantage.

The review being carried out by Sir Hayden Phillips is very important, and the hon. Gentleman and anyone else is free to make their views known to Sir Hayden Phillips, whose report is expected in the coming weeks.