Under the proposals contained in clause 11 (election expenses incurred for a person not yet a candidate) of the Political Parties and Elections Bill, all expenditure incurred by or on behalf of the candidate on matters listed in Part 1 of schedule 4A of the Representation of the People Act 1983, which is used for the purposes of the candidate’s election, will constitute election expenses regulated by the candidate spending limit. For the purposes of this clause, incumbent MPs are treated in exactly the same way as other candidates. Expenditure would only be regulated by the candidate expenditure limit where it meets these conditions.
Section 90ZA(6) of the Representation of the People Act 1983 makes clear that in that Part of that Act any reference (in whatever terms) to promoting or procuring a candidate’s election at the election includes doing so by prejudicing the electoral prospects of another candidate at the election.
Clause 11(4) of the Political Parties and Elections Bill inserts a new section 90ZA(5) into the 1983 Act, which provides that, in relation to election expenses, any reference in Part 2 of that Act to a candidate at an election, includes (where the context allows) a reference to a person who formally becomes a candidate at the election after the expenses are incurred.
Therefore, under the proposals contained in the Bill, expenditure which is used by candidates at the election, including spending which prejudices the electoral prospects of an individual who is or who later becomes a candidate at the election, will constitute an election expense, provided it is incurred on matters listed in Part 1 of Schedule 4A of the 1983 Act. It is immaterial whether such expenditure has been funded by party funds or other means.
The final Impact Assessment for controls on candidate spending referred to the number of closely contested seats at the last general election, in 2005. That was on the basis that it might be inferred that a similar number of seats might be closely contested at a future general election and, as the Impact Assessment noted, it might be said that the proposals in clause 11 of the Bill would be:
“most likely to affect candidates in marginal seats, as that is where early campaigning tends to be focused.”
Because of the unique character of each election, It has not been possible to calculate the exact number of candidates that might be affected in future.
All candidates standing at a general election would be regulated by the new rules, which provide that all expenditure used by or on behalf of the candidate on matters listed in Part 1 of Schedule 4A of the Representation of the People Act 1983, which are used for the purposes of the candidate's election, are regulated by the candidate spending limit. The person's formal candidature status (whether adopted as a candidate or not) does not determine whether or not the expenditure is regulated. The purpose for which expenditure is used will be the key consideration.
Clause 11 (election expenses incurred by a person not yet a candidate) of the Political Parties and Elections Bill amends the definition of election expenses in section 90ZA of the Representation of the People Act 1983. Under the amended section all expenditure incurred by or on behalf of the candidate on matters listed in part 1 of schedule 4A of the Representation of the People Act 1983, which is used for the purposes of the candidate’s election, will be regulated, regardless of when that expenditure is incurred. There is express provision in the Bill (in clause 11(5)) to make clear that the amendments made by that section do not apply to any expenses incurred before the commencement of that section
Therefore the status of an individual and the question of whether they have previously incurred election expenses by triggering the provisions in section 90ZA of the Representation of the People Act 1983 does not determine whether any expenditure counts towards the candidate’s spending limit. The purpose for which the expenditure is used is the decisive factor—any expenditure which falls within the definition in 90ZA will be regulated by the candidate’s spending limit, and subsequent expenditure captured by the definition should be aggregated and reported in line with the statutory requirements.
(2) whether it is his policy that spending by hon. Members on promoting themselves using funds other than the public purse, outside a general election period, should be considered to be promoting or initiating their candidature for the purposes of the new trigger rules on election spending.
Hon. Members of this House would be treated no differently than any other individuals campaigning for election as a candidate under section 90ZA of the Representation of the People Act 1983 as amended by clause 11 (election expenses incurred for a person not yet a candidate) of the Political Parties and Elections Bill.
Amended section 90ZA will provide that all expenditure (whether before or after the calling of a general election) incurred by or on behalf of a candidate on matters listed in part 1 of schedule 4A of the Representation of the People Act 1983, which is used for the purposes of the candidate’s election, will be regulated by the candidate spending limit. Expenditure is therefore regulated if it meets these conditions. The source of the funds is immaterial.