Overview

This bill aims to reform the funding and expenditure of political parties in the UK. Key changes include a phased reduction in the maximum donation amount from a single source, new rules on affiliation fees from membership organizations, and the introduction of a system of public funding for political parties.

Description

Funding Restrictions

The bill introduces a gradually decreasing cap on the total value of donations and loans a single person or entity can give to a represented registered party. This cap starts at £50,000 in 2017 and decreases to £10,000 in 2026. Affiliation fees from trade unions and other membership organizations will be counted as individual donations under specific circumstances, requiring member consent and meeting certain conditions.

Public Funding

The bill establishes two main public funding schemes. An "amount-per-vote" scheme provides funding based on votes received in recent elections. A "matched funding" scheme matches donations from registered supporters, up to £5 per supporter. Gift aid rules will also apply to donations to eligible parties.

Expenditure Controls

The bill sets annual limits on non-election expenses incurred by represented registered parties and amends existing rules on campaign expenditure. It also modifies the rules regarding the free delivery of candidates' election addresses.

Electoral Commission

The Electoral Commission is given expanded powers to enforce the provisions of the bill, including overseeing the new funding schemes and ensuring compliance with spending limits.

Government Spending

The bill will lead to increased government spending to fund the new public financing schemes for political parties. Exact figures will depend on the number of votes received and donations made under the new system, making precise predictions difficult.

Groups Affected

• Political Parties: Will be affected by the new funding caps, public funding schemes, and expenditure limits. Larger parties may initially benefit more from public funding.
• Trade Unions and Membership Organizations: Their affiliation fees may be treated as individual donations, impacting their ability to fund political parties.
• Donors: The maximum amount they can donate to political parties will be significantly reduced.
• Candidates: Will be affected by changes to the rules around election addresses and nomination requirements.
• Electoral Commission: Will have increased responsibilities in regulating and enforcing the provisions of the bill.
• The Public: Potentially will have greater transparency and accountability in the financing of political parties, but also may contribute through taxation to the public funding schemes.

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