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 amount that a single person can donate to a party, new rules on affiliation fees from trade unions and other organizations, and the introduction of public funding schemes for political parties.

Description

Funding Regulations:

The bill introduces a gradually decreasing cap on total donations and loans from any single source to represented registered parties (parties with at least two elected members in the UK Parliament or a devolved legislature). This cap will decrease from £50,000 in 2018 to £10,000 in 2027. Affiliation fees from trade unions and membership organizations will be treated as individual donations under specific circumstances, requiring member consent.

Public Funding:

The bill establishes two public funding schemes: an "amount-per-vote" scheme, distributing funds based on votes received in recent elections, and a "matched funding" scheme for registered party supporters who make donations.

Expenditure Regulations:

Annual limits on non-election expenses for represented registered parties are introduced. The bill also increases candidate spending limits at general elections and removes some restrictions on pre-candidacy election expenses.

Election Addresses:

The bill modifies the rules regarding election addresses, introducing a system where candidates' addresses are compiled into a booklet and sent to voters by the returning officer. This replaces the previous system of free postal delivery of individual addresses.

Electoral Commission:

The bill grants the Electoral Commission additional powers to oversee and enforce the new regulations on funding and expenditure.

Government Spending

The bill will lead to increased government spending on public funding of political parties through the amount-per-vote and matched funding schemes. Precise figures are not specified in the bill but will depend on the number of votes cast and registered supporters for each party.

Groups Affected

• Political Parties: The bill will significantly impact party funding and campaign spending, potentially altering their fundraising strategies and financial stability. Represented registered parties will be most affected.
• Trade Unions and Membership Organisations: New rules on affiliation fees may limit their ability to contribute to political parties, requiring individual member consent.
• Donors: The donation cap limits the amount individuals can donate to political parties.
• Candidates: Changes to election spending limits and the delivery of election addresses will impact their campaigns.
• Electoral Commission: Increased responsibilities in overseeing the implementation and enforcement of the bill's provisions.
• Voters: May experience changes to how they receive election information (through the new election address booklet).

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