MINISTRY OF JUSTICE
News Release (057/08) issued by The Government News Network on 16
June 2008
Reforms aimed at
ending the spending "arms race" in political funding
have been proposed in a White Paper launched today by Justice
Secretary Jack Straw.
The measures would tighten controls on spending by parties and candidates.
Mr Straw plans to bring forward legislation immediately to tackle
these issues and substantially to strengthen the powers of the
Electoral Commission, the watchdog set up in 2000 to oversee party
finance regulations.
The White Paper also sets out the Government's broad support
for long term, fundamental reform of party finance and expenditure
based on the framework put forward by Sir Hayden Phillips'
independent review in 2007.
Sir Hayden's recommendations included limits on donations to
political parties in return for increased state funding. Noting
the need to build public confidence and to move forward only on
the basis of consensus between all political parties, Mr Straw
called on all political parties to come together to consider these
issues and to debate them with the public.
The Justice Secretary said:
"Political parties are integral to our democratic system. So
when political parties are brought into disrepute, the reputation
of the entire political process is tarnished.
"The Government is determined to help build higher standards
of public confidence in our politics and believes that long term,
fundamental reform of party finance is necessary. I hope we can
move towards this with the support of all political parties and
build a deep and enduring cross party consensus.
"We intend to take action where there is a consensus through
legislation to curb the spending 'arms race' which
drives demand for large donations to parties and which so
contributes to public disquiet over our system of party funding.
"The package I am proposing today represents a significant
step forward towards a system of party funding which is more
transparent, better regulated and, most importantly, better able
to win the confidence of the public."
The White Paper - Party finance and expenditure in the United
Kingdom - proposes immediate legislation to:
* bring in more effective controls on candidates' spending
through the re-introduction of the "trigger" on
candidate spending;
* strengthen the Electoral Commission so
that it is better equipped to regulate party spending and
political donations - both giving it greater powers and reforming
its governance so that it can benefit from Commissioners with
recent experience of politics;
* increase the transparency of
donations to ensure that the ultimate source is revealed,
including by closer regulation of unincorporated associations.
Government will also re-examine the system governing which
expenses qualify for each of the legal candidate and campaign
spending limits.
Mr Straw said:
"Strengthening the Electoral Commission will send a clear
signal that politics and politicians are effectively scrutinised:
never above the law.
"The Electoral Commission will have robust civil sanctions
to deploy, with criminal proceedings as an alternative. The
Commission will have more effective investigatory powers, enabling
it to access information from anybody where it suspects a breach
of the rules. Its governance arrangements will be overhauled
better to ensure that there is greater practical experience
available to the Commission."
Sir Hayden's report also proposed new donation caps linked
to an increase in state funding, as well as continuous,
all-encompassing expenditure limits to further curtail the
spending "arms race".
Mr Straw said:
"We share Sir Hayden's objective of securing a more
equitable and democratic system of party funding which is - and is
perceived by the public to be - fair, transparent and free from abuse.
"In the interests of democracy we need finally to achieve
what all parties have sought to do through previous legislation
and stop this damaging arms race.
"On Sir Hayden's recommendation for donation caps in
return for enhanced state funding we would need not only have to
have all the main parties with us, but also the public, the
taxpayer. That is not the case at present. We are ready to have
that debate: indeed, to discuss donation caps at a lower level
than Sir Hayden recommended, but that will require all parties to
come together to have that debate, most crucially with the public."
Notes to editors
1. Party finance and expenditure in the
United Kingdom can be seen at http://www.justice.gov.uk/publications/party-funding.htm.
http://www.justice.gov.uk
ENDS