Representation of the People Bill (Sixth sitting) Debate
Full Debate: Read Full DebatePaul Holmes
Main Page: Paul Holmes (Conservative - Hamble Valley)Department Debates - View all Paul Holmes's debates with the Ministry of Housing, Communities and Local Government
(1 day, 12 hours ago)
Public Bill CommitteesI thank the hon. Gentleman for his question. It is appropriate for electoral registration officers to use their discretion in the circumstances that he describes. They can do that already, and should continue to do so, rather than the Government prescribing the route that they should follow.
Finally, requiring electoral registration officers to respond to ad hoc requests from political parties, alongside their existing statutory write-out duties, would impose a substantial and unnecessary administrative burden. For those reasons, the Government cannot support new clause 40.
Good morning, Dr Allin-Khan, and good morning to members of the Committee. I suspect that by the end of today I am going to have a super tan, given that sun coming through the window. Thank you to Joe for sorting out the blinds.
I rise to speak to new clause 40 in my name and to talk briefly to clause 48. As the Minister has outlined, the new clause would give registered political parties access to data on expired postal votes. As the Minister said, clause 48 would give effect to schedule 3, which makes various changes to absent voter arrangements. If a voter cannot get to the polling station on the day of the election, they can apply for an absent vote. The Minister has outlined in comprehensive detail the minor amendments to the clause that she has brought to the Committee, and we have no problem with those.
The Electoral Commission’s report, however, on the 2024 general election recommended that postal voting
“should be reformed to improve the service for voters and strengthen resilience”
within the system. The Association of Electoral Administrators has called for a longer electoral timetable, including for UK Parliament elections, and for earlier absent voting deadlines, set at 16 working days before polling day. The explanatory notes to the Bill note the intention to move the postal vote application deadline in Great Britain to three days earlier in the electoral timetable, which will be from 11 to 14 working days before the poll. The Elections Act 2022 introduced a series of measures to tighten the security around postal voting, which included providing that postal vote applications expire after three years. That was to stop the scope for postal vote fraud and error.
However, one of the unintended consequences of that change, which we now recognise with concern, is that the Government have not provided for political parties and elected representatives to have access to postal vote expiry data. Political parties already have access to lists of postal voters, and as the 2022 Act provisions start to bite we are seeing a large drop-off in the number of registered postal voters. It is our belief that all parties should be able to recruit postal voters because of that huge drop-off.
I was talking to my hon. Friend the Member for Broxbourne earlier about how, in some areas of my constituency, postal vote drop-off levels are sitting at around 35%. We think that the Government should allow political parties to have access to data in order to play their part in postal vote recruitment if someone has dropped off. The Government have refused to amend the law to allow that, and Labour Ministers have admitted that the Government do not track the number of postal vote renewals or expiries. Amending the law in this way would be a simple step to support democratic engagement and turnout, and provide a level playing field for all parties. There would be no detriment to data protection rights, given that political parties already have access to who has a postal vote.
It is not for me to argue with parliamentary counsel—I would never do so—so I take the steer of officials at the Minister’s Department about the scope of the clause. However, I look for reassurance that the Minister will come back to the Committee about the general principle of allowing political parties access to the drop-off data; we may return to this issue at later stages. All parties, regardless of their infrastructure and machinery across the country, should be able to help the Government by playing their part in increasing the uptake of postal votes if those often vulnerable and elderly people have dropped off.
I have come back to Parliament for a rest after campaigning in the local elections for two weeks, as I suspect most Committee members have. I met many people who did not know that they had dropped off, which is unfortunately an unintended consequence of the legislation that the last Government passed. If the Minister can give a commitment to write to me about how we can amend the Bill to allow parties access, I will be content not to press new clause 40 to a Division. I would like to hear what the Minister has to say.
I thank the hon. Gentleman for his comments; I understand the points he makes. There is a statutory duty for EROs to notify postal voters that their postal vote is due to expire at the end of January that year, and they will be contacting them. The Government’s view is that there needs to be a proportionate approach that does not add a burden in what is already a busy time for EROs. But I will write to the hon. Gentleman to set out current Government thinking in light of his remarks.
I thank the Minister for that reassurance and I look forward to her letter. The Opposition still think that political parties have a role. Because many elected representatives have access to the electoral roll, we get monthly updates; I know that that is different from what happens in an election period, and I understand that the Minister is concerned about proportionality and the burden placed on election officials. However, we believe that political parties have a role and a right to be able to see the drop-off data. However, for the smooth running of the Committee and to make progress, I will not press new clause 40 to a Division.
Question put and agreed to.
Clause 48 accordingly ordered to stand part of the Bill.
Schedule 3
Absent Voting
Amendments made: 14, in schedule 3, page 118, leave out lines 19 to 23.
See the explanatory statement for Amendment 15.
Amendment 15, in schedule 3, page 119, line 7, leave out from “election” to end of line 8.
This amendment and Amendments 14 and 16 remove a redundant regulation-making power and associated provision. The power would have allowed for provision to be made about circumstances in which a proxy’s long-term postal voting arrangement must be preserved when the proxy is granted a postal voting arrangement for a particular poll.
Amendment 16, in schedule 3, page 119, leave out lines 11 to 13.
See the explanatory statement for Amendment 15.
Amendment 17, in schedule 3, page 123, line 37, at end insert—
“20A In section 61 (voting offences other than personation), after subsection (1A) insert—
‘(1B) In subsection (1A), a reference to P being a person who will be registered includes P being a person who has applied to be registered where there is no reason not to register P other than the fact that the objections period has not ended.
(1C) In subsection (1B) “the objections period”, in relation to an application for registration, means the period prescribed under section 10ZC(2) (in relation to Great Britain) or 10A(3) (in relation to Northern Ireland) for making objections to the application before it is determined.’”—(Samantha Dixon.)
This amendment ensures that certain offences in section 61(1A) of the Representation of the People Act 1983 relating to the appointment of proxies apply to the expanded category of people who “will be registered” for the purposes of the absent voting rules.
Schedule 3, as amended, agreed to.
Clause 49
Power to obtain election-related information etc
Question proposed, That the clause stand part of the Bill.
As set out in our manifesto, the Government are committed to encouraging participation in our democracy. To achieve that, it is essential that electors are kept well informed about elections and referenda in their local area and about other pertinent information, such as the candidates running and the locations of polling stations. The clauses will enable us, in conjunction with the Electoral Commission, to improve online information services to provide that information to the public. Although the information is already available to electors, that service will help ensure that electors have access to consistent and complete information via a central service. The information that election officers may be required to provide will be limited to factual information about the poll and will not include details on the policies of candidates or political parties.
Clause 49 will create a new power for the Secretary of State to require returning officers, counting officers, petition officers and electoral registration officers to share specified information relating to elections and referenda. The Secretary of State can require the information to be shared with the Department, the Electoral Commission or both.
Clauses 50 and 51 specify which officers can be required to provide information, and for which types of elections and referenda. That power will be exercised via secondary legislation, so the exact details of the information required and processes for sharing it will be confirmed in due course. At this stage, our ambition is that the information will be collated by the Electoral Commission and shared with the public via its website. Electoral administrators will be supported to provide the required information and for electors to provide their location to quickly find the most relevant information. This is a straightforward and proportionate measure that we believe will greatly improve the electorate’s access to information and support increased engagement.
I thank the Minister for that explanation. Around the country, many enthusiasts for democracy, such as myself, will be shaking with excitement about being able to find all the information in one place. Frankly, I cannot understand why we have not moved to such a system before, and I am happy to credit the Minister for her foresight in bringing forward such a forward-thinking proposal.
Even in the last week, candidates were desperately trying to find out who had been nominated in their counties or boroughs at various stages. The information was supposed to be published at 4 o’clock on the Thursday or Friday, but Hampshire county council had not published the information in time. Such things are important for people participating.
What is particularly welcome in these clauses is the fact that people who have various disabilities will be able to access the support available. Many constituents knocking on doors in the last few weeks have raised questions about the support that they might want. Having a single place where somebody can just stick in their postcode, or where they live, and have access to information about the local or national election that they are entitled to participate in is a very good thing. We will not contest the clauses. We think they are a very good move for elections.
Harassment and intimidation of voters, electoral staff and campaigners, both online and in person, is totally unacceptable and has a profoundly detrimental impact on our democratic process. We want as many people as possible to engage in our democracy, but sadly there are some who seek to deter involvement through abuse and intimidation.
Candidates already have the option to keep their home address from being published on the statement of persons nominated and on ballot papers, but a requirement remains for candidates who act as their own election agent to have their home address published on the notice of election agents. We are removing this requirement, enabling candidates in this position to provide a correspondence address to be published instead of their home address. We are also extending that option to all election agents. These changes will ensure that those who take part in our democracy can feel safe and secure in their home. I commend the clause to the Committee.
We welcome clause 54, which, as the Minister outlined, will allow candidates acting as their own agent to remove their home address from publication requirements. I reiterate what the Minister said: intimidation and harassment during any kind of political campaign is unacceptable. We had a very good cross-party debate on harassment in the last sitting of the Committee.
These measures seem very sensible, but I would like the Minister to address something that has just come to me, so is almost guaranteed to be nonsense. When a correspondence address has been given, if impropriety has been found to have occurred in the return of election expenses by either an agent or a candidate, might there be unintended consequences in terms of the paper trail and how that person can be found? For example—the Minister will be aware that this is slightly out there—if a dummy corporation sets up a correspondence address through a PO box, how can we ensure that the agent is held to account through an investigation? The Minister can write to me on that. It just came to me, so I am not expecting an answer now. Other than that, I think the clause is perfectly sensible, and we will not contest it.
The hon. Gentleman makes an important point. Election agents could use a PO box as a correspondence address, but not as their office address. I hope that gives him the reassurance that any agent behaving inappropriately would be findable.
Question put and agreed to.
Clause 54 accordingly ordered to stand part of the Bill.
Clause 55
Leave to pay late and disputed expenses claims
Question proposed, That the clause stand part of the Bill.
We think these clauses are sensible, but I have a number of questions for the Minister on their implementation. First, has she had any feedback from the Electoral Commission regarding these added responsibilities? Does she think they are within its current operational capacity? Has the commission given her Department any feedback on whether it is happy to undertake the new requirements that the Government are placing on it, and that it is resourced properly to implement and enforce them, particularly those in clause 56?
Clause 56 places a duty on candidates to send a copy of their returns to the Electoral Commission as well as the local returning officer. I am sure the Minister is aware that there are political parties and independent candidates of all shapes, sizes, abilities and internal machinery. There are associations of all political parties across the country that are run by a couple—at best—of well-intentioned volunteers, who might not necessarily be at the forefront of new electoral law changes. Has the Minister taken that into account? How will she communicate these regulations effectively so that we do not have the unintended consequence of some well-intentioned candidates and agents falling foul of them, just because of the postcode they seek to represent?
The Opposition have a wider concern about changes like this one, especially in the light of the answer given to a written question put by my hon. Friend the Member for Ruislip, Northwood and Pinner. The Government have proceeded with these legislative changes without consulting the Parliamentary Parties Panel. Given that clauses like this one will have a direct influence on and consequences for political parties of all shapes and sizes, it is regrettable that the panel has not been consulted at all on the Bill whatsoever.
I urge the Minister and the Government to take a step back in progress with the Bill’s passage and reset their view on consulting the Parliamentary Parties Panel when they are seeking to make changes of this nature. In that way, political parties represented on the Committee can actually be consulted and give the Government their views. It is regrettable that they have not done so. The Minister has rightly brought the clause forward, but she has absolutely no information about the views on these changes of parties—not just the Conservative party but smaller parties and independent candidates—
I hope the Minister takes that as a genuine nudge. It is a complaint from the official Opposition that these changes, and the Bill in general, have changed precedent. When the last Government introduced the Bill that became Elections Act 2022, the panel was consulted because that legislation affected all political parties on an equal basis. This Government have chosen not to do that. That is regrettable. I look to the Minister to change the course of this Government when it comes to future changes to electoral legislation.
Lisa Smart (Hazel Grove) (LD)
It is a pleasure to serve with you in the Chair, Dr Allin-Khan. This discussion about part 4 feels slightly odd because we are having part of the conversation but will have a further conversation on Report, for all the good and understandable reasons that we have talked about, after the publication of the review by Sir Philip Rycroft. Many people truly welcome Sir Philip’s work and some of us were fortunate enough to take part in it, but we are discussing the measures under consideration while fully aware that we expect further movement from the Government.
I will speak to the new clauses tabled in the name of the Chair of the Joint Committee on National Security Strategy, the hon. Member for Warwick and Leamington (Matt Western). We Liberal Democrats welcome clauses 56 and 57, but the JCNSS did a huge amount of work looking at money and interference in our politics, and it has made some recommendations, which are manifested in the new clauses. The JCNSS welcomed the Government’s commitment to commence section 54A of the Political Parties, Elections and Referendums Act 2000. That section was inserted in 2009 but never commenced. It covers requirements for donors to make a declaration about their donation, but the Committee found that the provisions need more work to adequately address concerns about donors acting as conduits for foreign money. New clause 47 would require the Government to commence section 54A of the 2000 Act within three months of the Bill being passed. The subsequent linked new clauses change the provisions of section 54A to address its shortcomings.
Regarding new clause 48, the JCNSS heard evidence that law enforcement often faces prohibitively high thresholds for taking action on suspicions of wrongdoing, and that part of the problem is linked to the wording of the legislation, which requires law enforcement to prove that actors “knowingly” broke the rules. New clause 48 would lower the threshold and use wording in line with that of anti-money laundering regulations, whereby persons are liable if they have reasonable grounds to suspect that they are facilitating impermissible donations.
Regarding new clause 49, the JCNSS questioned why it would be appropriate to have such a high threshold—£11,180—for making a declaration. It perceived a gap that could be exploited. For example, a UK donor might receive £11,179 from a Russian source in connection with a planned donation but would, apparently, not need to declare that when making a £11,179 donation. The JCNSS noted the general principle that donations below £500 are largely outside the reporting scope of PPERA and would not need to be reported or recorded. A £500 threshold might therefore prove a more robust basis to guide the level at which money received in connection with a donation needs to be declared. The new clause would require any donation above £500 to be accompanied by a declaration on its source, and whether related gifts have been received. Transparency and consistency are both good things, of which there should be more.
I wonder if I could urge the hon. Member to change her view. Does she not think that the £500 threshold is very low, if we consider the fast period when a candidate may be fundraising, during the longer term of an election period? Many of our constituents will give money during that period. At £500, the burden placed on candidates and on the person giving the money would be probably too harsh. The threshold needs to be lifted to something more realistic.
Lisa Smart
I welcome the shadow Minister’s intervention, and I think that we should talk far more than we do about domestic money in politics, as well as foreign money in politics. Power is concentrated in far too few hands. The price of elections is going up and up, and that is not good for democracy. I would welcome that discussion.
New clause 49 is in the name of the Chair of the JCNSS, so I am speaking to it on his behalf. We are talking about £500 during the course of a calendar year, so £50 a month breaches the threshold. I think there is a conversation to be had. As I say, this new clause is not in my name.
On new clause 50, the Committee heard evidence that the current 12-month prison sentence was not an adequate deterrent. Also, the low sentences reportedly limit the type of investigatory tools that law enforcement may use in an investigation. I am content to speak to the new clauses on behalf of the Member who tabled them, the hon. Member for Warwick and Leamington.
A number of points have been made, which I thank hon. Members for. I can reassure the shadow Minister, the hon. Member for Hamble Valley, that we have worked closely with the Electoral Commission on these proposals. All my officials talk to the Electoral Commission constantly, so its capacity to take this on board is understood.
In terms of consultation, we always work with the parliamentary parties panel. However, as I was coming into this position, I reached out to all the leaders of the opposition parties and invited them to come to talk to me about the Bill prior to its Second Reading. Not all took up the offer; however, I was pleased to meet those who did.
Turning to the point about the two sets of returns, it is still important to address the point raised by the shadow Minister and the hon. Member for North Herefordshire. It is important for returning officers to receive returns and declarations, because having those available for inspection at the local level remains an important part of our democracy. I would not want to see that taken away. That is why we are proposing both the EC and returning officers receive them.
On new clause 47, the Government fully recognise the importance of greater transparency over the source of political donations, and we are already taking that forward. Work to activate donor source declarations is underway as part of our wider political finance reforms, and the Government have been clear that those measures will be delivered in this Parliament. The new clause would not change our direction or add new policy substance. I understand that the hon. Member for Hazel Grove is eager to see this implemented quickly, and I want to reassure the Committee that this is a Government priority. However, imposing a fixed deadline risks cutting across the careful sequencing needed to implement reforms coherently.
We need to align commencement with the broader package, ensuring that guidance and systems are ready, and give campaigners proportionate lead-in time. That speaks to the point made by the shadow Minister that this is about not just the established parties but smaller parties as well. A rigid statutory date risks poorer implementation without adding any new substance to what the Government are already delivering. Our approach is to activate donor source declarations in step with the wider package in the Bill, so that parties can have clear and workable rules and the Electoral Commission is operationally prepared. On that basis, I hope the hon. Member will feel able not to push the new clause to a vote.
New clause 48 seeks to lower the criminal threshold for two political finance offences so that a party treasurer or a responsible person would commit an offence when it could be proven that they had
“reasonable grounds for knowing or suspecting”
that a declaration accompanying a campaign or referendum expenditure return was false. Currently, prosecutions for such offences are possible only when it can be proven that the offender “knowingly or recklessly” makes a false declaration. That threshold was designed to reflect the seriousness of criminal liability and ensure that sanctions target deliberate and clearly irresponsible wrongdoing.
The Government welcome Philip Rycroft’s comprehensive and well-reasoned report on foreign financial interference in our democracy, which includes relevant recommendations in this space. Any proposal to amend the knowledge test for relevant offences will need to be considered with great care to ensure that party treasurers and responsible persons are not unduly exposed to potential criminal sanctions for administrative errors or inadvertent admissions. It is also important to consider the political finance regime in the round to avoid amendments creating inconsistencies between parts of the statutory framework.
The Rycroft review provides a valuable basis for broader consideration and the Government are actively working through its recommendations to ensure that political finance rules and their enforcement remain proportionate, coherent and fit for purpose. For those reasons, although we do not support new clause 48, we will continue to assess the review’s findings carefully and will set out a full Government response, including whether making further amendments to the Bill would be appropriate. Given that reassurance, I hope the new clause will not be pressed.
The integrity of political finance depends on measures that are both effective and proportionate. That is why the Bill introduces stronger due diligence expectations and tougher rules for institutional donors. Our general approach has been to address weaker points of the framework where there is greater risk. While the intention behind the new clause is acknowledged, reducing the declaration threshold to £500 does not follow that risk-based approach and could end up weakening the system.
In that respect, I share the views of the shadow Minister because I believe the new clause would create a large volume of low-value declarations and, in doing so, divert the time and energy of donors, recipients and the regulator on to lower-risk activity. We want resources to be focused on higher-risk activity, such as the enhanced due diligence that we want donors to undertake when they receive larger donations. The Government believe that the risk-based approach that we are taking in the Bill is the right one. It ensures that further scrutiny will be applied where it matters most.
New clause 50 seeks to increase the maximum criminal penalties that can be imposed for various false declaration offences under the political finance framework. In the Bill, the Government are acting on long-standing recommendations to strengthen the Electoral Commission’s power and extend its remit to ensure that enforcement provides a clear deterrent against breaking the law, while remaining proportionate. However, we recognise that we cannot be complacent, so we welcome the Joint Committee on National Security Strategy’s recent report and Philip Rycroft’s independent review on foreign financial interference in our democracy. They both include relevant recommendations regarding the enforcement of political finance offences.
Any proposal to increase sentencing for such offences will need to be considered carefully to ensure that criminal penalties remain proportionate. It will also be important to consider the political finance regime and its enforcement in the round to prevent amendments from creating inconsistencies between parts of the statutory framework. The Rycroft review provides a valuable basis for that broader consideration and the Government are actively working through its recommendations to ensure that political finance rules and their enforcement remain proportionate, coherent and fit for purpose.
Noting that new clause 50 covers ground similar to one of Mr Rycroft’s recommendations, we will assess the review’s findings carefully and set out a full Government response, including whether to make further amendments to the Bill in the light of that work.
Does the Minister see the absurdity of the Government’s strategy in this area of policy? The Government commissioned a huge review—a good review—by Philip Rycroft that they need to examine and consider properly. But we are discussing a section of the Bill where although a direct influence on future legislation is outlined by Philip Rycroft, the Minister is resisting amendments from other political parties, saying she will bring in amendments later because the Government have not considered Rycroft’s review properly. She is not going to accept this, but does she not see that the way the Bill is working is absurd? We are going to have retrospective amendments when it comes to the review, but the Minister will only accept amendments from her own side and not from other political parties.
The shadow Minister is, of course, fully entitled to his views. However, the new clauses relate to a very narrow framework in the Bill. The Government are considering the review and its recommendations from a much broader, cross-Government perspective. That requires much broader work. We will bring our response to the review to Parliament in time for proper scrutiny.
Question put and agreed to.
Clause 56 accordingly ordered to stand part of the Bill.
Schedule 7 agreed to.
Clause 57 ordered to stand part of the Bill.
Clause 58
Risk assessments for donations to registered parties etc
I rise to speak to clause 58 and to Opposition amendments 32 and 31, which would require the risk assessment to take into account whether a donor is required to register under the foreign activities and foreign influence registration scheme.
As the Minister outlined, clause 58 would make changes to PPERA to require registered political parties to undertake risk assessments on reportable donations—those more than £11,180. Multiple donations from the same donor within a calendar year would be aggregated for the purposes of the threshold. Similarly, schedule 8 would require third-party campaigners and others already regulated under PPERA to undertake “know your donor” risk assessments. We welcome the Minister’s approach to tightening the regulations around political donations. As the hon. Member for Hazel Grove said, we need to talk much more about this issue, including domestic donations. We think that the clause has some really strong attributes to increase transparency and equalise the donation procedure.
I take issue with the Minister’s interpretation of the consequences of amendments 31 and 32, although she recognised that they are well intentioned. I fail to see how they narrow the scope of the risk assessment, when they would actually broaden it. It seems alien that the Government are not willing to broaden the scope of those risk assessments with a system that has been in place since 1 July 2025. If we reject these two amendments, do we not risk creating two frameworks? We would be wilfully leaving out an existing framework when trying to do risk assessments. It would strengthen the risk assessment if we brought into play an existing framework that already undertakes regulation.
Our amendments would broaden the scope of the risk assessment rather than narrow it. When somebody is making a donation to influence the role of Members of Parliament, and they are voluntarily registering themselves under the foreign influence scheme, it is important that that is included in our donations regime. It does not stop the well-intentioned aims of the clause from operating, because this already exists. I fail to understand the Minister’s resistance to the two amendments.
We are discussing very important attributes of the Bill and very important subject matters: donations to political parties. We have all had our bad ones. We have all had our good ones, which enable democracy to take place. We have had a comprehensive and welcome review from Philip Rycroft. The Minister has outlined that the Government will undertake a solid consultation response to that review, but we are pushing ahead with clauses that will, let us face it, be passed in this Committee and then in the House at later stages of the Bill. The Minister will bring forward amendments that will be debated, but there has not been a consultation.
We have always contested that the measures in the Bill could be paused until there is a proper cross-party review of the Rycroft review. If we could come to some agreement on a cross-party basis, the later passages of the legislation could be fast-tracked. It is regrettable that the Minister and the Government—although I do not blame the Minister personally—are coming to this House with important and forward-looking legislation without taking into account a proper review to directly influence the proposals they have introduced. I do not think a general election is imminent—unless the Minister suddenly gives us cause for concern—so a pause would not be detrimental to the passage of the Bill. It could give scope for cross-party agreement on the proposed reforms and speed up the passage of the Bill.
The Bill is a significant piece of legislation, but it has been introduced only at the tail end of the parliamentary Session. I am aware that there is a carry-over motion, and the Conservatives fully support that through the usual channels, so why rush the clauses when we have not had the proper implementation and review of the Rycroft review? It would make far more sense to introduce a consolidated Bill in the next Session after cross-party consultation so that we can have a proper discussion, rather than fast-tracking the Government’s tabled amendments.
I am sure that the Minister will respond to that in her usual courteous way, but I would be grateful if she could outline why she seems to think that amendments 31 and 32 would somehow hinder the operational regulatory implementation of her proposals. They would actually broaden the scope, and, we would argue, back up its implementation through already existing legislation. We regret the attitude that the Government have taken to the importance of the Rycroft review and the consultations with all political parties through the Parliamentary Parties Panel. I remind her that a written question has outlined that there was no consultation on a cross-party basis before the Bill was introduced to the House. We will be push amendments 31 and 32 to a vote.
Lisa Smart
We Liberal Democrats support greater scrutiny of the sources of political money. We will not oppose any of these amendments, whether from the Government or His Majesty’s Opposition, but we want to raise some issues because we believe that they could have gone further.
The amendments were tabled, as has been mentioned, following the publication of the Rycroft review, but revisions around cryptocurrency donations are not included in them. In a welcome statement to the House, the Secretary of State talked specifically about banning crypto donations, but there is no mention of that in the Bill. The Government accepted Sir Philip’s recommendation on the day that it was published, so why is there nothing about that in this group of amendments? The Government have a ready vehicle for it in front of them, so the Committee would welcome an explanation of why that is. Can the Minister set out a planned timetable of future actions, including a firm commitment on when a cryptocurrency amendment will appear?
The shadow Minister talked fairly about how this process is running in parallel, making it quite difficult to understand what is ahead of us. The Government are working on a response to the Rycroft review in full, and there are measures in the Bill that they will be keen to ensure are implemented in time for the next general election, including votes at 16 and automatic voter registration. Those will take time to implement, so I understand that the Minister is playing a reasonably sticky wicket, trying to go at pace but in a thorough and considered manner. She has not been dealt an easy hand, but I would appreciate hearing about her planned timetable for issuing further amendments.
I am sure that the Minister agrees about the scale and immediacy of the threat that some of the amendments seek to address, including foreign interference in our elections and democracy. Urgency on those actions is needed. It is important to get these measures in place as soon as possible, but they really should be the right measures. I would welcome hearing from the Minister about when she plans to bring forward further information, and I am sure that we all look forward to scrutinising that in due course.
Lloyd Hatton
Before I speak to clause 58, let me say in response to the hon. Members for Hamble Valley and for Hazel Grove that this game-changing legislation and the Rycroft review have both come in the first Session of a new Government. There is a clear understanding—the Minister has made it known here and in the Chamber—that the threats that we face, whether through foreign interference or foreign money trying to influence our democratic process, are severe, and we have made a robust response to them, through this legislation and by commissioning the Rycroft review last year.
I want to make two points on clause 58. First, a key part of the changes introduced by the Bill is the “know your donor” principle, which will require political parties to take more responsibility for exactly who is funding them. Existing rules do not specifically require recipients to consider the risk that a donor is potentially facilitating an illegal donation. I welcome the fact that that will change as a result of this clause, which will bring about a complete overhaul of the system and I believe will improve the integrity of our democracy, help strengthen national security and help restore trust in political parties across the country.
The hon. Gentleman is absolutely right that the clause is important. We do need to have a greater say. He says he supports the clause, and I agree with him, because he is very sensible. But given some of the headlines we have had across the House in recent weeks about the origins of donations and the facilitation of bad donations, why does he not agree with us that foreign influence registration should be part of the risk assessment? Does he share my concern that the Government have rejected that?
Lloyd Hatton
I do not believe that the Government are rejecting that carte blanche. As I was about to say—it is almost as if the hon. Gentleman has my notes before him—the Rycroft review commissioned by this Government notes that the “know your donor” provisions are similar to the anti-money laundering checks that are required by thousands of organisations, large and small, in the private sector, the third sector and elsewhere. Those are about ensuring that financial transactions, such as a donation, are indeed legitimate. As we digest the Rycroft review, I hope and expect that the Minister will give careful consideration to what it sets out and look at the idea that “know your donor” checks should more closely mirror the due diligence checks we see elsewhere, particularly in relation to anti-money laundering regulations.
In making my second point, which I think is worthy of further consideration, I think it will be helpful to provide a case study. As Members on both sides of the Committee will recall, earlier this year the hon. Member for Great Yarmouth (Rupert Lowe), a former Reform UK MP—I notified him that I would be mentioning him—launched a new political party, Restore Britain. Before that, however, he set up a “political movement”, and he may or may not—we do not know—have received substantial contributions from impermissible sources before Restore Britain was registered officially as a political party. The fact is that we simply do not have a clear understanding, and the current legal landscape means that there are no checks on the funds that a party may hold prior to formal registration.
I should make it very clear that the Bill goes far in strengthening controls on the sources of donations to political parties, and goes a great way to shoring up our democracy against foreign interference. However, I would really welcome the Minister’s thoughts and ideas on how we can ensure that a political party does not seek to sidestep controls on donations and loans by accepting substantial contributions from a potentially impermissible source simply because it has not yet set itself up officially as a political party.
I know that this is something that Rycroft seeks to understand at a top level in his review, so I do not expect it to be dealt with in Committee—I think that would be wrong, because we had the review only just before the Easter recess—but I would welcome the Minister’s thoughts, as the Bill proceeds, on how we close down the potential problem whereby political movements, political projects or whatever we want to call them seek to gain donations outside the controls and checks that would apply if they were a registered political party.