Section 26: Meaning of “controlled expenditure”
62.Section 26 amends the definition of what is regarded as controlled expenditure for third parties in section 85 of PPERA to take account of the extension in the range of activities which count as controlled expenditure set out in new Schedule 8A.
63.Subsection (2) amends the definition of controlled expenditure to include expenses incurred by or on behalf of a third party which fall within Part 1 of new Schedule 8A to PPERA (see below) and which can reasonably be regarded as intended to promote or procure the electoral success of a party or candidates. The second part of this test largely replicates the current PPERA test. However, expenditure which would reasonably be regarded as “otherwise enhancing the standing” of parties or candidates is no longer included within the definition of controlled expenditure. This is a small change, but ensures that the activity must have a connection with “electoral success” at a relevant election. The new section 85(4)(c) and (4A) of PPERA (inserted by subsections (4)(c) and (5)) contain provision similar to provision formerly in section 85(3) and (4); the restructuring is in consequence of the changes to section 85(2).
64.Subsection (9) introduces a defence, for a person or third party charged with an offence of incurring controlled expenditure in excess of a spending limit (i.e. above the limit in a part of the UK or the constituency limit) to show that they complied with the relevant code of practice. The defence will also be available in relation to a charge of exceeding a spending threshold.
65.Subsection (12) is a consequential change as “election material” is no longer defined in section 85 of PPERA. Subsection 12 inserts new section 143A into PPERA. This provides the test for whether material is “election material” for the purposes of section 143 of PPERA. This section relates to the details that have to appear on third party controlled or political party campaign material (often referred to as “imprints”). The test in new section 143A mirrors the test for controlled expenditure in section 85 of PPERA.
