Part 3 Campaign finance

Expenditure in respect of Scottish Parliament elections

21 Notional and third party expenditure: Scottish Parliament elections
(1) The Political Parties, Elections and Referendums Act 2000 is modified as follows.
(2) In section 73 (notional campaign expenditure), in subsection (1A)—
(a) after “paragraph 3,” insert “5,”,
(b) after “parliamentary general elections” insert “, general elections to the Scottish Parliament”.
(3) In section 86 (notional controlled expenditure), in subsection (1A)—
(a) after “paragraph 3,” insert “5,”,
(b) after “parliamentary general elections” insert “, general elections to the Scottish Parliament”.
(4) In section 94 (limits on controlled expenditure by third parties), in subsection (8A)—
(a) after “paragraph 3,” insert “5,”,
(b) after “parliamentary general elections” insert “, general elections to the Scottish Parliament”.

22 Third parties capable of giving notification
(1) The Political Parties, Elections and Referendums Act 2000 is modified as follows.
(2) In section 88 (third parties recognised for the purposes of Part 6), after subsection (10), insert—

“(11) The Scottish Ministers may by regulations amend subsection (2), as it applies for the purposes of a period in relation to which any limit is imposed by paragraph 5 of schedule 10 (general elections to Scottish Parliament), by—
(a) adding a description of third party to the list in that subsection,
(b) removing a description of third party from that list, or
(c) varying the description of a third party in that list.
(12) Regulations under subsection (11) may only be made where the regulations give effect to a recommendation of the Commission.”.

(3) In section 156 (orders and regulations), in subsection (4D)—
(a) after “apply to” insert “any regulations under section 88(11) or”, and
(b) for “such order” substitute “such regulations or orders”.

23 Restriction on which third parties may incur controlled expenditure
(1) The Political Parties, Elections and Referendums Act 2000 is modified as follows.
(2) After section 89A insert—

“89B Restriction on which third parties may incur controlled expenditure: Scottish Parliament elections
(1) No amount of controlled expenditure may be incurred by or on behalf of a third party during a Scottish devolved regulated period unless the third party falls within any paragraph of section 88(2) (third parties eligible to give notification).
(2) Subsection (1) does not apply to any expenses incurred by or on behalf of a third party during a Scottish devolved regulated period which do not in total exceed £700.
(3) Subsections (4) and (5) apply where expenses are incurred by or on behalf of a third party in contravention of subsection (1).
(4) If the third party is not an individual—
(a) any person who authorised the expenses to be incurred by or on behalf of the third party commits an offence if the person knew or ought reasonably to have known that the expenses would be incurred in contravention of subsection (1), and
(b) the third party also commits an offence.
(5) If the third party is an individual, the individual commits an offence if they knew or ought reasonably to have known that the expenses would be incurred in contravention of subsection (1).
(6) In this section a “Scottish devolved regulated period” means a period in relation to which any limit is imposed by paragraph 5 of Schedule 10 (general elections to the Scottish Parliament).”.

(3) In schedule 20 (penalties), at the appropriate place in the table insert—

“Section 89B(4) and (5) (incurring controlled expenditure in contravention of section 89B(1))	On summary conviction in Scotland: statutory maximum
	On indictment in Scotland: fine”.

24 Transitional provision: offences relating to third party expenditure
(1) The amendments made by section 23 have effect only in relation to a Scottish devolved regulated period beginning on or after the day on which section 23 comes fully into force.
(2) In subsection (1) “a Scottish devolved regulated period” means a period in relation to which any limit is imposed by paragraph 5 of schedule 10 of the Political Parties, Elections and Referendums Act 2000 (general elections to the Scottish Parliament).

25 Code of practice on controls relating to third parties
(1) The Political Parties, Elections and Referendums Act 2000 is modified as follows.
(2) After section 100A insert—

“100AA Code of practice on controlled expenditure: Scottish Parliament elections
(1) The Commission must prepare a code of practice about the operation of this Part in relation to a Scottish devolved regulated period.
(2) The code must in particular set out—
(a) guidance on the kinds of expenses which do, or do not, fall within Part 1 of Schedule 8A (qualifying expenses),
(b) guidance on determining whether the condition in section 85(2)(b) (promoting or procuring electoral success) is met in relation to expenditure,
(c) guidance on determining whether anything provided to, or for the use of, a third party falls to be dealt with in accordance with—
(i) section 86 (notional controlled expenditure), or
(ii) section 95 and Schedule 11 (donations),
(d) examples of when expenditure falls to be dealt with in accordance with section 94(6) (expenditure of a third party in pursuance of an arrangement with one or more other third parties).
(3) The Commission may from time to time revise the code.
(4) In exercising their functions under this Part, the Commission must have regard to the code (but only in so far as it relates to a general election to the Scottish Parliament and does not relate to a reserved matter (within the meaning of the Scotland Act 1998)).
(5) It is a defence for a third party charged with an offence under any provision of this Part, where the offence relates to expenditure incurred or treated as incurred by a third party during a Scottish devolved regulated period, to show—
(a) that the code, in the form for the time being issued under section 100BA, was complied with by the third party in determining whether the expenditure is controlled expenditure for the purposes of this Part, and
(b) that the offence would not have been committed on the basis of the controlled expenditure as determined in accordance with the code.
(6) In this section a “Scottish devolved regulated period” means a period in relation to which any limit is imposed by paragraph 5 of schedule 10 (general elections to the Scottish Parliament).
(7) Section 100BA sets out consultation and procedural requirements relating to the code or any revised code.”.

(3) After section 100B, insert—

“100BA Code of Practice on controlled expenditure for Scottish Parliament elections: consultation and procedural requirements
(1) The Commission must consult the following on a draft of a code under section 100AA(1)—
(a) the Scottish Parliament,
(b) such other persons as the Commission consider appropriate.
(2) After the Commission have carried out the consultation required by subsection (1), the Commission must—
(a) make whatever modifications to the draft code the Commission consider necessary in light of responses to the consultation, and
(b) submit the draft to the Scottish Ministers for approval by them.
(3) The Scottish Ministers may approve a draft code either without modifications or with such modifications as the Scottish Ministers may determine.
(4) Once the Scottish Ministers have approved a draft code, they must lay a copy of the draft before the Scottish Parliament, whether—
(a) in its original form, or
(b) in a form which incorporates any modifications determined under subsection (3).
(5) If the draft code incorporates modifications, the Scottish Ministers must at the same time lay before the Scottish Parliament a statement of their reasons for making them.
(6) If, within the 40-day period, the Scottish Parliament resolves not to approve the draft code, the Scottish Ministers must take no further steps in relation to it.
(7) Subsection (6) does not prevent a new draft code from being laid before the Scottish Parliament.
(8) If no resolution of the kind mentioned in subsection (6) is made within the 40-day period—
(a) the Scottish Ministers must issue the code in the form of the draft laid before the Scottish Parliament,
(b) the code comes into force on the date appointed by the Scottish Ministers by order, and
(c) the Commission must arrange for the code to be published in such manner as the Commission consider appropriate.
(9) References in this section (other than in subsection (1)) to a code or draft code include a revised code or draft revised code.
(10) In this section “the 40-day period”, in relation to a draft code, means the period of 40 days beginning with the day on which the draft is laid before the Scottish Parliament, no account being taken of any period during which the Scottish Parliament is dissolved or is in recess for more than four days.”.

(4) In section 156 (orders and regulations), in subsection (4C), after “order” insert “under section 100BA(8) or an order”.
(5) In schedule 8A (controlled expenditure: qualifying expenses), in paragraph 3(11)—
(a) after “paragraph 3,” insert “5,”,
(b) after “parliamentary general elections” insert “, general elections to the Scottish Parliament”,
(c) for “and 100B” substitute “, 100AA, 100B and 100BA”.

Expenditure in respect of local government elections

26 Notional expenditure: local government elections
(1) The Representation of the People Act 1983 is modified as follows.
(2) In section 90C (property, goods, services etc. provided free of charge or at discount), in subsection (1A), the words “Scotland or” are repealed.

S. 21 not in force at Royal Assent, see s. 73(2)
S. 21 in force at 1.8.2025 by S.S.I. 2025/106, reg. 2(1)(b), sch. Pt. 2
S. 22 not in force at Royal Assent, see s. 73(2)
S. 22 in force at 14.4.2025 by S.S.I. 2025/106, reg. 2(1)(a), sch. Pt. 1
S. 23 not in force at Royal Assent, see s. 73(2)
S. 23 in force at 1.8.2025 by S.S.I. 2025/106, reg. 2(1)(b), sch. Pt. 2
S. 24 not in force at Royal Assent, see s. 73(2)
S. 24 in force at 1.8.2025 by S.S.I. 2025/106, reg. 2(1)(b), sch. Pt. 2
S. 25 not in force at Royal Assent, see s. 73(2)
S. 25 in force at 14.4.2025 by S.S.I. 2025/106, reg. 2(1)(a), sch. Pt. 1
S. 26 not in force at Royal Assent, see s. 73(2)
S. 26 in force at 1.8.2025 by S.S.I. 2025/106, reg. 2(1)(b), sch. Pt. 2