Part VI Controls relating to third party national election campaigns
Chapter II Financial controls
Financial limits F6on controlled expenditure
I194 Limits on controlled expenditure by third parties.
1
Schedule 10 has effect for imposing limits on controlled expenditure incurred by or on behalf of recognised third parties in England, Scotland, Wales or Northern Ireland F18, or in particular parliamentary constituencies, during the periods specified in that Schedule.
2
Where during a regulated period any controlled expenditure is incurred in a relevant part of the United Kingdom F12or a parliamentary constituency by or on behalf of a recognised third party in excess of the limit imposed by Schedule 10 in relation to that period and part of the United Kingdom F23or parliamentary constituency, then—
a
if the third party is not an individual—
i
the responsible person is guilty of an offence if he authorised the expenditure to be incurred by or on behalf of the third party and he knew or ought reasonably to have known that the expenditure would be incurred in excess of that limit, and
ii
the third party is also guilty of an offence;
b
if the third party is an individual, he is guilty of an offence if he knew or ought reasonably to have known that the expenditure would be incurred in excess of that limit.
3
Subsection (4) applies where—
F13a
F36any of the following sub-paragraphs applies—
ai
during a regulated period in relation to which any limit is imposed by paragraph 3, 7, 9, 10 or 11 of Schedule 10 (periods involving parliamentary general elections or general elections to the Northern Ireland Assembly), any controlled expenditure is incurred by or on behalf of a third party in excess of £10,000;
i
during a regulated period, any controlled expenditure is incurred in a part of the United Kingdom by or on behalf of a third party in excess of the limit for that part of the United Kingdom mentioned in subsection (5) F30;
ii
during a regulated period in relation to which any limit is imposed by paragraph 3, 9, 10 or 11 of Schedule 10 (periods involving parliamentary general elections), any controlled expenditure is incurred in a particular parliamentary constituency by or on behalf of a third party in excess of the limit mentioned in subsection (5ZA), and
F33b
the third party—
i
in a case within paragraph (a)(ai) or (ii), is not a recognised third party;
ii
in a case within paragraph (a)(i), is not a recognised third party or, where the regulated period is one in relation to which any limit is imposed by paragraph 3, 7, 9, 10 or 11 of Schedule 10, is a recognised third party but is subject to the lower-tier expenditure limits.
F73A
For provision requiring certain controlled expenditure to be disregarded in determining for the purposes of subsection (3)(a) whether a limit is exceeded, see section 94B(3) (arrangements between third parties notified to the Commission).
4
In F37the case mentioned in subsection (3)—
a
if the third party is not an individual—
i
any person who authorised the expenditure to be incurred by or on behalf of the third party is guilty of an offence if he knew or ought reasonably to have known that the expenditure would be incurred in excess of that limit, and
ii
the third party is also guilty of an offence;
b
if the third party is an individual, he is guilty of an offence if he knew or ought reasonably to have known that the expenditure would be incurred in excess of that limit.
F284ZA
In its application to a case within subsection (3)(a)(i) where the third party is a recognised third party that is subject to the lower-tier expenditure limits, the reference in subsection (4)(a)(i) to any person who authorised the expenditure to be incurred is to be read as a reference to the responsible person.
F114A
It is a defence for any person or third party charged with an offence under subsection (2) or (4) to show—
a
that any code of practice for the time being issued under paragraph 3 of Schedule 8A was complied with in determining whether any 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.
5
The limits referred to in subsection F31(3)(a)(i) are as follows—
a
F35£20,000 for England; and
b
F14£10,000 for each of Scotland, Wales and Northern Ireland.
F325ZA
The limit referred to in subsection (3)(a)(ii) is 0.05% of the total of the maximum campaign expenditure limits in England, Scotland, Wales and Northern Ireland.
F95A
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
6
Where—
a
during a regulated period any controlled expenditure is incurred in a particular part of the United Kingdom F10or a particular parliamentary constituency by or on behalf of a third party, and
b
the expenditure is so incurred in pursuance of a plan or other arrangement whereby controlled expenditure is to be incurred by or on behalf of—
i
that third party, and
ii
one or more other third parties,
the expenditure mentioned in paragraph (a) shall be treated for the purposes of this section F22, sections 94D to 94H and Schedule 10 as having also been incurred, during the period and in the part of the United Kingdom F5or parliamentary constituency concerned, by or on behalf of the other third party (or, as the case may be, each of the other third parties) mentioned in paragraph (b)(ii).
7
Subsection (6) applies whether or not any of the third parties in question is a recognised third party.
8
Where—
a
at any time before the beginning of any regulated period any expenses within section 85(2) are incurred by or on behalf of a third party in respect of any property, services or facilities, but
b
the property, services or facilities is or are made use of by or on behalf of the third party during the regulated period in circumstances such that, had any expenses been incurred in respect of that use during that period, they would by virtue of section 85(2) have constituted controlled expenditure incurred by or on behalf of the third party during that period,
F248A
Where the period is one in relation to which any limit is imposed by paragraph 3, 7, 9, 10 or 11 of Schedule 10 (periods involving parliamentary general elections or general elections to the Northern Ireland Assembly), property, services or facilities are made use of on behalf of a third party for the purposes of subsection (8)(b) only if their use on behalf of the third party is directed, authorised or encouraged by the third party or (where the third party is a recognised third party and is not an individual) by the third party or the responsible person.
9
For the purposes of subsection (8) the appropriate proportion of the expenses mentioned in paragraph (a) of that subsection is such proportion of those expenses as is reasonably attributable to the use made of the property, services or facilities as mentioned in paragraph (b).
10
For the purposes of this section F29, sections 94A and 94BF27, sections 94D to 94H, sections 96 to F399A and Schedule 10—
a
a “regulated period” is F38... a period in relation to which any limit is imposed by Schedule 10;
b
any reference to controlled expenditure incurred by or on behalf of a recognised third party during a regulated period includes any controlled expenditure so incurred during that period at any time before the third party became a recognised third party;
c
a part of the United Kingdom is a “relevant part” if any limit imposed by Schedule 10 applies to controlled expenditure which is incurred in that part; F25...
d
any reference to controlled expenditure being incurred in a part of the United Kingdom shall be construed in accordance with paragraph 2 of that Schedule.
F20e
the “maximum campaign expenditure limit” in a part of the United Kingdom is the limit imposed by paragraph 3 of Schedule 9 in relation to campaign expenditure incurred in the relevant period (within the meaning of that paragraph) by or on behalf of a registered party which contests all the constituencies in that part (and to which sub-paragraph (6) of that paragraph does not apply).
F19f
any reference to controlled expenditure being incurred in a parliamentary constituency shall be construed in accordance with paragraph 2A of Schedule 10.
F1710A
Where an offence under subsection (4) is committed in the case of a recognised third party that is subject to the lower-tier expenditure limits—
a
the third party ceases to be subject to those limits at the time the offence is committed, and
b
this Part then applies to the third party as if the notification under section 88(1) which is for the time being in force in relation to the third party did not contain a statement under section 88(3D).
F1611
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
94AF4Arrangements between third parties notified to the Commission
1
A recognised third party may, at any time before the end of a regulated period, send a notice to the Commission—
a
stating that it is party to an arrangement of the kind mentioned in section 94(6),
b
undertaking to be a lead campaigner in relation to the arrangement, and
c
identifying one or more other third parties that are parties to the arrangement and have undertaken to be minor campaigners in relation to it.
2
A recognised third party that has sent a notice under subsection (1) may, at any time before the end of the regulated period, send one or more supplementary notices to the Commission identifying additional third parties that are parties to the arrangement and have undertaken to be minor campaigners in relation to it.
3
As from the date of receipt by the Commission of—
a
a notice under subsection (1), the recognised third party that sent the notice becomes “a lead campaigner” in relation to the arrangement;
b
a notice under subsection (1) or (2), a third party identified in the notice becomes “a minor campaigner” in relation to the arrangement.
4
A notice under subsection (1) or (2) may not—
a
identify as a minor campaigner a third party that is a lead campaigner in relation to the same arrangement, F26...
F26b
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
5
The Commission must, as soon as reasonably practicable after receiving—
a
a notice under subsection (1), enter in the register maintained under section 89 (register of notifications) the fact that the recognised third party that sent the notice is a lead campaigner in relation to the arrangement;
b
a notice under subsection (1) or (2), enter in that register the name of each third party identified in the notice and the fact that it is a minor campaigner in relation to the arrangement.
F215A
A recognised third party that is subject to the lower-tier expenditure limits may not send a notice under subsection (1).
6
For provision about the effect of sending a notice under this section, see section 94B.
94BEffect where arrangements are notified under section 94A
1
Subsection (2) applies where controlled expenditure is incurred during a regulated period in a part of the United Kingdom—
a
by or on behalf of a minor campaigner in relation to an arrangement, and
b
in pursuance of the arrangement.
2
The expenditure is treated for the purposes of sections 96 to 99A (returns as to controlled expenditure) as having also been incurred, during the period and in the part of the United Kingdom concerned, by or on behalf of any lead campaigner in relation to the arrangement who sent a notice under section 94A(1) or (2) identifying the minor campaigner.
3
In determining for the purposes of section 94(3)(a) whether a limit is exceeded by a third party during a regulated period, controlled expenditure incurred by or on behalf of the third party is to be disregarded if—
a
conditions A and B are met in relation to the expenditure, and
b
condition C is met.
4
Condition A is that the expenditure—
a
is incurred in pursuance of an arrangement that has been notified to the Commission under section 94A(1), and
b
is, by virtue of section 94(6), treated for the purposes of section 94 and Schedule 10 as incurred by or on behalf of the third party.
5
Condition B is that the third party is, at the time the expenditure is incurred, a minor campaigner in relation to the arrangement.
6
Condition C is that—
a
the total of the controlled expenditure incurred during the regulated period in any part of the United Kingdom by or on behalf of the third party, disregarding any expenditure in relation to which conditions A and B are met, does not exceed the limit for that part mentioned in section 94(5), and
b
in the case of a regulated period in relation to which any limit is imposed by paragraph 3, 9 10 or 11 of Schedule 10 (periods involving parliamentary general elections), the total of the controlled expenditure incurred during the regulated period in any particular constituency by or on behalf of the third party, disregarding any expenditure in relation to which conditions A and B are met, does not exceed the limit mentioned in section 94(5ZA).
7
References in subsection (6) to controlled expenditure incurred by or on behalf of the third party include controlled expenditure that is, by virtue of section 94(6), treated for the purposes of section 94 and Schedule 10 as so incurred.
Words in s. 94 cross-heading inserted (30.1.2014) by Transparency of Lobbying, Non-Party Campaigning and Trade Union Administration Act 2014 (c. 4), ss. 30(6), 45(3)(b) (with s. 46(1)(2))