Commentary on Sections Part 2: Political Donations Etc and Expenditure Section 21: Limitation of pre-candidacy election expenses for certain general elections
101.Restrictions on candidates’ expenses are imposed by Part 2 of the Representation of the People Act 1983 (“the 1983 Act”). Subsection (1) of section 21 inserts section 76ZA into Part 2 of the 1983 Act to provide for a second regulated period for candidate election expenses. Where applicable, this operates in addition to the limit set out in section 76 of the 1983 Act.
102.Subsection (1) of section 76ZA specifies that the second spending limit applies only where:
	A Parliament runs for over 55 months before it dissolves, to be counted from the day on which that Parliament was first appointed to meet (subsection (1)(a));
	The election expenses being regulated by the limit are incurred by or of behalf of a candidate in respect of the general election that is held after the Parliament in question is dissolved (subsection (1)(b)); and
	The election expenses being regulated by the limit are used between the 55 month point and the day on which the person “becomes a candidate” at the election (subsection (1)(c)). The point when an individual “becomes a candidate” in this sense is set out in section 118A (meaning of candidate) of the 1983 Act.
103.As the second limit regulates election expenses before an individual formally becomes a ‘candidate’ by virtue of section 118A of the 1983 Act, subsection (1) of section 76ZA provides that section 90ZA (which relates to the meaning of “election expenses”) applies to the second limit with the exception of the words “after he becomes a candidate at the election”. This enables the second spending limit to apply to individuals who go on to become candidates under section 118A but who are not yet candidates at the time that the second limit starts to apply.
104.Subsection (2) of section 76ZA specifies the level of the second spending limit. The level is the relevant percentage of the aggregate of a fixed sum (£25,000) plus a small amount for each entry in the register of electors. This small amount is 7p where the constituency is designated as a county (less densely populated) constituency and 5p where the constituency is designated as a borough (urban) constituency.
105.Subsection (3) of section 76ZA sets out what fraction of the spending limit set out in subsection (2) applies according to which month of its term a Parliament is dissolved in.
106.Subsection (4) of section 76ZA sets out the meaning of “the register of electors” referred to in subsection (2).
107.Subsection (5) of section 76ZA provides that it is an illegal practice for any candidate or election agent to incur or authorise the incurring of election expenses in excess of the permitted amount specified in subsection (2), where the candidate or agent knew or ought reasonably to have known that incurring those expenses would exceed the permitted amount.
108.Subsection (6) of section 76ZA provides that a candidate’s personal expenses are not to be counted against the second limit.
109.Subsection (2)(a) of section 20 states that the provisions in this section do not apply to any expenses incurred before these provisions are commenced. Subsection (2)(b) states that the provisions in this section do not apply to any expenses which are used before 1 January 2010. This provision does not exempt from the effect of the provisions any expenditure incurred after commencement of the section but used after 1 January 2010.