Commentary on Provisions Part 3: Campaign finance
72.The existing regulatory framework governing the spending and funding (political or campaign finance) of candidates, political parties and third-party campaigners and other campaigners is contained within the Representation of the People Act 1983 (the “1983 Act”) and the Political Parties, Elections and Referendums Act 2000 (“PPERA”).
73.Part 4 of the Elections Act 2022 made some changes to campaign finance rules for UK elections which are reserved to Westminster (in terms of the Scotland Act 1998). This Part contains provisions which provide for consistency with some of the changes to the rules made by the Elections Act 2022, as they concern devolved Scottish elections.
74.The Elections Act 2022 made amendments to the 1983 Act and PPERA in relation to reserved elections, to clarify the law in relation to notional expenditure, to ensure that benefits in kind, such as property, goods, services or facilities that are supplied to a candidate, party or campaign for free or at a discount, should only qualify as an election expense for the relevant campaign where it is authorised or directed by the campaign. This clarification came as a result of a Supreme Court judgment (R v Mackinlay and others [2018])(17) that held such notional expenditure was an election expense without the need for authorisation.
75.The Elections Act 2022 also introduced some restrictions on the ability of third parties, meaning individuals or organisations that are not registered political parties, to incur controlled expenditure in regulated periods in advance of elections to the House of Commons or to the Northern Ireland Assembly. Broadly speaking, controlled expenditure relates to reportable expense to support specified activity that meets the purpose of influencing voters to vote in a particular way.