Commentary on Sections Schedule 3: Controlled expenditure: qualifying expenses Section 30: Targeted expenditure limits
85.Subsection (2) amends section 79 of PPERA to identify the new provision in Part 6 of that Act under which certain controlled expenditure incurred by or on behalf of a recognised third party, which is targeted at a registered party, must be counted towards that registered party's overall campaign expenditure limit.
86.Subsection (3) amends section 80(4) of PPERA so that returns as to campaign expenditure must also include a declaration by the treasurer or deputy treasurer where authorised expenditure has been incurred. The requirement to make the declaration is provided by new section 94D(5).
87.Subsection (8) inserts new sections 94C to 94H into PPERA. These sections impose limits on, and make other provisions relating to, controlled expenditure incurred by or on behalf of a third party where the expenditure is targeted at a particular registered party.
88.New section 94D(1) defines when controlled expenditure is regarded as targeted at a registered party – when it is intended to benefit that party or its candidates, and no other party or its candidates.
89.New section 94D(3) provides that targeted controlled expenditure limits apply during the regulated period for a UK Parliamentary General election.
90.New section 94D(4)(a) introduces limits on the targeted controlled expenditure a recognised third party can incur in parts of the United Kingdom during what is ordinarily the regulated period for a UK Parliamentary General election. These are 0.2% of the maximum campaign expenditure limits for each part of the UK, and are as follows:
91.New Section 94D(4)(b) refers to combined limits where a UK Parliamentary General election and another election are pending. For the purposes of the combined period (of the two regulated periods), subsection (4)(b) specifies that the relevant targeted controlled expenditure limit can be calculated by dividing the number of days in the combined period, by the number of days in what is ordinarily the regulated period for a UK Parliamentary General election and multiplying the amount by the limit for the relevant part of the United Kingdom. For example:
92.The targeted controlled expenditure limit in this instance for England (for a combined European Parliamentary and UK Parliamentary General election) would be £41,180.
93.New section 94E provides that where a recognised third party is not authorised by the registered party to incur targeted controlled expenditure in excess of the limits outlined in new section 94D and it still does so, it (and, in the case of a third party that is not an individual, the responsible person) is guilty of an offence. A third party is also guilty of an offence if it is authorised to incur targeted controlled expenditure, but exceeds any cap specified in the authorisation. The penalties for the offences are inserted into Schedule 20 to PPERA by subsection (9).
94.New section 94F provides that where a recognised third party incurs authorised targeted controlled expenditure, only the amount of controlled expenditure incurred above the limit specified in new section 94D, and up to any specified cap, will count towards the overall campaign expenditure limit of the registered party.
95.In determining whether the treasurer or a deputy treasurer commits an offence where the registered party exceeds its campaign expenditure limit as a result of this new rule, references in section 79(2) of PPERA to the authorisation of expenditure by the treasurer or a deputy treasurer will be treated as references to the signing of the authorisation (of targeted controlled expenditure) under new section 94G.
96.New section 94F(5) specifies that the treasurer or a deputy treasurer of the registered party must make a declaration of the amount of expenditure that may be incurred by the third party, and of the amount of that expenditure that is actually incurred and counts towards the registered party’s limit under Part 5 of PPERA. The treasurer (or deputy treasurer) will commit an offence if a false declaration is knowingly or recklessly made (new section 94F(6)). The penalty for the offence is inserted into Schedule 20 to PPERA by subsection (9).
97.New section 94G makes provision about how a registered party may give authorisation to a recognised third party, so it may incur spend above the limits in 94D. Authorisation must be in writing, signed by the party treasurer or deputy treasurer, and must specify the part of the UK it relates to. The authorisation may also stipulate a cap, above which targeted controlled expenditure cannot be incurred. Authorisation will only come into effect once a copy has been provided by the registered party to the Electoral Commission.
98.A registered political party may withdraw authorisation at any time, provided it is in writing and signed by a relevant officer. It will only come into effect on registration with the Electoral Commission.
99.New section 94H defines for the purposes of this new regime what it is to exceed a targeted expenditure limit, or a cap specified by the registered party when authorising expenditure.  Whether or not any item of expenditure incurred by or on behalf of the third party exceeds a limit or cap depends on the cumulative amount incurred by or on behalf of that recognised third party in the regulated period in question and in the relevant part of the United Kingdom.  The definition makes clear that a separate cumulative total needs to be calculated of expenditure targeted at separate registered parties.