The Lobbying Act

1. The Lobbying Act- What you need to
know ahead of the Assembly elections
Clare Hardy, Associate (PSL)
15th
March 2016

2. Elections in Wales in 2016
• 5 May 2016
• National Assembly for Wales
• Police and Crime Commissioners

3. Legislation
• Transparency of Lobbying, Non-Party
Campaigning and Trade Union Administration Act
2014
• Political Parties, Elections and Referendums Act
2000 – Amended by Transparency of Lobbying,
Non-Party Campaigning and Trade Union
Administration Act 2014

4. Other relevant legislation
• National Assembly for Wales (Representation of
the People) Order 2007
• Representation of the People Act 1983
• Charity Law

5. Why introduce new legislation?
• Coalition Agreement after May 2010 general
election:
• “We will regulate lobbying through introducing a
statutory register of lobbyists and ensuring
greater transparency.”
• “We will also pursue a detailed agreement on
limiting donations and reforming party funding in
order to remove big money from politics.”

6. Transparency of Lobbying, Non-Party
Campaigning and Trade Union
Administration Act 2014
• Part 1: Registration of Consultant Lobbyists
• Part 2: Non-Party Campaigning
• Part 3: Trade Unions’ Register of Members
• Part 4: Supplementary

7. Registration of consultant lobbyists
• Consultant lobbying: Communication with
Minister of the Crown or permanent secretary
relating to UK Government:
‒ Legislation, policy, contracts, grants, licences,
other authorisation, exercise of functions
• Therefore does not apply to communication with
Welsh Ministers on devolved matters

8. Lobbying Welsh Ministers
• Presiding Officer told Secretary of State Assembly
should make decisions on governance
• Assembly’s Standards Commissioner and
Standards Committee decided arrangements to
regulate lobbying were sufficiently robust

9. Assembly Guidance
• National Assembly For Wales Guidance On
Lobbying And Access To Assembly Members
• Supplements Code of Conduct for Assembly
Members
• AM must not bring Assembly into disrepute
• No preferential access or treatment for
professional lobbyists or their employers
• Professional lobbyist includes all those
undertaking lobbying on a professional basis and
in a paid role

10. Assembly Guidance
• AM must know identity of person or organisation
lobbying and motive for lobbying
• AM should consider keeping records of meetings
with lobbyists
• AM should not accept paid work involving
lobbying
• AM should decline gifts from professional
lobbyists
• AM may attend events – but not if promoted as
buying access or influence over AM

11. Registration of consultant lobbyists
when Part 1 of the Act applies
• Consultant lobbying
‒ Communication with Minister of the Crown or
permanent secretary relating to UK Government
‒ By person registered under Value Added Tax Act
1994
‒ On behalf of another person for payment in the
course of business
‒ Not subject to an exception

12. Registration of consultant lobbyists:
Requirements
• Registration
• Provision of information to Registrar – every
quarter and on notice from Registrar of
Consultant Lobbyists
• Offences when failing to comply
• Power for Registrar to impose civil penalty

13. Offences
• Carrying on consultant lobbying business whilst
unregistered
• Consultant lobbying whilst registration is
materially inaccurate or incomplete
• Failure to submit information return by two
weeks after quarter end

14. Offences
• Provision of materially inaccurate or incomplete
information return
• Failure to provide information in response to
information notice by specified deadline
• Provision of materially inaccurate or incomplete
information in response to an information notice

15. Civil Penalties
• Registrar may impose civil penalty if satisfied a
person’s conduct is an offence
• Registrar must first serve notice and allow
written representations
• Civil penalty may not be imposed after criminal
proceedings instituted
• Person may not be convicted of offence for
conduct for which they received civil penalty

16. Non-party Campaigning
• Amendment of Political Parties, Elections and
Referendums Act 2000 – Part VI
‒ Definitions of controlled expenditure and election
material
‒ Limits on controlled expenditure
‒ Amended details of recognised third parties and
requirements for reporting donations to
recognised third parties
‒ Provision for lead and minor campaigners

17. Controls relating to third party
national election campaigns
• Current requirements of Part VI Political Parties,
Elections and Referendums Act 2000

18. Controlled Expenditure
• Expenses incurred by or on behalf of a third party
which can reasonably be regarded as intended to
promote or procure electoral success at a relevant
election for:
‒ Registered party
‒ Registered parties advocating particular policies
‒ Candidates holding particular opinions
• Includes prejudicing electoral success of other
candidate
• Does not need to name party or candidate

19. Controlled Expenditure
• Expenses on:
‒ Material made available to the public
‒ Canvassing and market research
‒ Press conferences and other media events
‒ Transport of persons to places to obtain publicity
‒ Public rallies and other public events – other than
annual conference or public procession or protest
meeting as defined in Public Processions (Northern
Ireland) Act 1998 for which notice is given
• Includes cost of premises
• Does not include cost of protection

20. Notional Controlled Expenditure
• Property, services, facilities given free of charge
or at a discount of more than 10%
• With a value of over £200
• Used by third party in the same way as controlled
expenditure

21. Purpose and Public Tests
• Activity may have purpose of influencing voters
even if not naming party or candidate – if
campaigning for a policy closely associated with
political party
• Electoral Commission Guidance:
• Members and committed supporters of an
organisation not usually considered public
• Other people an organisation regularly
communicates with usually considered public

22. Election Material
• Material which can reasonably be regarded as
intended to promote or procure electoral success
at a relevant election for:
‒ Registered party
‒ Registered parties advocating particular policies
‒ Candidates holding particular opinions
• Includes prejudicing electoral success of other
parties or candidates
• Does not need to name party or candidate

23. Recognised third parties
• Third party
‒ Person or body other than a registered party
‒ Registered party promoting or procuring electoral
success of another registered party
• Recognised third party
‒ Third party which has registered with Electoral
Commission under s.88 Political Parties, Elections
and Referendums Act 2000

24. Regulated period
• A period in relation to which a limit is imposed by
Schedule 10 to the Political Parties, Elections and
Referendums Act 2000

25. Regulated period for 2016 Assembly
Election
• Regulated period for Assembly election: 5
January 2016 to 5 May 2016
• Spending on regulated campaign activity for
police and crime commissioner elections in Wales
counts towards expenditure limit for National
Assembly elections – Electoral Commission
guidance

26. Restrictions on controlled expenditure
• Must be authorised by responsible person or
person authorised by responsible person
• Must be within financial limits imposed by
Political Parties, Elections and Referendums Act
2000

27. Payment of controlled expenditure
• Payments must be made by responsible person
or person authorised by them
• Payments of more than £200 must be supported
by invoice or receipt
• Claims for payment must be sent to responsible
person no later than 30 days after end of
regulated period

28. Limits on controlled expenditure by
third parties
• Limit during regulated period by third party
which is not recognised third party:
‒ England: £20,000
‒ Scotland, Wales, Northern Ireland: £10,000

29. Limit on controlled expenditure by
recognised third party
• General election to National Assembly for Wales:
£30,000

30. Notification of lead and minor
campaigners
• Third parties campaigning together can notify
Electoral Commission of lead campaigner and
minor campaigner

31. Returns relating to controlled
expenditure
• Responsible person must provide Electoral
Commission with return relating to controlled
expenditure by recognised third party during
regulated period
• Commission makes returns available for public
inspection

32. Reports on controlled expenditure by
third parties
• Responsible person must report to Electoral
Commission on controlled expenditure: item,
supplier, value, date
• Notional controlled expenditure
‒ Must report value of items received free
‒ Must report items of items received at
commercial discount if worth more than £200

33. Reports on donations to recognised
third parties
• Responsible person must report donations
‒ All impermissible donations
‒ All accepted donations over £7,500
‒ All accepted donations adding up to over £7,500
from same donor
‒ Total of other accepted donations worth more
than £500 and less than or equal to £7,500

34. Deadlines for 2016 Assembly election
• Receipt of invoices for campaign spending: 6 June
2016
• Payment of invoices for campaign spending: 4
July 2016
• Reporting campaign expenditure and donations:
5 August 2016

35. Suggested Actions
• Decide if your activities require you to register
with Electoral Commission Keep this under
review
• Consider status of information on issues
supported by particular parties
• Consider impact of joint campaigning

36. Government Grants: Anti-lobbying
clause
• UK Government grants to include anti-lobbying
clause in terms and conditions from 1 May 2016
• “The following costs are not Eligible
Expenditure:- Payments that support activity
intended to influence or attempt to influence
Parliament, Government or political parties, or
attempting to influence the awarding or renewal
of contracts and grants, or attempting to
influence legislative or regulatory action.”

37. Guidance from Electoral Commission
• Introduction for non party campaigners
• National Assembly for Wales and Police and
Crime Commissioner elections May 2016: Non-
party campaigners

38. Q & A
Clare Hardy
T: 029 2039 1766
E: clare.hardy@geldards.com

39. Thank You