the lobbying act - what trustees need to know

The Lobbying Act – what trustees need to know

Tuesday 13th May

Background to the Act

Where did it come from?• “It is the next big scandal

waiting to happen. It’s an issue that exposes the far-too-cosy relationship between politics, government, business and money.”

– David Cameron, February 2010• “We will regulate lobbying

through introducing a statutory register of lobbyists and ensuring greater transparency”

– Coalition Agreement, May 2010

• A Coalition curveball?

What does the Act do?• Introduces a statutory register of consultant

lobbyists and establishes a Registrar to enforce registration requirements

• Changes the legal requirements for people and organisations who campaign in relation to elections but are not standing as candidates or a registered political party

• Strengthens the legal requirements placed on trade unions in relation to their obligation to keep their list of members up to date

Non-Party Campaigning• Changes to spending limits

• Changes to registration thresholds

• Introduction of constituency limits

• Longer list of qualifying expenses

• New reporting requirements

What activity is included?Definition of controlled expenditure (PPERA 2000)• “expenditure that can reasonably regarded as

intended to promote or procure electoral success”• it is immaterial that it can reasonably be regarded

as intended to achieve any other purpose as well

Electoral Commission:• purpose test• publicity test

Important amendments• Higher registration thresholds• Shorter regulated period• Option for organisations ‘working to a joint plan’• Exclusion of some costs from controlled

expenditure• Review of the law

What happens after registration?

• Record and report spending (including spending by constituency)

• Check the permissibility of donations received above a certain amount that go towards regulated activities

• Submit a spending return or statement of accounts covering the regulated period once the General Election has ended

Concerns for charities• Ambiguity – definition of ‘controlled expenditure’

• Administrative bureaucracy – inclusion of staff costs, new constituency spending regulation etc

• Self-censoring?

• Reputational damage?

Help and guidance• Charity Commission guidance

– Speaking out: guidance on campaigning and political activity by charities (CC9)

– Charities, Elections and Referendums supplementary guidance

• Ministerial statements• Electoral Commission new guidance• Co-ordinated guidance for charities by Electoral

Commission and Charity Commission

Governance Perspective

There is concern that the Act will hinder campaigning either due to requirements or because of uncertainties and misconceptions The overriding duty of all charity trustees is to advance the objects of their charity

A quick reminder of legal duties• Duty to comply with the governing

document• Duty of care• Duty to safeguard and protect the

charity’s resources• Duty to act in the best interests of

beneficiaries and to avoid conflicts of interest

• Duty to act personally• Duty to act collectively• Duty not to profit• Statutory duties e.g. comply with ‘Lobbying

Act’

Governance perspective: key issues to consider• Does your governing document allow

campaigning?• If campaigning is one of the ways to achieve your

objects then you must consider it• Conversely make sure campaigning is in pursuit

of your objects• Know what you don’t know and seek advice• Demonstrate that you have considered the risks

involved and taken steps to manage them• Ensure organisational policies and procedures are

in place• What resource implications does campaigning

and/or registering carry? • Any other issues to consider?

The regulators• Charity CommissionOur central concern is that charities should operate at all times within their own charitable purposes.

Speaking out guidance on campaigning and political activity by charities (CC9)

• Electoral CommissionWe’re not here to terrify people and say ‘if you don’t abide by the law, then we’ll come down on you like a ton of bricks’.

Article - Keeping within the rules on lobbyingCivil Society, 3 April 2014

Do you need to register?

Do you need to register?

• Electoral Commission guidance to be published in July

• Gateway test

• Key questions to consider

Q1 Will you be campaigning between September 2014 and May 2015 (the registered period)?

Q2 Is you campaign public-facing?

Q3 Could the campaign be reasonably regarded as intended to promote of procure electoral success?

Q4 Is it likely that you will spend over £20,000 – including a reasonable estimate of staff costs – in the registered period?

You do not need to register

You may need to register, go to Q2








YesNo Maybe

YesNo Maybe

YesNo Maybe

Continued

Q5 Will a proportion of your spending be targeted at a specific constituency?

Q6 Are you working in coalition with other charities on a campaign?

You probably do not need to register, but check Q 5 & 6 to be sure

You will need to register, but still check Q 5 & 6

You may need to register, but still check Q 5 & 6

You will need to register and can spend max. £9.750 in constituency

If you also did not need to register individually, you do

not need to register.



Q4 Is it likely that you will spend over £20,000 – including a reasonable estimate of staff costs – in the registered period?

You probably do not need to register, but check Q6 to be sure

YesNo Maybe

YesNo Maybe

YesNo Maybe

You may need to register and can spend maxi. £9.750 in constituency

Key considerations for trustees

• Governance or operational

• Members and supporters

• Campaign planning

• Accounting for time and resources

Electoral Commission:update on activity

Any questions?

Forthcoming events

Breakfast learning session – Reading the polls: What to expect in 2015? 10th June, 8:30 – 11am

Certificate in Campaigning Starting 1st October

the lobbying act - what trustees need to know

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