The Parliamentary Under-Secretary of State, Ministry of Housing, Communities and Local Government (Baroness Taylor of Stevenage) (Lab)

My Lords, I am very pleased to open this Second Reading debate on the Representation of the People Bill. Noble Lords across the House bring great experience of electoral law, electoral administration and the practical operation of our democracy. I look forward to the contributions that will be made today and to the constructive scrutiny that our House will bring to the Bill. This Bill renews our democracy for a new generation, opening up participation and strengthening the integrity of our elections. It restores confidence, reinforcing trust with stronger political finance rules and better protections against harassment and intimidation, closing down opportunities for those who would seek to undermine our democracy. But it would be wrong to introduce this debate without acknowledging and reflecting on events of recent times. When I catch the 6.15 am or the 6.31 am train from Stevenage to London in the mornings, I share the carriages of that train and then the Underground with people whose interests are at the heart of our community: tradespeople, in their steel-toecap boots; public sector workers, including those in blue light services, heading for their early shifts; and small business owners getting an early start to prepare for their day. It is a fundamental principle of our democracy that every one of their votes is exactly equal to the votes of millionaires, crypto bros and industry magnates. It is that which sits front and centre in this Bill. We must put politics back under public control. We all share concerns about the rise of big money and its ability to dominate public power. At its heart, this Bill is about renewing the foundations of our electoral system so that it remains fair, secure, transparent and accessible in the years ahead. At the Last Night of the Proms on Saturday, the conductor, Sakari Oramo, referred to another version of AI, which was authenticity and integrity. That must sit at the heart of electoral reform, so that we restore the confidence of the 6 am crew that their voice really counts. Delivering on our manifesto commitment, this Bill extends the franchise to eligible 16 and 17 year-olds for UK parliamentary elections and other reserved and excepted polls. It enables more automated forms of electoral registration, broadens the forms of voter identification that may be used at polling stations, and makes a range of changes to the conduct and administration of elections, referendums and recall petitions. The Bill strengthens the rules on political donations and expenditure, including measures to reduce the risk of foreign money entering our politics. It improves transparency in digital campaigning material, strengthens enforcement and information sharing by the Electoral Commission, and requires tougher sentencing where offences are aggravated by hostility towards candidates, elected officeholders, campaigners or electoral staff. Opportunities for those who seek to undermine or illicitly influence our democracy must and will be closed down. This Bill responds directly to a changing and increasingly hostile threat environment and takes action to tackle risks by strengthening safeguards, closing loopholes and hardening defences. Taken together, these measures will help deliver a modern, secure and inclusive electoral system. They will support public confidence, protect our democracy from those who would seek to undermine it and open participation to a new generation of voters. The Bill is ambitious but practical. It addresses the everyday operation of democracy: who can take part, how they register and vote, how campaigns are funded and conducted, and how the rules are enforced. The balance is important. The Government are not seeking reform for their own sake. The measures in the Bill respond to real changes in political campaigning, how people participate in politics and how threats to democratic confidence can arise. Some of these changes are technological, some are administrative and some reflect the need to ensure that our democratic arrangements command confidence across generations. The Bill therefore looks both to the integrity of the system and to the experience of those who use it: voters, candidates, parties, campaigners and electoral administrators. The Bill is not the totality of our ambition for electoral reform; work will continue. As a first step, the First Secretary of State and the Secretary of State for MHCLG have written to the Electoral Commission to review spending limits, which we believe are too high. We are establishing a cross-government task and finish team to consider threats to UK democracy, including political funding, illegitimate influence and broader threats to political equality. As noble Lords would expect, the Bill has not remained frozen in aspic since its introduction; it has continued to develop through scrutiny, engagement and the Government’s consideration of how best to give effect to its objectives. During its Commons stages, the Government brought forward both substantive and technical amendments to strengthen the Bill in response to points raised by Members and to ensure it better delivers its policy intent. For example, the Government brought forward amendments to strengthen the “know your donor” requirements and further tighten the rules relating to donations made by unincorporated associations. Those changes were designed to improve transparency and ensure that the political finance regime keeps pace with the risks it is intended to address. These risks cannot be overstated. The threat to our democracy from foreign influence and hidden sources of political funding are an ever-growing danger—one that we cannot afford to delay tackling. Responding to further evidence of the threat we face—namely, the conviction of Nathan Gill, as well as cases such as Christine Lee—we commissioned Philip Rycroft to review foreign financial influence and interference in politics. His report was thorough and challenging, and the Government have accepted its recommendations. Safeguarding the integrity, transparency and fairness of our electoral system is a fundamental priority, and the Bill provides an important vehicle for taking that work forward. A number of recommendations from the Rycroft review were therefore implemented through amendments made to the Bill on Report in the Commons. Those amendments form a significant part of the Government’s wider response to the risks identified by the review. The first of those changes concerns crypto assets. The current political donations framework does not sufficiently reflect the particular risks that crypto assets can present, including the difficulty of identifying the true source of a donation. That creates a risk that malign actors, including state actors, could seek to obscure the origin of the funds. The Bill therefore introduces a ban on the use of crypto assets as a means of making political donations. To support that change, the Government have amended the Bill to clarify the meaning of a donation under the Political Parties, Elections and Referendums Act 2000. That will ensure that property, including crypto assets transferred to a party to meet an expense, is treated as a donation, so that the law cannot be circumvented simply because value is transferred through property rather than cash. The Bill caps donations to registered political parties by overseas electors at £100,000. This also applies to individuals who were formerly resident outside the UK, who are subject to the cap for a minimum of a calendar year after arrival here. That responds to concerns identified by the Rycroft review: first, that the origin of funds from overseas donors can be harder to trace; and, secondly, that democratic fairness may be put at risk if individuals are able to make unlimited donations into the political system while having only a limited connection to public life in the United Kingdom. Further amendments change the test for company donations so that it is based on profit rather than revenue. That change follows careful consideration of the Rycroft review and engagement with stakeholders. Profit provides a clearer indication of a company’s financial position and helps ensure that donations come from companies undertaking genuine economic activity. The Bill was also amended to implement the Rycroft recommendation that the Electoral Commission’s information-sharing powers should be extended. This will enable the commission to receive relevant information from relevant public authorities as defined in the Bill, supporting more effective regulation of political finance and a better understanding of emerging risks. The Government also amended the Bill to extend the commission’s powers to require disclosure of information outside a formal investigation, allowing the commission to more proactively monitor compliance, support timely regulation during election periods, and take a more proportionate and effective approach to enforcement. Beyond the Rycroft recommendations, on Report the Government introduced a targeted regulation-making power into the Bill to allow key political finance restrictions, including those relating to crypto assets, overseas elector donation caps and company donations, to be extended beyond political parties via secondary legislation in the future. This is to ensure that malign actors cannot circumvent the rules by providing to other non-party regulated donees. While much of the consideration of the Bill so far has been focused on strengthening the political finance provisions, the Government tabled further amendments on Report to extend the maximum duration of longer-term postal and proxy postal voting arrangements from three years to five, and to better align the duration of anonymous elector registration provisions with those changes. These changes will provide greater clarity and consistency while reducing repeated administrative burdens on people who may already be vulnerable. The Government have also amended the Bill to clarify when an overseas elector may be removed from the electoral register. Overseas electors must satisfy specific eligibility requirements when they register. Although registration lasts for three years, circumstances may change during that period. These amendments ensure that an individual who no longer meets the requirements can be removed, helping electoral registers remain accurate. Taken together, the Commons amendments strengthen the public scrutiny of political finance, reduce avoidable administrative burdens and ensure that the Bill responds sensibly to modern forms of participation, campaigning and donation. As the Bill has progressed, our desire to engage with all interested parties and our willingness to listen to opposing viewpoints has continued. Following the strength of feeling expressed at Second Reading in the House of Commons, the Government tabled an amendment in Committee to repeal the Government’s powers to designate a strategy and policy statement to which the Electoral Commission must have regard. That repeal supports our manifesto commitment to strengthen democracy and uphold the integrity and independence of the Electoral Commission. The Government have committed to tabling an amendment during the Bill’s passage through this House to strengthen accessibility at polling stations for voters with disabilities. We will develop that amendment in the spirit of the new clause brought forward on Report in the Commons, working with interested Members of both Houses to ensure that any new provision is proportionate, practical and deliverable. In addition to introducing a robust regime that ensures that donors contributing above the £100,000 annual cap must demonstrate a genuine and ongoing connection to the United Kingdom, we are considering how we will strengthen the residency requirements, including ensuring that the length of time spent in the UK aligns with broader government policy. We will continue to engage with political parties bilaterally and through the Parliamentary Parties Panel, and we will provide the House with further details in due course. I am keen for that spirit of constructive engagement to continue as the Bill proceeds through this House. I have hosted a drop-in session for all Peers, and I have been pleased to meet a number of noble Lords separately. Throughout the passage of this Bill, my door will remain open to those who wish to discuss any aspect of it with me. Outside this House, we have worked and will continue to work with bodies such as the Parliamentary Parties Panel and stakeholders across the electoral sector to ensure that the Bill operates effectively for political parties, electors and administrators. We have also engaged with Ministers and officials in the Scottish Government, the Welsh Government and the Northern Ireland Executive, recognising that implementation will require continued close working with the devolved Governments and legislative consent in those areas within the responsibility of the devolved legislatures. I also recognise that successful implementation will matter as much as the legislation itself. Electoral administrators, returning officers and those who support the running of elections locally will be central to making many of these reforms work in practice. The Government will continue to engage closely with them as the Bill progresses and as the necessary secondary legislation, guidance and operational changes are developed. We want reforms that are ambitious but also workable, clear and capable of commanding confidence on the ground. Democracy is not sustained by institutions and legislation alone. It depends on people believing that their voice matters, that the rules are fair and that the outcome of an election reflects the free choice of the electorate. That confidence must never be taken for granted. This is a substantial and important set of reforms to electoral law. I know that noble Lords will bring expertise, rigour and practical insight to its consideration. I look forward to engaging with those debates in the constructive spirit in which the Bill has been developed. I beg to move.