Elections expense limits - Parliament

Election expense limits 

Standard Note: SN/PC/3413 

Last updated: 18 March 2005 

Author: Richard Kelly 

Parliament and Constitution Centre 

This note details the spending limits imposed on parties and candidates in general election 

campaigns 

Since the Corrupt and Illegal Practices Act 1883 there have been legal limits on how much 

individual candidates can spend on their general election campaign. 

The Political Parties, Elections and Referendums Act 2000 (PPERA) introduced limits on 

how much parties could spend at the national level, for the first time. These limits were first 

applied in the 2001 election, with some modifications. They will be applied again in the next 

general election campaign. 

The Electoral Commission pointed out that there were discrepancies in the periods of time in 

which expenses against these limits for national and constituency campaigns are calculated. 

It has recently proposed that the limits and their rules should be reviewed. 

Contents 

A. Candidates’ expenses limits 2 

1. The Electoral Commission’s recommendation 2 

2. The revised limits 3 

3. Calculation of expense limits 4 

4. Definition of expenses 5 

B. National campaign limits 6 

C. Recommendations for changes to the spending limits 7 

Appendix: Changes in candidates’ expenses limits 8 

Standard Notes are compiled for the benefit of Members of Parliament and their personal staff. Authors are 

available to discuss the contents of these papers with Members and their staff but cannot advise others.

A. Candidates’ expenses limits 

Candidates’ expenses limits are set by the Representation of the People Act 1983 but the 

limits can be amended by Order of the Secretary of State. Until PPERA, expenses limits 

were increased in line with inflation. The RPA 1983 specified the following conditions for 

increasing limits: 

(3) The Secretary of State may by order vary a maximum amount of candidates' 

election expenses specified in subsection (2) above where in his opinion there has 

been a change in the value of money since the last occasion on which that amount 

was varied by such an order, and the variation shall be such as in his opinion is 

justified by that change. 

An order under this subsection shall not be made unless a draft of the order has been 

laid before, and approved by resolution of, each House of Parliament; and the power 

to make the order is exercisable by statutory instrument. 1 

Since the passing of PPERA, the Secretary of State can take advice on revisions from the 

Electoral Commission. The above section has been repealed and section 76A added to the 

RPA 1983; it reads: 

[(1) The Secretary of State may by order made by statutory instrument vary any of 

the sums to which this section applies— 

(a) where he considers that the variation is expedient in consequence of 

changes in the value of money, or 

(b) in order to give effect to a recommendation of the Electoral Commission. 

[…] 

(3) An order under subsection (1)(b) above shall be subject to annulment in 

pursuance of a resolution of either House of Parliament.] 

In making its recommendations to the Secretary of State, the Electoral Commission is able to 

take into account factors other than inflation. 

1. The Electoral Commission’s recommendation 

In November 2004, the Electoral Commission was asked by the Secretary of State for 

Constitutional Affairs to make recommendations for revisions to the candidates’ expenses 

limits. 

On 14 January 2005, it published its recommendations, which are set out in the table below: 

1 

Representation of the People Act 1983, s76(3) 

2

Table 1: Recommended candidates’ expenses limits 

Election Current expenses limit Recommended expenses limit 

Basic 

(£) 

Per elector 

(p) 

Basic 

(£) 

Per elector 

(p) 

UK Parliament 

(borough 

5,483 4.6 7,150 5 

constituency) 

UK Parliament 

(county 

5,483 6.2 7,150 7 

constituency) 

Source: Electoral Commission 2 

The Electoral Commission reported that it had taken into account both inflation, since the 

limits were last increased (based on the GDP deflator), and to reflect changes in the definition 

of election expenditure that was included in PPERA – most notably that notional expenditure 

has to be recorded in a candidate’s election expenses return. 

The Electoral Commission calculated that the basic limit (for both borough and county 

constituencies) needed to increase by £618 to take into account the effect of inflation and by a 

further £1,027, to allow for the change in definition of expenses (the latter figure was based 

on estimates of the average office rental costs of a candidate). It calculated that to allow for 

inflation the per elector limits would need to increase to 5.1p and 6.9p for borough and 

county constituencies, respectively. However, in reaching its final recommendations 

expenses limits were “rounded up to the nearest £50 for the basic rate element and the nearest 

pence for the per elector element, in order to ensure that limits are based on figures that are 

both easy to calculate and remember”. 3 

2. The revised limits 

As shown in the two quotations above, PPERA also affected the way in which changes to 

expenses limits are implemented In order to give effect to these recommendations or 

alternative limits, the Secretary of State has to make an Order. Until the passing of PPERA, 

the Order was made under the affirmative procedure. Since the passing of PPERA, the Order 

is now made under the negative procedure. 

On 10 February 2005, the Government announced, by way of a Written Ministerial Statement 

that the Electoral Commission’s recommendations had been accepted: 

2 

3 

Electoral Commission, Variation of election expenses for candidates at UK Parliamentary and local 

government elections: Recommendations, January 2005, 

http://www.electoralcommission.org.uk/files/dms/Variations_15470-11493__E__N__S__W__.pdf 

Ibid, pp9-14 

3

The Parliamentary Under-Secretary of State, Department for Constitutional 

Affairs (Mr. Christopher Leslie): The Government have laid before Parliament the 

following instrument: 

The Representation of the People (Variation of Limits of Candidates' Elections 

Expenses) Order 2005 

This order reflects The Electoral Commission's recommendations of 12 January 2005 

on the maximum amounts of candidates' election expenses at a parliamentary general 

election in the United Kingdom and at local government elections in England and 

Wales, as detailed in their report: "Variation of election expenses limits for candidates 

at UK parliamentary and local government elections". 

The recommendations have been agreed by both the Secretary of State for 

Constitutional Affairs and the First Secretary of State in respect of their separate and 

distinct responsibilities for electoral matters. The Department for Constitutional 

Affairs broadly takes responsibility for national issues, in particular parliamentary 

and European parliamentary elections. The Office of the Deputy Prime Minister 

broadly takes responsibility for local election matters. 4 

The Order was laid on the same day and came into force on 4 March 2005. The revised limits 

were set, as per the Electoral Commission’s recommendation, at £7,150 in each constituency 

and a further 5 pence per elector in borough constituencies or a further 7 pence per elector in 

county constituencies. 

The Order also revised the limits for local elections to £600 per ward plus 5 pence per 

elector. 5 

3. Calculation of expense limits 

Section 76 (4) of the Representation of the People Act 1983, as amended, states that the 

number of electors used in calculating the candidates’ expense limit is determined by the 

number of electors on the appropriate register on the “last day for publication of notice of 

election”: 

(4) In subsection (2) above “the register of electors” means the register of 

parliamentary electors, or (as the case may be) local government electors, for the 

constituency or electoral area in question as it has effect on the last day for 

publication of notice of the election. 

4 

5 

HC Deb 10 February 2005 c86WS 

The Representation of the People (Variation of Limits of Candidates' Election Expenses) Order 2005 SI 

2005/269 

4

4. Definition of expenses 

Following an election, election agents are required to submit a return detailing the expenses 

incurred by a candidate. In the case of a general election, the return must be submitted within 

35 days of the day after the results were declared; it should be submitted to 

What constitutes an election expense is defined in the RPA 1983, as amended. The Electoral 

Commission provides the following summary of the definition of election expenses: 

Election expenses are any expenses incurred in promoting a candidate's election. All 

expenses incurred in relation to items used to promote a candidate during a specified 

period must be treated as the candidate's election expenses and count against the 

candidate's election expenses limit, regardless of when the expenditure was incurred. 

Examples of candidates' election expenses include items such as: 

• printing and distribution of leaflets or other promotional material; 

• advertising material (e.g. posters and rosettes); 

• expenses incurred in relation to various types of communications (e.g. 

telephone, fax, internet); 

• administrative costs (e.g. the maintenance of a campaign office); 

• postage; 

• expenses relating to holding public meetings (including payment of 

speakers); 

• fees paid to election agents, sub-agents, polling agents or to clerks and 

messengers during the election etc.; 

• expenses relating to the hire of committee rooms during an election; 

• miscellaneous items. 

Election expenses include any notional expenses, that is, the commercial value of any 

goods or services provided free of charge or at a discount from normal commercial 

prices. For example, if an individual who supported a candidate's campaign supplied 

the candidate with promotional leaflets at just 50% of the usual commercial price, the 

discount provided to the candidate should be treated as notional expenditure. 6 

Although the regulated period begins at the moment an individual becomes a candidate (now 

not before Parliament has been dissolved) and ends with the poll, expenses incurred before 

that time count against the limit if the goods and services procured are used for the purpose of 

the candidate’s election in the regulated period. 

The Electoral Commission has also produced Election expenditure and donations: guidance 

for candidates and election agents, which is available on the Commission’s website. 7 

6 

7 

Electoral Commission, Candidates’ election expenses, 

http://www.electoralcommission.org.uk/regulatory-issues/legcandidates.cfm 

Electoral Commission, Election expenditure and donations: guidance for candidates and election agents, 

September 2004, 

5

B. National campaign limits 

For the first time, PPERA imposed limits on how much registered political parties could 

spend on campaigning in various circumstances. Schedule 9 imposes limits in parliamentary 

elections. It also specifies that expenditure in the 365 days up to the day of a general election 

is counted towards the limit. The national expenditure limit faced by a political party is 

based on the number seats it contests: 

3. - (1) This paragraph imposes limits in relation to campaign expenditure incurred by 

or on behalf of a registered party which contests one or more constituencies at a 

parliamentary general election. 

(2) Where a registered party contests one or more constituencies in England, Scotland 

or Wales, the limit applying to campaign expenditure which is incurred by or on 

behalf of the party in the relevant period in that part of Great Britain is- 

(a) £30,000 multiplied by the number of constituencies contested by the party in 

that part of Great Britain; or 

(b) if greater, the appropriate amount specified in sub-paragraph (3). 

(3) The appropriate amount is- 

(a) in relation to England, £810,000; 

(b) in relation to Scotland, £120,000; and 

(c) in relation to Wales, £60,000. 

(4) Where a registered party contests one or more constituencies in Northern 

Ireland, the limit applying to campaign expenditure which is incurred by or on 

behalf of the party in the relevant period in Northern Ireland is £30,000 

multiplied by the number of constituencies contested by the party there. 8 

Schedule 10 imposes limits on the expenditure of “recognised third parties”. 

The rules imposing limits on campaign expenditure in 2001 were modified because the 

relevant part of the Act did not come into force until 16 February 2001 (within the twelvemonth 

period leading up the 2001 General Election). The Political Parties, Elections and 

Referendums Act 2000 (Commencement No 1 and Transitional Provisions) Order 2001 made 

provisions for parties to spend the equivalent of up to £24,000 per constituency. 9 In its report 

on campaign spending in the 2001 General Election, the Electoral Commission summarised 

the expenditure limits for parties and reported how much the parties had spent on their 

campaigns. 10 The Electoral Commission’s information and details for the next General 

Election are set out below. 

8 

9 

10 

http://www.electoralcommission.org.uk/files/dms/Guidanceforelectionagents(final)_15449- 

10977__E__N__S__W__.pdf 

Political Parties, Eelctions and Referendums Act 2000, chapter 41, Schedule 9 

Political Parties, Elections and Referendums Act 2000 (Commencement No 1 and Transitional Provisions) 

Order 2001 SI 2001/222 

Electoral Commission, Election 2001 – Campaign spending, November 2002, 

6

Table 2: Limits on Campaign Expenditure – Parliamentary Elections (£) 

2001 Election* Next Election** 

Great Britain 15,360,000 18,810,000 

Scotland 1,728,000 1,770,000 

Wales 960,000 1,200,000 

Northern Ireland 432,000 540,000 

England 12,696,000 15,870,000 

* limit based on £24,000 per constituency (excludes Speaker’s constituency in Great Britain total) 

** limit based on £30,000 per constituency, allowing for 13 fewer Scottish constituencies (excludes Speaker’s 

constituency in Great Britain total) 

C. Recommendations for changes to the spending limits 

In its report on The funding of political parties, the Electoral Commission noted that: 

• candidates’ expenses limits and national campaign limits were applied to different 

campaign periods; and 

• low limits for candidates limited their ability to campaign. 

Despite these limits having not yet been fully applied in full (transitional arrangements 

applied in 2001), the Commission formally recommended that following the next general 

election they should be reduced: 

We recommend that the financial limits on political parties’ campaign expenditure, 

together with those applying to individual candidates, be reviewed for all relevant 

elections, starting with a review of the spending limits for Westminster general 

elections. 

The national spending limit applying to Westminster general elections should be 

reduced following the next Westminster general election. 

We also recommend that candidates’ spending limits be raised to enable more activity 

at the local level. 11 

Elsewhere in its report, it acknowledged that there had not yet been a full 365-day regulated 

period. However, it outlined how it would like its recommendation to be implemented: 

… our preferred option would be to reduce the national spending limit from £20m to 

£15m – or from £30,000 to around £23,000 per constituency – and increase 

11 

http://www.electoralcommission.org.uk/files/dms/Election2001Campaignspendingfinalpdf_7546- 

6677__E__N__S__W__.pdf 

Electoral Commission, The funding of political parties, December 2004, p61, 

http://www.electoralcommission.org.uk/files/dms/partyfundingFINALproofs_15301- 

11394__E__N__S__W__.pdf 

7

candidate-spending limits by a proportionate amount. This would effectively almost 

double the limit for candidates’ election expenses. 12 

Appendix: Changes in candidates’ expenses limits 

Effective date Borough constituency County constituency 

Basic (£) Per elector (p) Basic (£) Per elector (p) 

1983 (1) 2,700 2.3 2,700 3.1 

1986 (2) 3,240 2.8 3,240 3.7 

1987 (3) 3,370 2.9 3,370 3.8 

1989 (4) 3,648 3.1 3,648 4.1 

1991 (5) 4,144 3.5 4,144 4.7 

1992 (6) 4,330 3.7 4,330 4.9 

1994 (7) 4,642 3.9 4,642 5.2 

1997 (8) 4,965 4.2 4,965 5.6 

2001 (9) 5,483 4.6 5,483 6.2 

2005 (10) 7,150 5.0 7,150 7.0 

(1) Representation of the People Act 1983, s76 

(2) The Representation of the People (Variation of Limits of Candidates' Election Expenses) Order 1986 (SI 

1986/383) 


1987/903) 


1989/634) 


1991/951) 


1992/706) 


1994/747) 


1997/879) 


2001/535) 


2005/269) 13 

12 

13 

Ibid, para 4.49 

Available on the Stationery Office’s website: http://www.legislation.hmso.gov.uk/si/si2005/20050269.htm 

8

Elections expense limits - Parliament

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