Conservative Party fined over Newark by-election 2014 election expenses
The Conservative Party has been fined a total of £70,000 by the Electoral Commission over its reporting of election expenses, including on the 2014 Newark by-election.
In January 2016 Channel 4 News made allegations about party spending in South Thanet during the 2015 General Election campaign.
The programme made further allegations about party spending in 2014 by-elections in Newark, Clacton, and Rochester and Strood.
The high-profile Newark by-election was won by Mr Robert Jenrick with a reduced majority of 7,407. He polled 17,435 votes. UKIP candidate Mr Roger Helmer was second with 10,028 votes.
The seat was seen by the Conservatives as a must-win because of the emergence of UKIP as a major political force.
The Electoral Commission was provided with invoices and documents obtained by Channel 4 News that indicated the party had booked 54 nights at the Kelham House hotel between May 1 and June 6, 2014, at a cost of £4,519.95 and 125 nights at the Premier Inn, Newark, between May 19 and June 6 at a cost that was unknown.
Channel 4 News alleged that £10,000-worth of undeclared spending had taken Mr Jenrick over the £100,000 campaign limit.
Mr Jenrick and his election agent Mr Stuart Wallace declared spending of £96,190.98.
Of that £23,596 related to spending on agent and other staff costs and was invoiced by the party.
Mr Jenrick and Mr Wallace at the time denied any wrongdoing.
In a statement issued today a spokesman for the Newark Conservative Association said: "This is a report into the national Conservative party who are co-operating with investigations.
"The local election agent for the Newark by-election fully complied with the law and there have been no suggestions otherwise."
It is common practice amongst all the major parties that they organise their campaigns and then provide a consolidated invoice for that work to the local agent who then reports that sum in the submitted expenses.
The Electoral Commission investigation concluded there were significant failures by the party to report accurately on how much it spent on campaigning at the three by-elections in 2014, and at the 2015 UK Parliamentary General Election.
The party failed to maintain records explaining the amounts it invoiced to candidates in the three by-elections for work on their campaigns.
Therefore the accuracy of the amounts of spending could not be verified.
Fined
The Conservative Party was fined a total of £45,000 in respect of all three by-elections. The fine relating to Newark was the largest at £20,000.
Commenting on the outcome of the investigation, Sir John Holmes, chairman of the Electoral Commission said: “Our investigation uncovered numerous failures by a large, well-resourced and experienced party to ensure that accurate records of spending were maintained and that all of the party’s spending was reported correctly.
"The rules established by Parliament for political parties and their finances are there to ensure transparency and accountability.
"Where the rules are not followed, it undermines voters’ confidence in our democratic processes, which is why political parties need to take their responsibilities under the legislation seriously.
“This is the third investigation we have recently concluded where the largest political parties have failed to report up to six-figure sums following major elections, and have been fined as a result.
"There is a risk that some political parties might come to view the payment of these fines as a cost of doing business; the commission therefore needs to be able to impose sanctions that are proportionate to the levels of spending now routinely handled by parties and campaigners.”
The Conservative Party’s 2015 UK Parliamentary General Election spending return was missing payments worth at least £104,765.
Under the Political Parties, Elections and Referendums Act 2000 (PPERA) it is the responsibility of a political party’s registered treasurer to ensure that an accurate and complete campaign spending return is submitted to the Electoral Commission by the statutory deadline following national elections.
The investigation has now ended and concluded that Mr Simon Day, the registered treasurer of the party until April 2016, committed three contraventions under section 41 and two offences under section 82(4)(b) of PPERA.
The Conservative Party has been fined £70,000 under the Political Parties, Elections and Referendums (Civil Sanctions) Order 2010.
'Failed to ensure that the party’s accounting records were sufficient'
In addition to the fines regarding the by-elections it was fined a further £25,000 in relation to spending during the 2015 General Election.
The Electoral Commission said: "Mr Day, as registered treasurer, failed to ensure that the party’s accounting records were sufficient to adequately show and explain the party’s transactions with the candidates and/or their agents, as required by section 41 of PPERA.
A statement released by Nottinghamshire Police today said: "An investigation into the 2015 General Election expenses returns has now been completed.
"A file has been prepared and been sent to the Crown Prosecution Service for final decision."
The force has not said which constituency or constituencies its investigation relates to.
The Advertiser understands that Nottinghamshire Police has had no contact with Mr Jenrick or Mr Wallace in relation to the 2014 by-election campaign or the 2015 General Election campaign when Mr Jenrick retained the seat with an increased majority of 18,474.
The force did not investigate allegations of overspending by the Conservative Party at the 2014 Newark by-election.
The then Nottinghamshire Police Chief Constable Chris Eyre wrote an open letter to police and crime commissioner Mr Paddy Tipping confirming that no case could be brought.
Mr Eyre said the key offence to consider was whether the party had made a false declaration as to election expenses under the Representation of the People Act 1983.
There is, however, a statutory 12-month limit on bringing prosecutions under the act and, as a result, no action could be taken.
A Conservative Party spokesman said: “The Conservative Party has complied fully with the Electoral Commission’s investigation since it began more than a year ago and will pay the fines they have imposed.
“This is the first time the Conservative Party has been fined for a reporting error.
"We regret that and will continue to keep our internal processes under review to ensure this does not happen again.
"Given the range of technical errors made by a number of political parties and campaign groups, there also needs to be a review of how the Electoral Commission’s processes and requirements could be clarified or improved.”
