News releases

The Electoral Commission announced today that it will be taking legal action to require the
UK Independence Party to forfeit £367,697 of impermissible donations.

The Commission will also fine the party £1,000 for the unacceptably late filing of its 2005 annual statement of accounts - nearly six months after an already extended deadline. The partys South East accounting unit will also be fined £500 for filing its accounts more than six months late.

Under Section 54(1) of the Political Parties, Elections and Referendums Act 2000 (PPERA), registered political parties must not accept a donation from a person who, at the time the donation was made, was an impermissible donor. Parties have 30 days from the date the donation was received to return the money to the donor.

Political parties are also required by law to prepare and file an annual statement of accounts with the Electoral Commission. If these are submitted late, the Commission has the power to impose civil penalties under Section S147(1)(b) of PPERA.

The Commission is launching a full review of the UK Independence Partys systems for dealing with its financial affairs and meeting statutory reporting requirements.

Following a separate decision, the Commission will also be taking legal action to require the Socialist Labour Party to forfeit impermissible donations totalling £5,090.

Ends

Notes to Editors

1.  The Political Parties Elections and Referendums Act (PPERA) 2000 established the Electoral Commission as an independent body to regulate political party financing and provided the legal framework under which the Commission operates.

2.  Section 54(2) of PPERA defines permissible donors to registered political parties as:

• an individual registered on a UK electoral register
• a UK registered political party
• a UK registered company
• a UK registered trade union
• a UK registered building society
• a UK registered limited liability partnership
• a UK registered friendly/building society
• a UK based unincorporated association
  
  

These requirements must be satisfied at the time the donation is made and the onus is on the party to check whether this is the case and return the money if necessary.

3.  Under section 58 of PPERA, the Electoral Commission has the power to apply to the courts for an order to forfeit a sum equal to any impermissible donation a party has accepted and not returned within the statutory 30 days.

4.  Any amount forfeited would be paid into the Governments Consolidated Fund.

5.  Section 147 of PPERA states that civil penalties can be applied if parties fail to deliver returns or notifications to the Commission within the prescribed timescales.

6.     Section 147(3) provides an increasing scale of fines depending on the period between the date the return or notification is due and the date that it is actually submitted and provides an increasing scale of fines: