Comparing campaign and party finance

  • Most obvious similarity: elections cost money everywhere
  • An assumption that to stand a chance of victory, a party/candidate needs to match (if not exceed) spending of its opponents
    • Especially in swing states
  • Where there is money raised there is influence gained
  • Party Funding in the UK

Structural

Campaign expenditure caps

  • 2024 UK: national parties limited to ~£54k per candidate standing

  • caps legally allowed total to just over £34m

  • Clear limits on campaign spending by individual candidates leading to a general election

  • Names of all donors giving over £10k must be made public

  • Electoral Commission issues fines for breaches

    • Feb 2020, Plaid Cymru fined over £29k for breaching transparency rules
  • US: party finance rules much more complex

    • Legislation such as Bipartisan Campaign Reform Act 2002 watered down by court rulings such as Citizens United and SpeechNow
  • Rules that limit direct donations to parties and candidates (hard money)

  • Few effective rules to restrict indrect or independent expenditure (soft money)

    • PACs + super PACs
  • No limit on expenditure from candidate’s personal wealth (self-funding)

  • Differences reflect the structural notions of sovereignty

    • any changes to US electoral law must be constitutinoal
    • any changes to UK electoral law can be passed by statute law (Parliamentary sovereignty)

State funding of campaigns

  • UK: Far more is done by the government neutrally
    • voter registration undertaken centrally by government
  • US: lots of energy and cash spent on registration drives
    • especially Dem seeking to ensure that minority groups are registered
  • Candidates in UK elections legally entitled to free postage of one piece of election literature

Pressure groups

  • PGs much more tightly regulated by the Charity Commission in their poltiical activities, especially during election times
    • Charity Commission: “A charity cannot have a political purpose. Nor can a charity undertake political activity that is not relevant to, and dos not have a reasonable likelihood of, supporting the charity’s charitable purposes.”
    • UK charities cannot openly support or donate to parties/candidates
  • US: PGs can donate, endorse, campaign for candidates using PACs
  • UK: Communications Act 2003 - television airtime cannot be purchased for political ads
    • major parties alloacted free slots for party election broadcasts
  • US: candidates, parties, Super PACs spent over $12.3b on ads during 2024 election
UKUSA
Main lawsPolitical Parties, Elections and Referendums Act (PPERA) 2000, Communications Act 2003, Charity Act 2011Federal Election Campaign Act 1971, Bipartisan Campaign Reform Act (McCain-Feingold) 2002
Landmark court casesNoneMcConnell v. Federal Election Commission (2003), Citizens United v. Federal Election Commission (2010), Arizona Free Enterprise Club’s Freedom Club PAC v. Bennett (2011)
Restrictions on fundraising and expenditureNo limits on fundraising outside election timesLimits on direct donations to parties and candidates
Limits on national and candidate spending in period before electionsNo restrictions on self funding by candidates
Large donors must have names publishedNo limits on independent expenditure by Super PACs