SPGB Financial scheme

Contents

Introduction by the Party Treasurer
Financial scheme
The structure and organisation of the Party

Introduction

What has the law got to do with political activity?

If you are a member or supporter of the Socialist Party, we want to encourage you to do all you can to promote the Party and its objectives.

However, there are some legal requirements which you need to be aware of to make sure you don’t risk getting the Party or yourself in trouble. For most members or supporters, these are fairly simple and straightforward. See “What all members and supporters need to know”, below.

If you do or might take on an official Party role (locally or nationally), you will need to know a bit more, so please make sure you check the sources of guidance given if its relevant to your activities. You may get asked by other members or supporters what they should or should not do, so you need to be able to provide the right advice or to refer them to who else can. You also need to be aware of the internal rules and procedures in the Party. You should get advice from your Branch secretary or if you take on a role with the Central Party, follow guidance given or contact the General Secretary at spgb.gensec@worldsocialism.org.

You may see references on this page or elsewhere to registration or registered officers, a “Financial Scheme” and a “Constitution”. This is because the Socialist Party is officially registered as a political party to contest elections in Great Britain and as such must have certain documents which are show how it meets the requirements of Party registration. On this page the “Financial Scheme” is most relevant, so a copy is provided below.

You may also see references to “Spintcom Files”, which is an online source of information, which members (only) can access by sending an email to: spintcom+subscribe@groups.io.

Members who are either registered as an officer with the Electoral Commission or elected to the Executive Committee need to know in far greater detail the responsibilities of being a Registered Officer and the requirements of the Party to submit reports to the Electoral Commission on a regular basis and during and following certain election campaigns. Arrangements for the registration of officers with the Electoral Commission are set out in ‘The Structure and Organisation of the Party’ (a statement by the Executive Committee), which appears at the end of this page. Further arrangements to appoint or replace such officers and for the EC to receive a monthly report on returns due to the Commission are set out in the current ‘Standing Orders’ of the EC (agreed by it annually).

The Commission also provides detailed guidance on all these matters on its website:
https://www.electoralcommission.org.uk/

What all members and supporters need to know

• If you produce any material on behalf of the Party and/or an election candidate (printed or digital, including text, video or audio) it may need to contain what is known as an “imprint”. This is a message which helps to ensure there is transparency about who made it. If you intend to do so or are asked to do this by the Party or a Party official, ask them what type of imprint is needed or read the ‘Policy statement on the use of Imprints on Socialist Party campaign materials’ available on Spintcom Files here
• If you produce any material or organise any activities which might influence how people vote, or to support or oppose any election candidate or referendum campaign: Please be aware there are rules about what can be spent by who and when, who needs to authorise or know about the spending and what information must be included. Please follow any guidance given by the Party about the specific electoral event or check first by asking the Party Election Committee (email spgb.elections@worldsocialism.org), the Electoral Commission (at https://www.electoralcommission.org.uk/ or contact them by phone on 0333 103 1928) or the Elections Team at the local authority (Council) organising elections locally.
• Donations to the Party or Candidates. We welcome donations which help us fund activities and spread socialist ideas. However, there are rules about who can make donations, how much can be accepted and by who and requirements to record them and Branch officers need to be aware of these. Before you accept a donation on behalf of the Party or an election candidate (centrally or locally) you should check with your Branch Secretary or contact the Party Treasurer (email spgb.treasurer@worldsocialism.org) or the Election Committee (email spgb.elections@worldsocialism.org). Donations include money and items provided free of charge or at a discount, or on loan.
• Election or referendum campaign rules. If you are to be a candidate in an election or to help organise any activity or materials that promote a party or candidate in an election you need it be aware that there are certain legal requirements which may apply to the Party generally or certain persons taking part in electoral activity. These requirements may be different depending on the type of election, where it is held and when it is held. For all elections there are period of time known as a “regulated period”. This covers when certain rules apply, for instance on how much money can be spent to promote the party or a candidate. The period may start a few weeks or even a year before the date of the election, depending on the circumstances.For information ask your Branch Secretary and/or the local Party candidate(s) or their appointed agents, who are also responsible for this locally. You could also contact the Party Treasurer (email spgb.treasurer@worldsocialism.org) or the Election Committee (email spgb.elections@worldsocialism.org). Information is also available from the Electoral Commission (at https://www.electoralcommission.org.uk/ or contact by phone on 0333 103 1928) or the Elections Team at the local authority (Council) organising elections locally.

Robert Cox
Party Treasurer

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Financial Scheme
The Socialist Party of Great Britain

Agreed by the Executive Committee of The Socialist Party of Great Britain*

Introduction

1.1 This scheme sets out how The Socialist Party of Great Britain (‘the party’) will organise its financial affairs to comply with the Political Parties, Elections and Referendums Act 2000 (‘the Act’).

Constitution

1.2 A copy of The Socialist Party of Great Britain’s rules (constitution), setting out our structure and organisation, and how we take decisions about the management of the party, is attached to this scheme or has been provided separately to the Electoral Commission.

Accounting units

1.3 The Socialist Party of Great Britain does not wish to register any separate accounting units with the Commission.

Organisations within the party

1.4 For the purpose of compliance with the Act, the financial affairs of any local branches or affiliated organisations of the party, whether currently existing or to be established in future, will be wholly controlled by the party treasurer.

Financial year

1.5 The party’s financial year will run from 1 January to 31 December.

Role of the party treasurer

1.6 The registered treasurer of The Socialist Party of Great Britain is responsible for the whole party’s compliance with the requirements of the Act, including the following:

Annual accounts

1.7 The Socialist Party of Great Britain will submit our annual statement of accounts to the Commission by the required date, being 30 April of the year following the end of the financial year if both our expenditure and income are under £250,000 in that year, or 7 July of the year following the end of our financial year if either our expenditure or income exceeds £250,000 in that year. We understand that if our income or expenditure exceeds £250,000 our accounts must be submitted with an auditor’s certificate.

1.8 In order to comply with this requirement, the registered treasurer of The Socialist Party of Great Britain has:

• put in place arrangements for ensuring that annual statements of accounts for the party are prepared, approved, audited where necessary and submitted to the Commission by the prescribed deadline for each register the party is on
• put in place accounting processes capable of meeting the Act’s accounting record keeping requirements and of any regulations made by the Commission about the format of statements of accounts

Donations and Loans (regulated transactions)

1.9 Socialist Party of Great Britain will report the donations and loans it receives each quarter to the Commission, for each of the registers it is registered on, within the following timescales:

• quarter 1 (1 January – 31 March) by 30 April of that year
• quarter 2 (1 April – 30 June) by 30 July of that year
• quarter 3 (1 July – 30 September) by 30 October of that year
• quarter 4 (1 October – 31 December) by 30 January of the following year

1.10 In order to comply with this requirement, the registered treasurer of The Socialist Party of Great Britain will:

For donations:

• record information for all donations of more than £500, including:
  • amount or value of the donation
  • full name of donor
  • registered address of donor
  • company registration number (if applicable)
  • date on which the donation was received
  • date on which the donation was accepted or returned
  • information about the trust (if applicable)
• check the permissibility of any donations over £500 within 30 days of receipt
• ensure that impermissible or unidentifiable donations of more than £500 to the party are recorded as outlined above and returned to the sender or financial institution that transferred the money or, if that is not possible, surrendered to the Commission
• ensure that a submission of quarterly donation reports covering donations exceeding £11,180 (including aggregates of donations and regulated transactions) and any impermissible or anonymous donations of more than £500 is made to the Commission within the above timescales; submitting a nil return if there are no reportable donations
• provide weekly donation reports to the Commission during UK Parliamentary election campaigns if we are contesting the election

1.11 We understand that if we submit four consecutive quarterly nil donation returns, we will then be exempt from submitting further quarterly returns in respect of donations until we receive a reportable donation.

1.12 We also understand that separate quarterly donation returns must be submitted if we appear on the Northern Ireland register of political parties.

For loans (regulated transactions):

• record information about all regulated transactions (loans, credit facilities, etc.) of more than £500, including:
  • value of benefit of the transaction
  • name of all authorised participants
  • registered addresses of participants
  • company registration number (if applicable)
  • nature of the transaction
  • date agreement entered
  • the terms of the transaction
• ensure that the party does not enter into any regulated transactions over £500 with unauthorised participants
• ensure that a submission of quarterly transaction reports covering transactions exceeding £11,180 (including aggregates of donations and regulated transactions) and any void transactions or transactions of more than £500 entered into with an unauthorised participant is made to the Commission within the prescribed timescales; submit a nil return if there are no reportable transactions
• ensure weekly regulated transaction reports can be submitted during UK Parliamentary election periods if we are contesting the election

1.13 We understand that if the party has submitted four consecutive quarterly nil loans returns, we will then be exempt from submitting further quarterly returns until we enter into a reportable loan.

1.14 We also understand that separate quarterly loan returns must be submitted if we appear on the Northern Ireland register of political parties.

Campaign expenditure

1.15 The party will submit a campaign expenditure return if we have candidates contesting a UK Parliamentary election, European election, Scottish Parliamentary election, National Assembly of Wales election, or Northern Ireland Assembly election. The campaign expenditure return will be submitted within three months of the date of the election if our expenditure is less than £250,000 or within six months of the date of the election if our expenditure exceeds £250,000. We note that if our expenditure during the campaign exceeds £250,000 our return must be submitted with an auditor’s certificate.

1.16 In order to ensure compliance with the legislation, the registered treasurer of The Socialist Party of Great Britain will:

• ensure that campaign expenditure and claims payments are duly authorised, received and paid on time and that all relevant receipts and invoices are kept
• put in place budgeting and monitoring arrangements to ensure that campaign expenditure is within the statutory limits
• ensure the compilation, auditing (if necessary) and timely submission to the Commission of a campaign expenditure return within the statutory deadlines

Referendums

1.17 If the party participates in a referendum to which Part VII of the Act applies, The Socialist Party of Great Britain will develop and put in place arrangements for complying with the controls on referendum expenditure. We will do this by adapting our arrangements for the control of campaign expenditure.

Grants

1.18 The Socialist Party of Great Britain will ensure that any grants from the Commission to the party are spent in accordance with the conditions of grant imposed by the Commission. We agree to cooperate with any associated audit requirements specified by the Commission.

Changes to registered details

1.19 The Socialist Party of Great Britain will ensure that the party’s details that are registered with the Commission are kept up to date. We will inform the Commission of any changes to registered officers within 14 days of the change and any other changes within 28 days.

1.20 We will ensure that our RP8 annual confirmation of registered details and £25 fee are submitted to the Commission with the annual statement of accounts by 30 April of the following year (if our expenditure or income is less than £250,000) or by 7 July of the following year (if our expenditure or income exceeds £250,000).

1.21 We note that failure to submit our RP8 annual confirmation of registered details within the prescribed timescale will result in our statutory removal from the register of political parties. We understand that this would mean that the party would no longer be able to field candidates at elections under the party name.

Penalties and offences

1.22 The Socialist Party of Great Britain understands that the Commission may impose civil penalties on parties that fail to comply with their legal obligations, including failures to submit statutory returns on time. The party also understands that failure to comply with certain legal requirements of being a registered political party is a criminal offence.

Role of other party officers

1.23 Should the appointment of the registered party treasurer terminate for any reason, then the registered party leader will, until a new treasurer is appointed, be treated as the party treasurer and will be responsible for ensuring that the party complies with its legal obligations.

1.24 Should the treasurer whose appointment is terminated also be party leader, then the nominating officer will, until a new treasurer is appointed, be treated as the party treasurer.

1.25 Should the treasurer whose appointment is terminated also be party leader and nominating officer, then the other registered officer will, until a new treasurer is appointed, be treated as the party treasurer.

Promoting compliance with the Act

1.26 The Party will have processes in place to ensure compliance with its legal obligations. The registered treasurer will provide written guidance in order that the registered leader and all other officers and members of The Socialist Party of Great Britain have sufficient knowledge of our financial obligations under the Act to ensure that the party as a whole complies with these obligations.

Amendments to the financial scheme

1.27 The registered treasurer will ensure that any proposed amendments to this financial scheme are submitted to the Commission for approval.

*This document reflects changes in certain financial reporting thresholds notified by The Electoral Commission with effect from 1st January 2024

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The structure and organisation of the Party

A statement by the Executive Committee

The Socialist Party of Great Britain (‘the Party’) does not have a written constitution. Instead, there is a set of rules which determines the structure and organisation of the Party.

A copy of the current rules (last amended in the year 2022) is appended to this statement.

These rules (Rule 1) require that all applicants for membership sign up to its object and principles. These key texts are also appended, and date from the formation of the party in the year 1904.

Important decisions in the Party are taken by a ballot of the entire membership, either on a resolution first submitted for discussion by delegates to a conference of the Party (under Rules 20 to 23) or where a poll of the Party has been requested (under Rule 26). This would include any amendment of the Party rules (see Rule 21) or any other fundamental decision, such as the dissolution of the Party (presumably once our object has been achieved).

The day-to-day administration of the Party is undertaken by the Officers and the Executive Committee, elected by the membership on an annual basis (Rule 12 and 19). These officers include a General Secretary, Assistant Secretary, Treasurer and Assistant Treasurer.

The Party has been registered as a political party to contest elections in Great Britain since the year 1999. The Executive Committee accepts responsibility, in accordance with the Political Parties, Elections and Referendums Act 2000, for ensuring that at least the minimum required number of officers are registered with the Electoral Commission.

In accordance with its current registration status its registered officers and the arrangements for their appointment are as follows:

1) Party ‘leader’
No position of Leader will be found in the Party rules. The Party is made up of people who have joined together because we want to get rid of the profit system and establish what we see as real socialism. Our aim is to persuade others to become socialist and act for themselves, organising democratically and without leaders, to bring about the kind of society that we advocate. Therefore, the Party has no need for a ‘leader’ as part of its structure.

However, the Party has agreed to select a member to be registered as ‘leader’ solely to meet the requirements and functions of party registration and for no other purpose. The Party has agreed that a member willing to take on the role be chosen at random, each five years by delegates sitting at an annual party conference.

Should a vacancy for ‘leader’ occur between conferences, the Executive Committee (at a special meeting if deemed necessary) shall select and submit notification to the Electoral Commission within 14 days of a replacement, to serve as ‘leader’ until the following Conference is held.

2) Party Treasurer
At its first meeting following the annual re-election of Party Officers, the Executive Committee shall ask the newly elected Treasurer to accept (or continue) their registration as treasurer with the Electoral Commission. The Executive Committee will ensure the Electoral Commission is notified of any resulting change of registered treasurer within 14 days. The Committee is aware that in the event of the registered treasurer leaving their post (at any time and for any reason) before a successor is confirmed, the registered ‘leader’ must then become the interim registered treasurer. In consultation with the registered ‘leader’, a timetable will be agreed by the Executive Committee (at a special meeting if deemed necessary) for the replacement of the registered treasurer.

3) Nominating Officer and other officers
The Executive Committee shall take responsibility for appointing or replacing, as and when necessary, the Nominating Officer and ensuring that the Electoral Commission is notified of any change within 14 days. Should the Party decide or be required to register any additional allowable officer(s), the Executive Committee (or a person delegated on its behalf) shall appoint them in the same method as the Nominating Officer and ensure any appointments or changes of such are reported as required by the Electoral Commission.

6^th April 2024

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