‘Ashcroft loophole’ reform blow

The Electoral Commission has "strong reservations" about Government plans to close the so-called 'Ashcroft loophole' under which the Conservatives have been able to spend large amounts on publicity in marginal seats. Spending by a party during an election campaign is strictly limited, averaging about £11,000 per constituency, but outside of an election period there is nothing to control the amount.

The most famous exploiter of this loophole is Lord Ashcroft, the Conservative deputy chairman, who has allocated £2m for 50 Tory MPs in marginal seats, and claims the tactic "levels the playing field". In Harlow in Essex, Electoral Commission figures show that the Tories spent £143,000 while the local Labour party received only £14,000.

Justice secretary Jack Straw has proposed a reform that would cap party spending at £12,000 per candidate for a whole parliament, not just an election period. However, a leaked document from the Electoral Commission now reveals that the watchdog thinks the new legislation has "problems in terms of uncertainty and scope for avoidance".