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England and Wales Court of Appeal (Civil Division) Decisions |
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You are here: BAILII >> Databases >> England and Wales Court of Appeal (Civil Division) Decisions >> Vote Leave Ltd v The Electoral Commission [2019] EWCA Civ 1938 (12 November 2019) URL: http://www.bailii.org/ew/cases/EWCA/Civ/2019/1938.html Cite as: [2019] WLR(D) 625, [2019] 4 WLR 157, [2019] EWCA Civ 1938 |
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ON APPEAL FROM the High Court (Queen's Bench Division)
Administrative Court
Mr Justice Swift
Strand, London, WC2A 2LL |
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B e f o r e :
(Vice-President of the Court of Appeal (Civil Division))
LORD JUSTICE SINGH
and
LADY JUSTICE NICOLA DAVIES
____________________
VOTE LEAVE LTD |
Appellant |
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- and - |
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THE ELECTORAL COMMISSION |
Respondent |
____________________
Mr Philip Coppel QC and Mr Ravi Mehta (instructed by the Treasury Solicitor) for the Respondent
Hearing date: 3rd October 2019
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Crown Copyright ©
Lord Justice Underhill:
INTRODUCTORY
(1) A person who is fined by the Commission under the provisions in question has a right to appeal to the County Court. Originally, both VL and Mr Grimes appealed against the fines imposed on them, and the two appeals were directed to be managed together. On 29 March 2019 VL discontinued its appeal, but Mr Grimes proceeded. By a decision dated 19 July HH Judge Dight CBE, sitting in the Central London County Court (Mayor's and City of London), allowed Mr Grimes's appeal on a particular basis which I need not explain save to say that it depended on the procedural consequences of the precise formal relationship between him and BeLeave.
(2) Secondly, in 2017 the Commission decided not to investigate whether payments made by VL to BeLeave, from which AIQ's bills were paid, were in breach of the applicable limits on VL's campaign spending. A challenge to the lawfulness of that decision was upheld by the Divisional Court in March 2018, but on appeal its decision was set aside by this Court: see R (Good Law Project) v The Electoral Commission [2019] EWCA Civ 1567.
Mr Straker appeared at some points in his submissions to be suggesting that those two decisions called into question the basis of the Commission's decision to fine VL. Mr Coppel disputed that, pointing out that both appeals were decided on grounds which had no application to the basis on which the fines with which we are concerned were imposed. So far as I can see, that is correct, but it is unnecessary to consider the point because the correctness of the decision to fine VL is not material to the issue before us: that issue is limited to whether the publication of the Report relating to that decision was within the Commission's statutory powers.
THE STATUTORY BACKGROUND
"The Commission may do anything (except borrow money) which is calculated to facilitate, or is incidental or conducive to, the carrying out of any of their functions."
That language is substantially the same (apart from the prohibition on the borrowing of money) as the well-known terms of section 111 (1) of the Local Government Act 1972, which empowers local authorities "to do any thing … which is calculated to facilitate, or is incidental or conducive to, the discharge of any of their functions". That provision codifies what had long been recognised to be the position at common law.
"The Commission must monitor, and take all reasonable steps to secure, compliance with –
(a) the restrictions and other requirements imposed by or by virtue of –
(i) …
(ii) Parts 3 to 7, and
(iii) sections 143 and 148; and
(b) …"
"Schedule 19C makes provision for civil sanctions in relation to–
(a) the commission of offences under this Act;
(b) the contravention of restrictions or requirements imposed by or by virtue of this Act."
It was under the civil sanctions regime established by section 147 and Schedule 19C that the Commission imposed on VL the fines which gave rise to the Report. I need not attempt a full summary of the provisions of the Schedule, but the following points are relevant for our purposes:
(1) The fines were imposed under paragraph 5, which empowers the Commission to impose one or more "discretionary requirements" on a person who it is satisfied beyond reasonable doubt has committed a prescribed offence. Such discretionary requirements include, by sub-paragraph (5) (a), "a requirement to pay a monetary penalty to the Commission of such amount as the Commission may determine", elsewhere referred to as a "variable monetary penalty" – in other words, as I have said, a fine.
(2) Where the Commission proposes to impose a discretionary requirement it is required by paragraph 6 (1) to give notice to that effect (sometimes referred to as an "initial notice") to the person in question, who is entitled (by sub-paragraph (2)) to make written representations and objections in response.
(3) Paragraph 6 (5) provides that where the Commission decides to impose a discretionary requirement it must serve a notice on the person in question specifying the requirement. The notice is the actual instrument by which the requirement – in this case, the fine – is imposed. By paragraph 7 (3) such a notice must:
"... include information as to —
(a) the grounds for imposing the discretionary requirement;
(b) where the discretionary requirement is a variable monetary penalty —
(i) how payment may be made,
(ii) the period within which payment must be made, and
(iii) any early payment discounts or late payment penalties;
(c) rights of appeal;
(d) the consequences of non-compliance."
(4) Paragraph 6 (6)-(7) provides for a right of appeal to (in England and Wales) the County Court.
(5) Paragraph 25 requires the Commission to publish guidance as to, among other things, "the sanctions (including criminal sanctions") that may be imposed on a person who commits an offence under the Act, including guidance about its use of the power to impose discretionary requirements.
THE NOTICES AND THE REPORT
THE ISSUE: DISCUSSION AND CONCLUSION
"... generally speaking, it was open to local authorities to publish information relating to their activities, at any rate within their areas. Had the council issued suspension notices in accordance with section 14 of [the 1987 Act], that fact could (he accepted) have been announced to the public. Had the council initiated any criminal proceedings that fact, and the outcome of such proceedings, could similarly have been announced to the public. Sections 142(2)[1] and 111(1) gave authority to make such announcements if statutory authority was needed[2]."
The release by a local authority of a press release in the circumstances referred to seems to me reasonably analogous to the issue of the Report in this case; and it is accordingly of interest that Mr Fordham acknowledged, and Lord Bingham apparently accepted, that it would fall within the scope of section 111 (1) of the 1972 Act, which is, as noted above, in substantially the same terms as paragraph 2 of Schedule 1 to PPERA.
"The Director General needs no statutory authority to speak and write about his work and about the misdeeds of others with which he is concerned in his work. Both the Director General and his office have full freedom of speech …"
That rather reads as if Donaldson LJ was proceeding on the basis that the power in question derived from the Director General's status as a natural person, in which case it is immaterial for our purposes[3]. But if it was intended as a general proposition about the powers of a statutory corporation, I believe that it should be read as if he had said "the Director General needs no express statutory authority …". It is in my view axiomatic that all the powers of such a corporation must derive from statute, though of course many of those powers may not be conferred express and will be enjoyed only because they are to be regarded as deriving from those functions that are so conferred. I certainly do not believe that the passage can be taken as authority for the proposition being advanced by Mr Coppel. Nor do I see what is gained by advancing the case in this way: paragraph 1 (2) gives the Commission all it needs.
DISPOSAL
Lord Justice Singh:
Lady Justice Nicola Davies:
Note 1 For completeness, I should note that section 142 (2) of the 1972 Act empowers a local authority to arrange for publication of information relating to its functions; but it is Mr Fordham’s reference to section 111 (1) which is relevant for our purposes.
[Back] Note 2 I doubt whether by using the phrase (as recorded) “if statutory authority was needed” Mr Fordham was intending positively to suggest that statutory authority was not needed. But if he was I believe that that would be heterodox: see para. 31 below.
[Back] Note 3 It may also be debatable whether it is correct, but there is no need for us to consider that. [Back]