Chloe Smith, minister for political and constitutional reform, who is leading on the government’s lobbying bill, has accused campaign group 38 Degrees of “scaremongering”, after it said it faces its “biggest ever threat”, from the bill.

Meanwhile, the Electoral Commission will this week brief MPs about the concerns it has with the new bill and its effect on charities. 

The Electoral Commission joins a long list of organisations who have voiced concerns about the Transparency of Lobbying Non-Party Campaigning and Trade Union Administration Bill in the past week. They warn it could hugely impact the future of campaigning.

NCVO’s policy officer, Elizabeth Chamberlain, has warned that the bill’s definition of election campaigning is so wide that ordinary charity activities could be caught. An NCVO-led coalition of charities have written to Chloe Smith warning that charities could be “collateral damage” of the bill. Campaign body 38 Degrees has said the bill will gag it and has called on its supporters to write to Chloe Smith.

Smith: charities still able to support to specific policies advocated by political parties

In response, Smith has written to 38 Degrees, accusing it of “scaremongering”:

“The government does not intend or expect the legislation to threaten the future of 38 Degrees,” she says. “To suggest otherwise is nothing more than scaremongering and does nothing to help sensible political debate.”

Smith added that only campaigning by third parties “which promotes or procures success or otherwise enhances the standing of parties or candidates”, would be regulated.

Smith also promised that charities will still be able to give support to specific policies advocated by political parties if it would help achieve their charitable purposes.

“I hope this reassures 38 Degrees and your supporters that third-party campaigning only on policy issues would continue to be exempt.”

Charities consulting lawyers

However charities are still concerned. NCVO has instructed a QC to provide advice on the proposed rules which it fears could catch out charities and community groups campaigning on bipartisan issues in the lead-up to an election.

Sir Stephen Bubb, chief executive of Acevo, has said in his blog that though government has said that the bill does not intend to obstruct charities in the pursuit of their objectives, “lawyers tell us differently”.

He adds: “I suspect some of those behind this bill do realise the effects and intend them.”

Labour has also criticised the bill, with shadow leader of the House, Angela Eagle, saying government plans to “gag charities and campaigners in the run-up to the election”:

“The government needs urgently to rethink their plans…..If they don’t, it will be clear that this is a sinister attempt to insulate their record and their policies from legitimate, democratic criticism," she said.

“I’ve heard deeply troubling reports from charities and campaigners over the last few weeks – this bill could force them out of public debate.”

However, Tom Brake, deputy leader of the House of Commons, said the bill’s effect and intent has been exaggerated.

“What the relevant section of the bill is designed to do is stop our political system going the way of America’s – where wealthy and unaccountable millionaires can spend small fortunes, outside the formal political parties, trying to deliver specific electoral outcomes through so-called “Super-PACs” and alike - something I would have thought 38 Degrees and their email list would want to support,” he says.

The bill proposes to make it a criminal offence to spend more than £390,000 on campaigns that affect European, national and local elections. It also proposes requiring anyone spending more than £5,000 on campaigning activity to register with the Electoral Commission.

Brake says the bill is designed to restrict those who are trying to influence the electoral outcome by supporting or encouraging support for a party or candidate. “It is absolutely not going to restrict charities or campaign groups campaigning to change public policy,” he insists.

“I make no apology for a bill that seeks to prevent big, opaque and unaccountable money wielding undue influence over our political system.”

Electoral Commission to brief MPs

However, the Electoral Commission, which would be responsible for interpreting and enforcing the new law, is also unhappy about the bill.

It told The Independent: “We have some significant concerns over the way the Bill has been drafted. We will be briefing Parliament on these as soon as MPs return. Over the past few weeks, we have been talking to charities and organisations that could be affected by these rules. This will inform our evidence.”

In a briefing, the Electoral Commission says the rules on campaign spending could be "unenforceable" because it would be hard to know when they would apply.

The bill will have its second reading in the House of Commons next week.