The Electoral Commission is the independent body which oversees elections and regulates political finance in the UK. In accordance with the Political Parties, Elections and Referendums Act 2000, the Commission has a range of supervisory and investigatory powers which enable them to monitor compliance with electoral finance laws proactively and enforce suspected offences.
The Electoral Commission has civil sanctioning powers that apply to referendums and elections. More serious criminal matters can be and are referred to the police, and then considered by a court of law. The courts already have the power to levy unlimited fines.
It is important to remember that political parties are voluntary organisations and not large corporate organisations. Disproportionate regulation could discourage volunteering and undermine local democracy. Political parties and referendum participants of all colours have been fined for breaches of technical reporting requirements.
I am assured that the Government will continue to work closely with the Electoral Commission.