All government grant agreements will now include a clause which prevents government funding from being used to lobby for new regulation or to lobby for more government funding. The government argues that freedom of speech will be protected as the clause will not prevent charities from using money from other sources to lobby the government.
The wording to be inserted into all new and renewed grant agreements signed after 1 May 2016 is as follows:
'The following costs are not Eligible Expenditure: Payments that support activity intended to influence or attempt to influence Parliament, government or political parties, or attempting to influence the awarding or renewal of contracts and grants, or attempting to influence legislative or regulatory action'.
The Cabinet Office has published interim guidance on how these new rules should be implemented which is available here.