Democracy in Britain took a huge step backwards today as the government pushed through its right-wing Lobbying Act.

Rights activists lined up to slam the Act, which imposes draconian limits on the activities of organisations such as trade unions, charities and anti-racism campaigners in the run-up to the general election next May.

It will also slash the amount organisations can spend on initiatives such as newspaper advertising.

The Act will demand that organisations account for every penny spent — right down to postage.

But it places no restrictions on the amount of election propaganda newspapers can publish themselves — allowing the Tory-dominated newspaper industry unlimited freedom to manipulate voters.

Nor does it limit political parties’ election spending — meaning the Tories can spend as many millions as their big-business supporters pump into their coffers.

Public service union Unison general secretary Dave Prentis said: “This pernicious law — introduced as a direct response to a Tory MP taking cash for favours — attacks our right to speak up on behalf of our members.

“It’s cynical, mean and vindictive. Trade unions have always been transparent and truthful about their activities and are already the most over-regulated organisations in the country.

“And it’s not just unions who are caught in the net, but charities and voluntary organisations who are seeking to make lives better for the majority.”

The Hope Not Hate campaign, which has played a leading role in defeating racists, fascists and other far-right bigots who stand for election, warned the Act would cut its spending by 70 per cent as the election approaches.

Director Nick Lowles slammed it as “stupid and undemocratic.”

The Act was originally drawn up to control lobbying of governments by vested interests, following a “cash-for-favours” scandal involving a Tory MP.

But the coalition government has been accused of manipulating the act to gag opponents and stifle dissent in the nine months before the general election.

Unite general secretary Len McCluskey said: “This is nothing short of gagging democracy in the run-up to next year’s general election.” 

But he said Unite will not be silenced.

“If the government pushes us outside the law, as it seeks to advance the interest of the few over the many, then it will have to suffer the consequences,” he said.

General union GMB political officer Lisa Johnson said: “With the track record of the government on the economy and living standards and with a general election round the corner it is clear that they want to gag unions and charities too.

“It is a shameful that Parliament allowed this legislation onto the statue book.

“This shoddy and completely impractical Bill allows Tory donors and the politically motivated right-wing press to run rough shod over our democracy.”