Why do you have to lie on the form? That shouldn't be necessary. If there are untrue statements pre-printed on the form, I'd just cross them out and correct them (although there is a small risk that you might lose your application fee).
As for the rest, I'd suggest that your best course of action would be to complain to your MP (http://www.writetothem.com
). It's doubtful that your MP will do anything about it, but MPs and Lords are the only people that can. You might also consider raising the issue on the government's consultation website at http://yourfreedom.hmg.gov.uk