Monday, October 27, 2025
Concern about political donors getting government contracts
The paper says that a report by the thinktank Autonomy Institute has identified more than 100 companies that have given money to political parties and then won government contracts, under both Conservative and Labour administrations:
The study follows a previous investigation by the Guardian that revealed how companies linked to Tory donors had been given billions in public funds since 2016.
The new analysis shows the pattern has continued under Labour, with eight companies that donated more than £580,000 to the party receiving government contracts worth nearly £138m within two years of their donation (between July 2024 and June 2025).
Looking beyond a two-year window, the thinktank found 25 Labour-linked companies had won contracts worth £796.43m since 2001.
Dr Susan Hawley, the executive director of Spotlight on Corruption said: “There is nothing more damaging to public trust than the perception that those with privileged access to those in power get privileged access to taxpayer-funded contracts.
“These findings show a systemic problem with the UK’s absurdly weak handling of conflicts of interest. It must lead to systemic solutions which include screening out political donors and their companies from the procurement process, and real consideration of a ban on company directors or their companies that receive public contracts from making political donations.”
The Autonomy Institute identified a total of 125 companies that were awarded central government contracts worth £28.8bn after previously making £30.15m of donations to a political party. About £2.5bn worth of those contracts were awarded within two years of the donation.
They include the consultancy firm Baringa Partners, which donated £30,061.50 to Labour in January 2024 and received £35,196,719 worth of government contracts between July 2024 and March this year. Grant Thornton donated £81,658.37 between March 2023 and July 2024 and has since been awarded £6,541,819 in contracts.
However, the vast bulk of the contracts – £25.4bn – were awarded under previous Conservative governments to Conservative donors. They include Randox Laboratories and Globus Shetland, both of which were offered contracts during the Covid pandemic.
A Conservative spokesperson said the party was funded by membership, fundraising and donations declared to the Electoral Commission and fully compliant with the law. They said the alternative “would be more taxpayer funding or being in the pocket of union barons like the current government”.
They added: “As the National Audit Office and Cabinet Office internal audit made clear, ministers properly declared their interest and had no involvement in procurement decisions. Donations have never had any bearing on government contracts.”
A government spokesperson said: “All government contracts are awarded fairly and transparently, in line with the Public Contracts Regulations 2015. All decisions on contracts are rigorously scrutinised to deliver the best value for the taxpayer.”
There is no suggestion of anything untoward here, but appearances are important and if we are not going to replace political donationsw with public funding then the proposals being put forward by Dr Susan Hawley should at least be given serious consideration.
