Labour boosts election war chest raising £7.5m from business charm offensive
Labour has enjoyed a boost to its books from top business leaders as accounts revealed the party took almost £7.5m in donations during the second quarter of 2023.
Sir Keir Starmer’s party accumulated £10,435,900.07 between April and June this year, according to figures released today by the Electoral Commission, which keeps track of political parties’ spending and finances. While the Conservatives fell behind, bringing in £10,020,040.11, per the official release.
This figure includes both donations – which stood at £9,853,327 for the Tories and £7,498,877 for Labour – in addition to public funds.
As the official opposition, Labour receives ‘short money’ from the House of Commons to fund its role, and during the second quarter this came to £2,937,023. While the Tories got £160,748 in public funds.
It comes after top business figures announced they were making major contributions to the official opposition amid a shifting mood across Westminster and the Square Mile as Labour enjoys a healthy lead in the polls.
Ahead of a general election expected in either May or autumn 2024, supermarket tycoon Lord Sainsbury and former Autoglass boss Gary Lubner gave £3m and £2m respectively.
Health entrepreneur Frank Hester gave £5m to the Conservatives, as reported this week.
One Labour source told City A.M.: “Donors who might instinctively back Labour will start doing so when the party looks like a decent horse – and the same in reverse for the Conservatives.
“We certainly see that there are a lot of people who are interested in what Labour are going to do and want to be a part of the conversation.”
Shadow Chancellor Rachel Reeves and Starmer have been stepping up efforts to woo the City, continuing their circuit of high powered business breakfasts, dubbed the ‘scrambled eggs and smoked salmon offensive’.
While top FTSE firms Pricewaterhouse Cooper and Ernst and Young both spent around £24,000 to £32,000 on staff costs, covering secondments to the party HQ.
“I think [this] shows there is a much better relationship between Labour and the business world than there was previously,” the Labour source added.
“People are coming in with government or very senior corporate experience and bringing a new professionalism to what Labour is doing.”
The figures come during a week which saw the party carry out a smooth reshuffle of its shadow frontbench and former civil servant and Partygate invigilator Sue Gray join Labour HQ as Starmer’s chief of staff.
A party spokesperson said: “Thanks to Keir Starmer’s leadership, the Labour Party saw significant financial growth throughout 2022, and our finances have gone from strength to strength this year as we set out our five missions to transform Britain.
“The Labour Party is a changed party that is serious about getting into government and building a better Britain.”
Louise Edwards, regulation director at the Electoral Commission, said:“We know voters are interested in where political parties get their money from, and this is an important part of delivering transparency.
“We continue to recommend to the UK government that it introduces laws to help protect parties from those who seek to evade the law and give voters more confidence in the process.”
The Conservative Party have been approached for comment.