Companies that donated to Labour awarded £138m in contracts, study finds

Companies that have recently donated to Labour were awarded contracts worth almost £138m during the party’s first year in government, according to new research that raises fresh concerns about the relationship between political donations and public spending. 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 donating more than £580,000 to the party that then received 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, 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 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 is 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.” Dr Will Stronge, chief executive of the Autonomy Institute, said: “When the same corporations that bankroll political parties also win government contracts, the line between public service and private influence becomes dangerously blurred. The only way to alleviate concerns about favouritism and corruption is a ban on political donors receiving government contracts.” The study also identified four of the government’s 39 designated “strategic suppliers” – companies on which it significantly depends – that had donated to political parties and subsequently received contracts: Fujitsu, KPMG, Microsoft and PwC. Microsoft and PwC had donated to and received contracts under both Labour and the Conservatives. Before the 2024 election, Labour sharply criticised the awarding of contracts to Conservative-linked companies without competitive tender during the pandemic. The then shadow chancellor Rachel Reeves said: “The British public are understandably still angry that so much money from the public purse ended up with the friends and donors of the Tory party.” PwC said in a statement: “We consider requests for non-cash support from the main political parties – typically secondees providing limited, technical assistance under strict confidentiality and governance arrangements. We have no political affiliation.” KPMG declined to comment. Labour and all the other companies mentioned were contacted for comment but did not respond. The study included the projected value of contracts that extend into the future, meaning not all of the £28.8bn has yet been spent. It also focused solely on corporate donors, not individuals donating in their own names.