Lobbying scandal spreads to House of Lords

Lord Cunningham, Lord Laird, Lord Mackenzie accepted cash for lobbying.

And now the House of Lords has been dragged into the lobbying scandal. Following an investigation by the Telegraph and Panorama that has just ended Patrick Mercer's career, three members of the House of Lords were filmed offering to lobby ministers for cash. Lord Cunningham, Lord Laird and Lord Mackenzie told undercover reporters from the Sunday Times they would ask parliamentary questions to benefit a ficticious firm, and set up an all-party group as a lobbying vehicle. They also revealed that some peers were hiding conflicts of interest via job-swap deals, pulling strings for each other's clients in parliament. However all three deny any wrongdoing.

“The rules are very complex, but let’s not accuse all members who were involved in all this of being corrupt when in fact they aren’t," Lord Mackenzie told Radio 5live. "They’re simply trying to find their way through the morass of rules – it’s very difficult at times. But I’m quite clear I’ve broken no rules, I’ve asked no questions for money, and I’ve lobbied no ministers and nor would I do.”

He called for a reform of parliamentary rules to make them clearer.

As they stand, the rules for House of Lords members ban them from acting as advocates, hosting functions in the Lords or attempting to influence parliament, and, since 2009, "seeking to profit from membership of the house" in any way, even if they declared a financial interest. During the secretly filmed conversation with reporters, detailed in today's Sunday Times, Mackenzie explained how one could work round them:

“There is a rule that you shouldn’t host a reception in parliament where you have a pecuniary interest,” he said. “I thought that’s bloody nonsense. Nonetheless ... how would you get round that? “I just say to a colleague who has nothing to do with it, would you host a function for me?” He added: “Of course, I do the business anyway, but that gets round it.”

Jack Cunningham with Tony Blair and Bill Clinton. Photograph: Getty Images
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Lord Sainsbury pulls funding from Progress and other political causes

The longstanding Labour donor will no longer fund party political causes. 

Centrist Labour MPs face a funding gap for their ideas after the longstanding Labour donor Lord Sainsbury announced he will stop financing party political causes.

Sainsbury, who served as a New Labour minister and also donated to the Liberal Democrats, is instead concentrating on charitable causes. 

Lord Sainsbury funded the centrist organisation Progress, dubbed the “original Blairite pressure group”, which was founded in mid Nineties and provided the intellectual underpinnings of New Labour.

The former supermarket boss is understood to still fund Policy Network, an international thinktank headed by New Labour veteran Peter Mandelson.

He has also funded the Remain campaign group Britain Stronger in Europe. The latter reinvented itself as Open Britain after the Leave vote, and has campaigned for a softer Brexit. Its supporters include former Lib Dem leader Nick Clegg and Labour's Chuka Umunna, and it now relies on grassroots funding.

Sainsbury said he wished to “hand the baton on to a new generation of donors” who supported progressive politics. 

Progress director Richard Angell said: “Progress is extremely grateful to Lord Sainsbury for the funding he has provided for over two decades. We always knew it would not last forever.”

The organisation has raised a third of its funding target from other donors, but is now appealing for financial support from Labour supporters. Its aims include “stopping a hard-left take over” of the Labour party and “renewing the ideas of the centre-left”. 

Julia Rampen is the digital news editor of the New Statesman (previously editor of The Staggers, The New Statesman's online rolling politics blog). She has also been deputy editor at Mirror Money Online and has worked as a financial journalist for several trade magazines. 

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