The PricewaterhouseCoopers building in Luxembourg. Photo: Getty
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Labour's biggest non-union donation is from PwC – a firm accused of "promoting tax avoidance"

The latest party donation figures show the Labour party's biggest donation, aside from the unions, is in staff secondments from the huge accountancy firm slammed by the Public Accounts Committee.

Rather embarrassing news for Labour after a good run at keeping the tax shenanigans of the wealthy in the news. It turns out the largest donation the party received from a non-union donor in October-December last year was from PwC. The accountancy giant gave the party £386,605. This wasn't a cash donation, but a donation of staff secondments who do analysis and research for the party in the absence of access to the civil service. As both Labour and PwC point out, the secondees are impartial.

This is pretty awkward for the party, not only because the firm is known for its tax expertise, but also due to recent accusations from the Public Accounts Committee. The committee chair and Labour MP Margaret Hodge told the BBC at the beginning of this month that Labour shadow cabinet ministers, such as Ed Balls, Chuka Umunna, and Rachel Reeves, receiving assistance from the firm is "inappropriate".

She was speaking on the day that her committee produced a report accusing the firm of "the promotion of tax avoidance on an industrial scale". PwC disagreed with this analysis but did comment that the UK tax system is "too complex".

Here are the donation figures, published by the Electoral Commission:

Click on table to enlarge

A Labour spokesperson commented:

PwC have provided long standing staff support to all three major political parties on a non-party basis, as happened for the Conservatives and Lib Dems before the last election. Given the complexity of government decisions in areas such as tax policy – and that opposition parties do not have significant access to civil servants – the support provided by organisations such as these helps ensure that there is better scrutiny of government policy. Secondees do not influence opposition policy decisions. Where organisations provide staff to support research and analysis for opposition parties it is right that these are declared – as currently happens – in the Register of Members' Interests

Nevertheless, if the tax avoidance row rumbles on, this donation will give the Conservative party a response to Labour's accusations about Tory donors.

Doubly tricky for Labour is that it actually accepted a higher amount than the Tories did in the fourth quarter of 2014. Adding up public funds to donations excluding public funds, Labour accepted £10,888,480 to the Tories' £8,365,141. This somewhat undermines Labour politicians' claims that they will be outspent by the Conservatives this election.

Anoosh Chakelian is senior writer at the New Statesman.

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Tony Blair won't endorse the Labour leader - Jeremy Corbyn's fans are celebrating

The thrice-elected Prime Minister is no fan of the new Labour leader. 

Labour heavyweights usually support each other - at least in public. But the former Prime Minister Tony Blair couldn't bring himself to do so when asked on Sky News.

He dodged the question of whether the current Labour leader was the best person to lead the country, instead urging voters not to give Theresa May a "blank cheque". 

If this seems shocking, it's worth remembering that Corbyn refused to say whether he would pick "Trotskyism or Blairism" during the Labour leadership campaign. Corbyn was after all behind the Stop the War Coalition, which opposed Blair's decision to join the invasion of Iraq. 

For some Corbyn supporters, it seems that there couldn't be a greater boon than the thrice-elected PM witholding his endorsement in a critical general election. 

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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