Morgan McSweeney fails to declare £740k in Labour donations

Morgan McSweeney fails to declare £740k in Labour donations
Credit: Thomas Krych / Story Picture Agency

UK (Parliament Politics Magazine) – Prime Minister Keir Starmer’s chief of staff, Morgan McSweeney, failed to declare nearly £740k in gifts to Labour Together, breaching electoral rules.

As reported by The Guardian, the elections watchdog allegedly warned Morgan McSweeney to declare hundreds of thousands in donations, but he ignored it.

Between 2017 and 2020, he did not report almost £740,000 in donations to his Labour Together group.

The campaign group that supported Sir Starmer to become Labour’s leader was later fined over 20 times for electoral law violations, including not declaring donations.

What did the Electoral Commission tell Morgan McSweeney about undeclared donations?

The Electoral Commission told Morgan McSweeney he had to report donations and warned that failing to do so would violate the law.

Sources said the watchdog confirmed it told Mr McSweeney in 2017 that Labour Together must declare gifts as a members’ association involved in political activity.

He was reportedly instructed to report all donations at once and explain why they had not been declared. He later received a follow-up call instructing the campaign group to report all gifts below £7,500.

The summary of the first call states,

“Labour Together have not been reporting donations to us. Mr McSweeney was under the impression that Labour Together did not have to report because they do not campaign.”

It added,

“However, Labour Together is a registered members’ association on our system… I advised him to report the donations to us with a cover letter saying why they had not been reported sooner.”

What did Kevin Hollinrake say about Morgan McSweeney’s donations?

Kevin Hollinrake, Conservative Party chairman, accused Morgan McSweeney of hiding donations and called for police involvement.

He said,

“The facts are clear. Morgan McSweeney engaged in a significant cover-up of a secret slush fund that he used to install Keir Starmer as Labour leader.”

Mr Hollinrake added,

“No matter what spin Labour try and use, these documents and the leaked legal letters show that there is now nowhere for the Prime Minister’s chief of staff to hide, even as Starmer continues to demonstrate his appalling judgment by backing him. The Conservatives will not let Labour get away with this.”

What did a Labour source say about the investigation and Tory claims?

A Labour source stated,

“This was thoroughly investigated years ago and action was taken. The Tories can sling mud all they like, it doesn’t change the facts here.”

The party confirmed Mr McSweeney was paid by Keir Starmer’s leadership campaign amid new Tory attacks.

They added,

“Morgan’s salary was paid for by Keir’s leadership campaign for the duration of the campaign, not Labour Together. Neither Keir nor his leadership campaign accepted monetary or in-kind donations from Labour Together during the leadership election.”

What did a Labour Together spokesperson say about donation reporting?

A Labour Together spokesperson said the group “proactively raised concerns about its own reporting of donations to the Electoral Commission in 2020.”

The spokesperson added that the results of the investigation were publicly available.

Pat McFadden’s views on Morgan McSweeney’s talent and role

Pat McFadden, Work and Pensions Secretary, said Morgan McSweeney is being attacked by Tories because he is a “very talented man.”

Mr McFadden, a key figure in Labour’s 2024 election run, expressed full confidence in Mr McSweeney as No 10 chief of staff.

He said,

“I’m not surprised that people opposed to Morgan McSweeney are attacking him because he’s a very talented man.”

Mr McFadden added,

“I worked closely with him in the general election that we fought last year – and I think when opponents attack you like that, it’s because they know you’re a talented person.”

How did Labour MPs react to Mr McSweeney’s advice on Lord Mandelson’s appointment?

Labour lawyer Gerald Shamash warned Morgan McSweeney he needed evidence to avoid antagonizing the Electoral Commission. He recommended framing the matter as an administrative oversight.

Mr McSweeney is considered the mastermind behind Labour’s election victory and remains Sir Keir’s senior and trusted aide in Number 10.

Labour MPs have recently raised concerns over Mr McSweeney’s judgment. This follows reports that he suggested Lord Mandelson for US ambassador, despite links to convicted paedophile Jeffrey Epstein.

Key facts about the Labour Together

Labour Together was founded in 2015 by key Labour figures, including Keir Starmer, to examine election losses. It aims to research and develop strategies to help Labour win and build wider support. 

The group acts as an influential network within the party. It shapes policy and strategy from behind the scenes.