UK (Parliament Politics Magazine) – Philip Hammond, former chancellor, has made £30 million from advisory roles in the House of Lords, sparking concerns over conflicts of interest.
Ex-chancellor has secured millions through consultancy and director positions during his tenure in the House of Lords.
How did Philip Hammond secure millions from advisory roles?
Despite widespread criticism of their human rights records, Mr. Hammond has held positions in Saudi Arabia, Bahrain, and Kuwait. His portfolio also includes investment companies, technology businesses, and tax advisory firms.
As The Guardian reported, he has earned millions of pounds from these positions, though the exact amount remains unknown.
After entering the House of Lords in 2020, Philip Hammond quickly started acquiring clients. He then founded Matrix Partners, an advisory company that generated profits of at least £3 million.
Figures show he has personally received over £800,000 from the three Middle Eastern governments.
Official records disclose that during his time in office, he interacted with individuals linked to his current roles while still in government. He, after stepping down from government, took on an advisory position with the Japanese bank Nomura.
During his tenure as chancellor, he met with Nomura’s senior leadership in 2019. The meeting took place at the British ambassador’s residence in Tokyo to discuss economic matters.
Philip Hammond’s view about the Lord rules
The ex-chancellor defended his external engagements, arguing that the House of Lords maintains strict rules to prevent misuse of positions.
Philip Hammond, 69, stated,
“I have a diverse portfolio of outside interests, none of which is related to my membership of the House of Lords.”
He said,
“All my roles are fully compliant with both the letter and the spirit of the Lords’ rules and guidance, and I have engaged extensively with the Lords’ authorities over the years to ensure that each new role is fully compliant.”
Philip Hammond’s conduct in the Lords raised concerns
A Whitehall watchdog slammed him for lobbying a prominent civil servant on behalf of a bank that paid him as an adviser, ruling his actions as “not acceptable.”
The Advisory Committee on Business Appointments ruled in 2021 that Philip Hammond made an “unwise step” by contacting a senior Treasury official about a project tied to OakNorth Bank.
Mr. Hammond was involved in business, especially in real estate. By the time he became an MP in 1997, he was widely regarded as one of the wealthiest MPs in the Commons.
Financial disclosure rules for peers in the House of Lords
Under House of Lords rules, peers must disclose all official roles they hold to avoid conflicts of interest. However, they are not required to reveal the financial compensation from these positions.
While financial disclosure is generally not required, an exception applies when the payments come from foreign governments, in which case disclosure is mandatory.
Mr Hammond has revealed earning £503,000 from the Saudi government for economic consultancy. While in government, he maintained frequent engagements with Saudi officials.
It was reported that he secured £288,000 in earnings from Bahrain’s government for financial advisory services. Meanwhile, Kuwait’s investment office provided him £31,250 for consultancy work.
Who are Philip Hammond’s clients and business interests?
- Mitsui Sumitomo (Insurance company)
- RCK Partners (Specialist tax advisers)
- Arora (Hotel and property business)
- Copper Technologies
- Innovo (Property company operating in the UK, UAE, and Egypt)
- Embedded Finance (Fintech company)
- Municipal Partners (Non-profit providing affordable housing)
What did the Guardian’s analysis reveal about lords’ commercial ties?
On 24 February, Guardian analysis revealed that around 91 peers have received payments from private firms for political and policy advising, raising concerns over regulatory gaps.
It shows that the following peers have taken on consultancies:
- David Blunkett – Labour
- Andrew Lansley – Conservative
- Natalie Evans – Conservative
- John Woodcock (Lord Walney) – Crossbencher