Donations to Labour Together prompt scrutiny of Starmer era

New reporting on Labour Together, the network founded by Morgan McSweeney to influence Labour's direction, has sharpened scrutiny of the group's finances and its role in the leadership transition. The Electoral Commission fined Labour Together £14,250 for failing to declare donations between 2017 and 2020, and Conservative lawmakers say private legal advice indicates efforts to mislead regulators could carry criminal risk.

From its 2017 inception, Labour Together drew support from major donors, including Martin Taylor (£50,000); Lord Myners (£25,000); and Trevor Chinn (£12,500). Over three years, the group raised more than £730,000. Yet, after December 2017, the group stopped reporting new donations to the Electoral Commission, save for a single £12,500 gift from Chinn in August 2018; filings only resumed late in 2020, prompting the regulator's inquiry.

McSweeney contacted Keir Starmer in 2019 and offered to marshal Labour's resources behind him if Starmer sought to replace Jeremy Corbyn after the anticipated defeat in the next general election. Labour Together portrayed itself publicly as a neutral, dull think tank, but its backing of Starmer helped shape the leadership contest and, by 2020, the organisation had become a central conduit for Starmer's ascent. McSweeney then moved to become Starmer's chief of staff, and Hannah O'Rourke, formerly an adviser to Ed Miliband, replaced him at Labour Together.

O'Rourke's takeover led to the discovery of the missing filings and an Electoral Commission investigation, which culminated in the £14,250 fine. Labour Together argued the omissions were an administrative oversight and not evidence of willful concealment. Conservative figures, citing private legal advice they say was obtained, contend that the advice suggested a deliberate attempt to obscure donor identities and avoid triggering regulator scrutiny. Kevin Hollinrake, the Conservative chair of the Treasury Committee, wrote to the Commission arguing the new information could justify a formal inquiry and potential police referral for breaches of political finance laws.

Observers say the case matters beyond archival accountability because it intersects with current political dynamics. Starmer's government has prioritized anti-corruption messaging and a broader push to stiffen penalties for breaches of electoral funding rules as a bill moves through Parliament. Labour Together's network continues to be deployed in Bridget Phillipson's deputy leadership campaign, with allies of rival Lucy Powell saying Phillipson's team is tapping into the same infrastructure. Some Labour figures say the network remains a key leverage point for McSweeney's faction, complicating ongoing internal debates about transparency and governance.

Analysts caution that the public implications extend to the integrity of party leadership and the confidence of voters in the electoral process. While Labour asserts it is strengthening rules and enforcement, critics argue that opaque sources of influence within the party can persist and threaten the perception of fairness in leadership contests. The broader political climate, already unsettled by other investigations and headlines about party funding, has raised the stakes for how the party handles donor disclosures and internal power structures.

Whether further inquiries will follow remains to be seen. The case underscores the importance of robust financial reporting for political groups and the role of the Electoral Commission in policing compliance. For now, Labour's leadership and its response to questions about McSweeney's conduct are shaping the political narrative as the country contends with the governance challenges facing the government.