Labour aide hid £50,000 donation on day he was told to declare, documents show

LONDON — Official documents show that Morgan McSweeney's Labour Together think-tank received a £50,000 donation on the same day the Electoral Commission confirmed in writing that he was required by law to report all donations of more than £7,500. The funds were not disclosed for more than three years, by which time McSweeney had become Sir Keir Starmer's chief of staff.

The disclosure lapse adds to questions about Labour Together's claim that its failure to report more than £730,000 in donations over a three-year period was the result of "human error and administrative oversight." It also places renewed pressure on the Electoral Commission to reopen an investigation into the episode, which originally led to the think-tank being fined for more than 20 breaches of election law. Tory chairman Kevin Hollinrake has urged authorities to pursue the case, arguing that the matter touches on the heart of public accountability.

Electoral Commission records show that the watchdog warned McSweeney in November 2017 that he had a legal duty to declare donations and advised him to write to explain why he had not done so. McSweeney contended that Labour Together was not covered by the law because it was not directly involved in campaigning. But the Commission replied on December 6, 2017 to confirm that Labour Together was considered a "Members' Association" under the Political Parties, Elections and Referendums Act 2000 and thus fell under the "regulated donee rules." The notice also stated that a Members' Association has up to 30 days from the day they accept a permissible donation to report it. Despite these warnings, the £50,000 donation from hedge-fund boss Martin Taylor on the same day was not reported until February 2021, more than three years later and after McSweeney had left Labour Together.

A leaked email this week suggested McSweeney told Labour lawyers he had spoken to the Electoral Commission in "early 2018" and was advised Labour Together did not have to declare donations. However, top Labour lawyer Gerald Shamash told him that neither the watchdog nor Labour Together had any record of such a conversation. Shamash said the scale of undeclared donations made it difficult to explain the situation and advised portraying the matter as an "admin error"—a tactic the think-tank reportedly adopted.

The crisis widened when Housing Secretary Steve Reed—who served on Labour Together's board at the time—refused to answer questions about his knowledge of the donations. Reed told BBC Radio 4's World At One that the matter was "closed" following the Electoral Commission's first probe in 2021, in which the commission fined Labour Together £14,250 in what it described as a relatively small sum. Labour Together said it had proactively raised concerns about failures to declare donations and had fully cooperated with the investigation. The Commission said its original inquiry proved beyond a reasonable doubt that failures by the association occurred without reasonable excuse and noted it was considering a request from the Conservative Party to reopen the inquiry.

The revelations come amid longstanding questions about how Labour Together reported funding and whether the group properly followed the reporting rules required of political entities linked to parties. The parties involved have stressed that they cooperated with authorities and that any lapses were resolved or explained in subsequent inquiries. Critics say the episode underscores the need for greater transparency around political donations and the oversight role of the Electoral Commission, which has faced pressure from lawmakers to strengthen enforcement.

As the investigation and political fallout continue to unfold, observers say the case could influence broader debates about campaign finance rules in the United Kingdom and the accountability mechanisms governing think-tanks and associated organizations linked to major political actors. The Electoral Commission has not announced a decision on reopening the case, but officials indicated they are reviewing the request and any new material that has emerged since the previous probe.