Shabana Mahmood dragged into row over £700,000 in hidden Labour Together donations
Leaked emails show the Home Secretary discussed why the Electoral Commission was not told about large donations to Labour’s think tank run by Keir Starmer’s right-hand man
London — Shabana Mahmood, the newly appointed Home Secretary, has been dragged into a growing controversy over £700,000 in hidden donations to Labour’s think tank Labour Together, which is run by Sir Keir Starmer’s chief of staff, Morgan McSweeney.
Leaked emails reveal Mahmood was involved in discussions about why the political funding watchdog was not told about large sums donated to Labour Together, with Mahmood and fellow Labour MP Steve Reed, who now oversees electoral law, reportedly arguing the money was being kept hidden to protect a Jewish donor amid a period of heightened tensions over anti-Semitism within the party.
The Conservative Party immediately pressed for a fresh Electoral Commission inquiry and urged that the matter be referred to police if warranted. Shadow Home Secretary Chris Philp told the Daily Mail that Mahmood should be transparent about what she knew and when, given her department’s responsibility for oversight of law-enforcement agencies. He argued that the dispute risks distracting Labour from its policy challenges on crime and immigration.
Labour Together was established about a decade ago to counter the party’s leftward drift under Jeremy Corbyn and later helped shape Sir Keir Starmer’s rise to leadership. The watchdog later found that Labour Together reported receipts inconsistently after December 2017, when Mr McSweeney began serving as a senior adviser to the party’s leadership.
In the wake of the disclosures, Downing Street has faced questions about potential grounds for a police review related to donations and reporting. The Electoral Commission said it conducted a thorough investigation and concluded that the association had committed failures without reasonable excuse, and that offences were determined and sanctioned accordingly. Labour Together was fined £14,250 for more than 20 breaches of electoral law, according to the commission.
Private correspondence from Labour Party lawyer Gerald Shamash, revealed in the leak, shows that in February 2021 he discussed with Mahmood and Reed how McSweeney had approached the Electoral Commission in 2018. Shamash wrote that the directors and board wanted to be as transparent as possible but were conscious of rising anti-Semitism and sought to protect Trevor Chinn, an early backer of Labour Together.
A spokesman for Labour Together said the think tank proactively raised concerns about its reporting and fully cooperated with investigators. The Electoral Commission stated it thoroughly investigated the concerns and was satisfied that the evidence proved beyond reasonable doubt that there were failures, with sanctions applied accordingly.
The renewed controversy comes as a highly anticipated, critical account of Sir Keir’s path to No 10 enters public discussion, with observers noting that the revelations could complicate Labour’s narrative ahead of next year’s political contests. In Britain’s current political climate, the dispute underscores ongoing scrutiny of party finance and the balance between strategic fundraising and compliance with electoral law.