Whistleblower alleges private investigators hired in McSweeneygate scandal

London — Paul Holden, the whistleblower author at the center of the McSweeneygate affair, says Labour Together hired private investigators to undermine his inquiries after he began detailing the think-tank's failure to declare more than £700,000 in donations while Morgan McSweeney was in charge.

Holden told The Mail on Sunday he was 'pretty damn scared' to learn that a seasoned investigative journalist like him was being investigated, with researchers looking into him, his family and colleagues at Labour Together's request. He also said Josh Simons, the former Labour Together director who now serves as a Cabinet Office minister, was at least aware of the private research into him. The allegations appear in Holden's forthcoming book The Fraud, which the disclosures and internal politics around McSweeney's donations have already prompted reaction in Westminster.

Holden's book contends that the missing declarations were not simply the result of 'human error and administrative oversight' but potentially a deliberate attempt by McSweeney to hide donations that were later used to propel Sir Keir Starmer's leadership bid. The claims place fresh pressure on the prime minister and his inner circle, and raise questions about the integrity of the campaign's funding disclosures. Labour Together was fined £14,250 for late declaration of the donations.

Labour Together has said it 'proactively raised concerns' with the Electoral Commission over the undeclared donations and has since taken steps to ensure compliance with all regulations. The Electoral Commission, asked last week to reopen its 2021 investigation into the think-tank, said it found no evidence of any other offences and declined to resume the probe. Mr Simons and Labour Together declined to comment on Holden's allegations.

The disclosures have already led to the resignation of Paul Ovenden, No 10's director of political strategy, over remarks about Diane Abbott. Holden, who was born in South Africa and has spent more than a decade probing corruption and serious economic crime, said his research has long exposed him to sensitive information and that his decision to relocate to the UK was a hedge against risk.

The allegations add to the ongoing scrutiny of McSweeney's role and its influence on Labour's fundraising and strategy, and they underscore questions about the handling of donations that helped Sir Keir Starmer secure the leadership in 2020-21.