Companies that donated to Labour awarded 138m in contracts, study finds

"Companies that have recently donated to Labour were awarded contracts worth almost 138m during the party's first year in government, according to new research that raises fresh concerns about the relationship between political donations and public spending. A report by the thinktank Autonomy Institute has identified more than 100 companies that have given money to political parties and then won government contracts, under both Conservative and Labour administrations."

"The study follows a previous investigation by the Guardian that revealed how companies linked to Tory donors had been given billions in public funds since 2016. The new analysis shows the pattern has continued under Labour, with eight companies donating more than 580,000 to the party that then received government contracts worth nearly 138m within two years of their donation (between July 2024 and June 2025). Looking beyond a two-year window, the thinktank found 25 Labour-linked companies had won contracts worth 796.43m since 2001."

"Dr Susan Hawley, executive director of Spotlight on Corruption said: There is nothing more damaging to public trust than the perception that those with privileged access to those in power get privileged access to taxpayer-funded contracts. These findings show a systemic problem with the UK's absurdly weak handling of conflicts of interest. It must lead to systemic solutions which include screening out political donors and their companies from the procurement process, and real consideration of a ban on company directors or their companies that receive public contracts from making political donations."

More than 100 companies donated to political parties and subsequently won central government contracts under both Conservative and Labour administrations. Eight companies donated over 580,000 to Labour and received nearly 138m in contracts within two years (July 2024–June 2025). Since 2001, 25 Labour-linked companies have won contracts worth 796.43m. A total of 125 companies that made 30.15m in donations were later awarded central government contracts worth 28.8bn, with about 2.5bn awarded within two years of donations. Calls have been made for systemic procurement reforms to address conflicts of interest and screen out political donors.

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