Recent research reveals that companies which contributed to the Labour Party received contracts totaling nearly £138 million in the party’s first year in government. Conducted by the Autonomy Institute, the study outlines a pattern where over 100 companies, having made political donations, subsequently won government contracts during both Labour and Conservative administrations.
The analysis highlights that eight companies, which donated more than £580,000 to Labour between July 2024 and June 2025, obtained significant government contracts shortly after their contributions. Extended findings show that 25 companies linked to Labour secured contracts worth approximately £796.43 million since 2001.
The report follows a previous investigation that uncovered billions in public contracts awarded to firms associated with Conservative donors since 2016. According to the Autonomy Institute, a total of 125 firms received central government contracts worth £28.8 billion after donating £30.15 million to political parties, with around £2.5 billion allocated within two years of their donations.
Notable examples include Baringa Partners, which donated £30,061.50 to Labour in January 2024, and later received over £35 million in contracts. Similarly, Grant Thornton donated £81,658.37 before being awarded £6.5 million in contracts. Nonetheless, the majority of contracts – approximately £25.4 billion – were awarded to Conservative donors, including firms like Randox Laboratories during the pandemic.
In response to the findings, a Conservative spokesperson emphasized the party’s compliance with electoral laws and stated that donations do not influence contract awards. A government representative asserted that all contracts are awarded transparently and adhere to public procurement regulations.
Dr. Will Stronge from the Autonomy Institute suggested that a ban on political donors receiving government contracts might alleviate concerns regarding favoritism and corruption. The review also indicated that several key government suppliers, including Fujitsu and Microsoft, had made political donations before receiving contracts.
Overall, the study raises questions about the relationship between political donations and public contracts across party lines.
Source: https://www.theguardian.com/politics/2025/oct/26/companies-that-donated-to-labour-awarded-138m-in-contracts-study-finds