Big Business Donations to Labour Shot up Before Last Election, Analysis Reveals

Business donations to the Labour party shot up dramatically under Keir Starmer as part of a historic surge in corporate funding of politics in the run-up to the 2024 general election, new analysis shows.

The figures, compiled by the Autonomy Institute and seen by Novara Media, raise questions about the corporate capture of politics, as campaigners call for caps on political donations.

Big business gave Labour over £14m in 2024, compared to just £800,000 in 2019 – an increase of around 1,700% – shifting the party from being only marginally business-funded to a major recipient of corporate money.

The dramatic increase started from a low base, as businesses abandoned Labour in the last years of the Corbyn project.

Following the 2019 general election defeat, Starmer sought to woo businesses alienated by Corbyn. This included offering wealthy donors membership of an exclusive club called the “Chair Circle”, which gave them access to “invite-only strategy updates”, launching a “prawn cocktail offensive 2.0” to entice big business backing, and inviting corporations to “mold” Labour’s election plans and get its “fingerprints” on Starmer’s policy agenda.

The charm offensive worked, and the proportion of Labour’s donations that came from business increased from around 2% in 2019 to 22% in 2024, marking a step-change in how the party was funded. The biggest single donation to Labour in the lead-up to the 2024 general election came from green energy firm Ecotricity, owned by Dale Vince.

Overall, the corporate share of pre-election funding increased from 18% in 2019 to 29% in 2024. The Conservative party remained the biggest single recipient of corporate political funding in 2024, despite a 9% decline, receiving £23.25m. The decline in donations to the Tories and rise in corporate donations for Labour resulted in a narrowing of the historic gap between the two parties.

The research comes as the government plans to end the use of front companies that hide the course of dark money in UK politics, curb gifts from foreign states and companies, and restrict cryptocurrency donations as part of its elections bill, most notable for giving votes to 16-year-olds.

The bill includes new rules around transparency of political donations, including obliging parties to undertake risk assessments of donors who give significant amounts and requiring companies donating to have a substantive connection to the UK. However, campaigners including Transparency International and the Electoral Reform Society say that this doesn’t go far enough, and are calling for caps on political donations.

Will Stronge, chief executive of the Autonomy Institute, said: “The 2024 election cycle clearly marked a definitive shift towards a more business-funded model of UK politics that raises significant questions about corporate political influence.

“This should worry us all, as it means more money in politics, and particularly coming from some of the world’s most powerful corporations.”

Steve Goodrich, head of research and investigations at Transparency International UK, said: “Sky-high spending limits and weak donation rules have created a dash for cash that is spiralling out of control.

“The public already believes the wealthy wield too much influence over our politics – and parties’ growing dependence on a small club of well-resourced donors does nothing to ease those concerns.

“The elections bill is an opportunity for the government to turn this around and restore faith in our democracy by capping donations and taking big money out of politics.”

The Autonomy Institute previously revealed how companies that donated to Labour were awarded £138m worth of contracts in the party’s first year of government.