News 02nd Oct 2024

Keir Starmer now has a chance to demonstrate his government's commitment to restoring trust in politics

Margot Mollat and Jem Mills-Sheehy

Transparency International UK

Margot Mollat (Senior Policy Manager) and leads Transparency International UK's strategic engagement and policy work with Wesminster and Jem Mills-Sheehy (Advocacy Officer) working on strategic engagement with parliament and civil society.

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The dust has now settled on Labour’s first party conference in power for 14 years. Yet what should have been a moment of celebration was overshadowed by a number of political rows and growing unease at the continuing coverage of ‘gift-gate’.   

Less than three months ago, Prime Minister Keir Starmer declared that the fight for trust will be the “battle that defines our political era”. Despite recent scepticism, there is cause for optimism. Starmer’s early actions in office reflected the importance of this ambition. Retaining Sir Laurie Magnus as the Government’s Independent Adviser on Ministerial Interests and promising him the power to initiate his investigations unfettered demonstrated a strong commitment to institutions to defend integrity. The forthcoming publication of the new Ministerial Code will be an opportunity to formalise these powers, and for Keir Starmer to signal his commitment to the Nolan principles by including them in its foreword.  

But as media attention on political donations and gifts continues, so too does public impatience. At fringe events, Labour members and weary journalists were quick to ask awkward questions: should politicians accept these gifts? Does this pose a conflict of interests? And importantly, what will Labour do about it?  

In response, ministers were eager to distance themselves from any comparisons to the previous government, insisting that Labour’s focus on delivering their new ‘missions’ would rebuild trust in politics. But simply delivering on promises isn’t enough. 

Labour needs to think critically about how to draw a line under ‘gift gate’ and turn this into an opportunity for reform. This is something that Lucy Powell, the Leader of the House, seemed to recognise during our panel event with the Institute for Government when she said that restoring trust isn’t just about “what you do” but also “how you do it.” 

The “how” is crucial. Research shows the critical role trust in politics plays in delivering effective government – especially when passing difficult reforms. If Labour is to avoid squandering its electoral mandate, it should foster a political culture rooted in public service and integrity, not just the managerialism of measuring results.  

News over the weekend that Ministers will have to declare gifts in the same way as MPs is welcome – but is only part of the solution. So far, media coverage has almost exclusively focused on politicians’ acceptance of gifts and hospitality. But perhaps the bigger question is why companies and individuals offer these gifts in the first place, and what they expect in return.  

In the UK, the majority of lobbying goes unreported, as it often takes place in informal settings like conferences or dinners, where it is not subject to disclosure. Loopholes in the Lobbying Act also mean just 4% of lobbyists have to declare their activities, leaving the public in the dark about who is influencing those in power. Expanding the lobbying register to include all lobbyists, particularly in-house professionals, along with more frequent and comprehensive departmental disclosures, would provide the public with a clearer understanding of the forces shaping government decisions. 

Recent controversies have also highlighted the risks of political parties relying heavily on a small pool of donors, with no limit to how much they can contribute each year. Labour has committed to reforms, but mainly focused on tightening the types of donations accepted. These should include safeguards to prevent foreign entities or UK-based shell companies turning no profit from donating to political parties. But the latest row shows why Labour should go further. The influence of big money in politics erodes public trust, creating the perception that political decisions are shaped by a privileged few rather than serving the public interest. For instance, our research found that nearly a quarter of all political party nominations to the House of Lords between 2013 and 2023 were donors, representing £58 million. Capping political contributions could reduce the reliance on large donors and eliminate perceptions of quid-pro-quo arrangements.  

Finally, the focus on gifts to new ministers also misses another significant issue. The most substantial gifts received by politicians aren’t arguably new clothes but, for many, a golden parachute of lucrative board appointments or consultancy contracts once they leave office. Our research found that between 2017 and 2022, almost a third of ministers and senior officials sought to take up jobs in areas they previously oversaw in government. With former ministers currently on the hunt for high-profile jobs, the time is ripe to strengthen the revolving door watchdog by introducing new rules on what jobs former ministers can accept and providing it with real enforcement powers. The previous government had already committed to these reforms, so Labour should face little resistance in Parliament in getting them onto the statute book.  

During Party Conference, Lucy Powell reflected that these issues had been ongoing for decades and that they were just in the seat when the music stopped. But instead of this becoming seen as a stumbling start for Labour, Keir Starmer has a unique opportunity to rise to the occasion and, despite the noise, demonstrate he is serious about restoring trust in politics. In returning politics to service, his government should seek to build a political culture that genuinely serves the public interest.