Letter to Editor: Has Labour sleaze started after UK Treasury failed to tell watchdog about senior official’s Labour donation
Your Say / Sun 18th Aug 2024 at 08:04am
Dear Editor,
I AM sure many can remember the Labour government that in 1997 gave an exception to Formula 1 on tobacco advertising following Bernie Eccleston’s £1million donation to the Labour Party, but few would credit sleaze being so quick off the grid in Sir Keir Starmer’s self-declared ‘Government of Service’.

However, an article in Politico published August 14 exposes the sleaze of a banker being given a senior HM Treasury director of investment position without an open selection process, a post usually reserved for career civil servants. The sleaze is further amplified by the failure to disclose to HM Treasury the £20,000 of donations made to Labour’s Rachel Reeves, the Chancellor of the Exchequer, by the former banker Ian Corfield who got the job.
Politico’s article quite fairly points out that appointing senior positions without an open selection is not unusual, but requires an exemption by the Civil Service Commission (CSC) for recruiting candidates with external skills that cannot be found amongst civil servants, such as staff hired for the Covid 19 Test and Trace scheme.
Politico’s informants reveal: “Corfield’s appointment was given the green light by the commission under these rules, but two individuals familiar with the process, granted anonymity to discuss matters they were not authorized to share publicly, have confirmed to POLITICO that the regulator was not told about his prior donations ahead of its decision.”
Recruitment for such a senior role as director of investment at HM Treasury requires due diligence and as the CSC spokesperson stated “is a matter for the employing department.”
The Treasury refused to confirm whether the donations were declared to James Bowler, the most senior civil servant in the department who is responsible for propriety.
The highly respected think-tank Institute for Government made clear it’s concerns. Jack Worlidge, one of their senior researchers, said the case “exposes clear gaps in the rules.”
Worlidge added: “During the election campaign Labour repeatedly emphasized its credentials around propriety and ethics. It will be interesting to see if the new Ethics and Integrity Commission closes some of these gaps.”
Interestingly, the CSC state in their Recruitment Principles that government departments “will be required to report on their use of Exceptions in the annual compliance statement and their use of Exceptions may be subject to audit.” I’m sure the opposition parties await this compliance statement with glee.
A small correction. The Politico article says Ian Corfield "donated more than £20,000 to Labour politicians including the now-Chancellor Rachel Reeves." A BBC article on August 15 gives more detail: "Over the past decade Mr Corfield has donated a total of £20,000 to Labour MPs, including £5,000 to Rachel Reeves in July 2023. Previous donations included Labour's former deputy leader Tom Watson in 2015 and 2017." See BBC article at https://www.bbc.co.uk/news/articles/cdd7y8evel7o
This is a very valid question. I hope we hear from Chris Vince on the subject. "a post usually reserved for career civil servants", this also raises a question of whether apparently restricting the selection process actually enables recruiting the best person for the job
£20,000 over 5 years. Wow, what a shocking incident. Then compare that with the horrendous record of the last 14 years. David Cameron and the Panama Papers, Theresa May diverting cash to her constituency council, the never ending slurry river of Boris Johnson giving peerages to KGB security risks and former members of staff, Liz Truss putting staff into the Lords for their utterly inept and downright stupid work that we still live with. Let's not forget the COVID PPE horror show and the billions that were blown and will never be recovered. Perhaps this is just a knee jerk super sensitive reaction to all the crap we've been fed since 2010.
Oh ! Dear a Labour government in power for 6 weeks and already the right wing sleaze bags are out in force . They are hoping to dish the dirt to such a degree ,that the corruption,cronyism,and downright mismanagement of the economy, for last 14 years of a Tory government can be swept under the carpet .
Easy to check. Who said at the Liverpool Labour party conference in 2016, XXXXXX warned that there were “bubbling tensions in this country that I just think could explode” if immigration were not curbed after Brexit. Her Leeds West constituency, she said, was “like a racially charged tinderbox”. That person with a recent memory loss, Rachel Reeves, Our new Chancellor of the exchequer. As to appointments without going through due process such as Ian Corfield, you don't have to go back to far to remember Labour approaching Sue Gray whilst she was acting as "The Permanent Under-Secretary of State for the Cabinet Office," as the independent lead for the covid enquiry and the tory governments action. That job as Labours chief of staff allocated to Grey, never went through the open application neither.
Seriously don't expect Chris Vince to comment anytime soon, he will be too busy making sure he does what Starmer demands rather than what's best for Harlow Residents
This cronyism has its roots in Tony Blair led New Labour governments. Journalist Peter Osborne describes in his 2007 book 'The Triumph of The Political Class' on page 149: "New Labour in government did not merely triumphantly challenge the principle of civil service neutrality. In a gigantic irony, it also constantly sought to undermine the Northcote/Trevelyan principle of promotion by merit and open competition. Ministers endlessly intruded themselves into the procedure for the selection and promotion of civil servants. To give one example, Jack Straw as Foreign Secretary sat on the board which selected Sir Peter Ricketts as Permanent Under-Secretary at the Foreign Office."
What are the consequences of undermining the civil service by keeping it at arms length and interfering in long-standing merit based recruitment and promotion procedures? Peter Osborne states it on page 147 of his book: "The first concerned an abrupt decline in elementary competence." Oborne explained that painstaking attention to detail is what good policy reform requires and what civil servants are trained for. He says: "With officials sidelined, these tasks fell to the Downing Street inner group with unavoidable consequences. A large reason for the failure of the Blairite public service reforms must be put down to the lack of attention to process implicit in the new system of government."
Given that Sir Keir Starmer is following the Tony Blair New Labour model with a centralised command and control model that sidelines the civil service, it is highly likely that similar failures of policy reform will occur, particularly in the NHS which is going to be reform heavy under Wes Streeting.
This is a poor attempt at digging around to find "sleaze" where there isn't any. Corfield's appointment (as an unpaid advisor rather than a salaried civil servant) was perfectly regular. So were his donations to the Labour Party. No story here except for the Conservatives' desperate attempt to deflect from their own truly shocking record of corruption while in government.
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