Labour Together and APCO Worldwide: Cabinet Office Review

(Urgent Question): To ask the Chancellor of the Duchy of Lancaster if he will make a statement on the Cabinet Office review into Labour Together and APCO Worldwide.

Freedom of the press is a cornerstone of our democracy, and the Government are committed to upholding and protecting that freedom. Journalists must be able to do their job without fear or favour, including holding politicians of all political parties to account on behalf of the public that we all serve.

In the past week, there have been a number of media reports about the actions of the think-tank Labour Together in 2023 and 2024. Some of those media reports have included allegations about the conduct of the joint Parliamentary Under-Secretary of State for the Cabinet Office and the Department for Science, Innovation and Technology, my hon. Friend the Member for Makerfield (Josh Simons), who was previously the director of Labour Together.

As the Prime Minister confirmed last week, he asked civil servants in the Cabinet Office propriety and ethics team to establish the facts. As Members across the House will know, all civil servants are bound by the civil service code, which dictates that they act with integrity, honesty, objectivity and impartiality. The exercise to establish the facts around the allegations was bound by those principles.

That work has now concluded and the facts have been reported to the Prime Minister. The Prime Minister has been advised that the matter should now be referred to the independent adviser on ministerial standards, and the Prime Minister has done so today. This is not a new process, but a continuation of the process that the Prime Minister has started. The Prime Minister will make a judgment when he has received the advice from the independent adviser. That will happen very soon, and the independent adviser’s advice to the Prime Minister will be made public in the normal way.

The independent adviser is appointed to provide impartial, independent advice to the Prime Minister, in line with his published terms of reference. The current independent adviser was appointed under the last Administration by the Prime Minister’s predecessor and is independent of the Government. He will provide his independent advice directly to the Prime Minister.

I reiterate that a free and independent press is an absolutely essential part of a free, open and democratic society and is one of the things that makes our country great. Representing the public as a Minister is a privilege and a duty, and public scrutiny is rightly part of that. The Government are committed to protecting freedom of the press, and no journalist should ever be intimidated for trying to hold those in power to account.

Thank you for granting this urgent question, Mr Speaker. The details of this story are quite extraordinary, even by the standards of this Government. While he was the director of the think-tank Labour Together, the now Parliamentary Secretary, Cabinet Office, the hon. Member for Makerfield (Josh Simons), paid a PR agency to investigate the “backgrounds and motivations” of British journalists who had written about Labour Together’s breaches of electoral law, of which there were many—more than 20, the most famous being a failure to declare £730,000-worth of donations. The agency produced a report that included an allegation that the journalists in question had relied on Russian hacking. Needless to say, those reports were entirely spurious.

The Minister has claimed that the agency acted beyond its brief, but in the past few days an email from the agency to the Minister has been published, showing that he was shown that a “human intelligence investigation” into the journalists would take place. That investigation included details of one journalist’s Jewish faith and made claims about his ideological upbringing and personal relationships. The report was then circulated to key members of the Labour party and to GCHQ, who swiftly said that there was no case to answer.

This looks to all intents and purposes like a deliberate attempt to smear and intimidate journalists whose only “crime” had been to report that Labour Together had broken electoral law. As of today, it is very difficult to see how the Minister’s position is tenable.

The referral to the independent adviser, which the Chief Secretary to the Prime Minister has just announced, is the right thing to do, but it should have been done immediately. This should not have been dealt with internally in the Cabinet Office, where the Minister in question is the Minister with responsibility for inquiries and whistleblowing—you couldn’t make this stuff up! I must ask the Chief Secretary to the Prime Minister why the Minister has not been suspended while the investigation is going on.

I will take those questions in reverse order. The shadow Chancellor of the Duchy of Lancaster accused me of taking money from Labour Together. That is not true. I had a number of staff seconded to my office when I was a member of the shadow Cabinet. As I am sure Opposition Members know, that is an important contribution that is made to political parties, as the Opposition do not have access to the civil service, but no money was taken—not one pound, not one penny—and seconded staff were reported in the proper way. I hope that the hon. Gentleman will revoke those comments when he gets the opportunity.

The hon. Gentleman’s second question was about the investigation led by the propriety and ethics team. I can confirm that that was led by a senior member of staff—not the member of staff to whom the hon. Gentleman referred—who reported directly to the Prime Minister.

The hon. Gentleman’s first question was about why the Minister in question has not been suspended while the investigation is taking place. That is because the independent adviser on ethics can investigate Ministers only while they are in office. If the Minister had been suspended or removed from office, the independent adviser would not be able to undertake his work, and the Prime Minister thinks it is important that the independent adviser is given the opportunity to do just that.

May I put it to the Minister that a significant number of Ministers in this Government, including him, received large sums of money from Labour Together? I think he received almost £60,000.

The Minister is shaking his head. If what I have said is untrue, I withdraw it, but a number of Ministers did receive money. Did it not leave a bad taste in many people’s minds—if you can have a bad taste in your mind—that so many Ministers were standing in judgment on another Minister who had been the director of Labour Together? Clearly, the right thing to do is to hand over the investigation to an independent third party. Narrowing the investigation down to simply one man is a mistake, given that Labour Together has made a number of serious blunders.

To repeat myself, just for the record, I did not receive a pound from Labour Together. I would appreciate it if Members did not keep repeating that falsehood.

The answer to my hon. Friend’s question about the independent adviser is in the title: the independent adviser is independent of Government and is looking at this matter in the proper way, as my hon. Friend would expect. We will wait for that advice to come to the Prime Minister, which I expect to happen very shortly.

I call the Liberal Democrat spokesperson.

The Liberal Democrats are appalled by reports of smear tactics being used by the party that came into government with a promise to clean up politics following a decade of sleaze under the Conservatives. Investigative journalists have a vital role to play in holding Governments and commercial entities to account. A free and fair press is the cornerstone of a thriving democracy, and this revelation is an outrageous attack on our free press. Can the Government clarify what steps they are taking to uphold the independence of journalism in this country?

Successive Governments have eroded the public’s trust in politics, so will this Government now implement the Liberal Democrats’ suggestion of putting the ministerial code on a statutory footing? I have heard what the Chief Secretary to the Prime Minister has said about keeping the Parliamentary Secretary for the Cabinet Office in his job while the investigation takes place, but does he not agree that this is one more example of the Government insisting that process has to take precedence over political judgment? Can a way not be found for the Minister to step aside while a full investigation is undertaken?

The best route for independent investigations of these types is the independent ethics adviser. As I have informed the House, he can only investigate sitting Ministers. The process is important, and although it is not for me to make the case one way or the other for the Minister in question, he refutes the allegations and needs to be given the chance to go through that process. The independent adviser will then independently give a view to the Prime Minister in relation to the ministerial code and other issues. Ultimately, it is a question for the Prime Minister as to what should happen next.

I will slightly correct the hon. Lady, if I may. The accusations being made are not against the Labour party or the Government, but against the think-tank Labour Together.

I am the secretary of the National Union of Journalists parliamentary group, and we play a specific role in trying to protect the ability of journalists to report honestly and fairly across the world. We believe that what we saw was an attempt to smear journalists to prevent them from reporting the truth. That is why I wrote on five occasions to the general secretary of the Labour party, and to the Prime Minister, to ask for an independent inquiry. In the end, I was told that an inquiry was being undertaken by the Public Relations and Communications Association, which is not a regulatory body. I was told that the Cabinet Office was not carrying out an investigation, but assembling the facts. We now know that ex-Labour Together staff are in that team, and we know that Ministers have received donations, often to their office or their campaign. The scale of the donations from Labour Together is shocking, to be frank. It is almost as though an organisation has bought a political party—that is one of our worries.

Now we are told that this matter will be referred to the independent adviser. Is it true that the independent adviser will investigate the whole sequence of events with regard to Labour Together, and not just the role of this individual MP, who is now a junior Minister, during the period when he was an MP or a Minister? We need to get the full truth of what went on. At the moment, this does not pass the smell test, as far as I am concerned.

As the House will know, the independent adviser on ethics has the remit to investigate Ministers on behalf of the Prime Minister in relation to concerns on which the Government have standing to ask such questions. Any questions about what happened or did not happen within Labour Together as a private organisation are a matter for the board of Labour Together.

It is a whitewash—it is another whitewash!

Order.

To paraphrase Churchill, the cornerstone of a free society is a free press. Whatever the investigation may be looking into, I am afraid that the Parliamentary Secretary, Cabinet Office has admitted that he set the investigation going because he did not like the report that had been issued about donations. That should not need an independent inquiry; the Prime Minister should sack this Minister now. The Chief Secretary to the Prime Minister is here in effect to represent the Prime Minister, so I ask: will the Prime Minister U-turn before or after Prime Minister’s questions this week?

As I have said repeatedly, the process is now for the independent adviser to follow, for advice to be presented to the Prime Minister, and at that point the Prime Minister will make a decision.