Are Clothing Donations Unravelling the Labour Party? 

By Joshua Smith

The Labour Party is facing its first scandal for the third time.  

Since taking office, questions have repeatedly been raised over donations to senior Labour figures. Gifts to the Prime Minister alone include Taylor Swift concert tickets, seats at the Euro’s finals, and over £18,000 in glasses and clothes. Since December 2019, Keir Starmer has accepted over £100,000 in gifts; two and a half times higher than any other MP [1]. Whatever remains of Labour’s political honeymoon is quickly unravelling.   

As MPs return to Westminster, fresh from party conference season, Labour’s opinion polls continue to fall, and momentum has stalled. Despite declaring change, Starmer is facing the same generational pitfalls that have plagued the Labour Party since 1924.  

When Labour first saw electoral success over a century ago, the newly formed minority government quickly drew criticism over the personal finances of the then PM Ramsey MacDonald.  

Early into his premiership, MacDonald was secretly loaned £40,000 in shares and a car from philanthropist, long-time friend and managing director of McVitie’s, Alexander Grant. The loan was later discovered by the press following Grant’s nomination for a baronetcy. The subsequent ‘cash for titles’ scandal [2] tarnished MacDonald’s reputation, reducing goodwill and cooperation for the minority government.   

Again, during his first year in Downing Street, Tony Blair’s reputation was deeply damaged by his own sleaze scandal surrounding donations.  

The revelation of a donation of £1 million from Formula One’s chief executive, Bernie Ecclestone, sparked outrage after it was revealed the sport would be exempt from the new tobacco advertising ban. Allegations of sleaze were exacerbated by Labour’s mishandling of their media response, underestimating the scale of backlash.   

According to Blair’s Press Secretary, Alastair Campbell:   

“We were in a problem entirely of our own making and we had badly handled virtually every move to get out of it” [3]  

A century has passed since MacDonald proved Labour electable; Blair resigned as PM 17 years ago. And yet, Labour continues to falter due to a naïve approach to scandals, the press, and public opinion. Historic lessons in leadership appear hard-earned and few.   

In his first party conference speech as Prime Minister, Starmer declared that “the patient, calm, determined era of politics as service has begun” [4]. But are the public, or even his colleagues, still willing to be patient against the backdrop of his donations scandal? For one MP, the answer is clear.   

In a direct attack on the Prime Minister, MP Rosie Duffield has resigned from the Labour Party. Criticising Starmer’s “lack of basic politics and political instincts” [5], in her resignation letter. Duffield criticised the Labour leader’s unpopular choice to means test the universal winter fuel allowance for pensioners while simultaneously taking luxury gifts and donations.   

“The sleaze, nepotism and apparent avarice are off the scale. I am so ashamed of what you [Starmer] and your inner circle have done to tarnish and humiliate our once proud country.” [5] – Rosie Duffield MP  

Duffield joins the seven MPs currently suspended for voting against the King’s speech in protest over the decision to sustain the Conservative’s two-child benefit cap.  

 While Labour’s supermajority is strong in parliament, many constituencies face marginal majorities. With growing dissent from the party’s left, Labour could risk future electoral success over internal disputes.   

In the wake of the enduring scandal, it has been announced that the Prime Minister, Chancellor Rachel Reeves and Deputy Prime Minister Angela Rayner will no longer accept gifts of clothing. Alongside this, there will be limited reforms to the declaration process to ensure the entire parliament abides by the same rules. And yet, there remains little appetite for either larger reform or an admission of wrongdoing. After all, no rules have strictly been broken.   

While these minor announcements will be welcomed by many, they’re unlikely to restore Labour’s public perception. Like Blair and MacDonald before, the Labour Prime Minister has once again, underestimated the damage of a scandal. Starmer’s administration may yet continue to unravel, but without dedicated reform to donations and party funding, this scandal won’t be the last.  

Sources:

[1] Coates, S. (2024). Sir Keir Starmer declares gifts and freebies totalling more than £100,000 – the highest of any MP. [online] Sky News. Available at: https://news.sky.com/story/sir-keir-starmer-declares-gifts-and-freebies-totalling-more-than-100-000-the-highest-of-any-mp-13217287.
[2] Torrance, D. (2024). The Wild Men. Bloomsbury Publishing, pp.187–189.
[3] Alastair Campbell (2011). Diaries Volume Two: Power and the people. Hutchinson, p.208.
[4] The Labour Party (2024). Keir Starmer speech at Labour Party Conference 2024. [online] The Labour Party. Available at: https://labour.org.uk/updates/press-releases/keir-starmer-speech-at-labour-party-conference-2024/.
[5] Mustoe, H. (2024). Canterbury MP Rosie Duffield’s Resignation Letter in Full. The Independent. [online] 29 Sep. Available at: https://www.independent.co.uk/news/uk/politics/rosie-duffield-resignation-letter-full-starmer-labour-b2620714.html.