A new report by the Autonomy Institute has found that companies donating to Labour have been awarded nearly £138m in government contracts during the party’s first year in office.
The findings, which echo similar patterns under the previous Conservative administration, have reignited concerns over political transparency and procurement integrity, with anti-corruption campaigners calling for reforms to prevent companies that donate to political parties from bidding for public contracts.
The report identified eight companies that donated a combined £580,000 to Labour between July 2024 and June 2025, before receiving contracts totalling £137.9m within two years of their donation.
Looking beyond the current administration, the Autonomy Institute said the practice of corporate donors winning public contracts was a cross-party issue, affecting both Labour and Conservative governments.
It found that since 2001, 25 companies donating to Labour have been awarded contracts worth £796m, while Conservative-linked firms have collectively received contracts valued at £25.4bn — much of it during the pandemic, including deals with Randox Laboratories and Globus Shetland.
Across both parties, the study identified 125 companies that had donated £30.15m to political parties and were subsequently awarded £28.8bn in central government contracts, with £2.5bn of those awarded within two years of the donation.
Dr Susan Hawley, Executive Director at Spotlight on Corruption, said the findings exposed “systemic weaknesses” in how the UK handles conflicts of interest.
“There is nothing more damaging to public trust than the perception that those with privileged access to power get privileged access to taxpayer-funded contracts,” she said.
“These findings show a systemic problem. We need systemic solutions — including screening out political donors from the procurement process and considering a ban on directors of such companies making political donations.”
Dr Will Stronge, Chief Executive of the Autonomy Institute, said: “When the same corporations that bankroll political parties also win government contracts, the line between public service and private influence becomes dangerously blurred. The only way to alleviate concerns is a ban on political donors receiving government contracts.”
Among the companies named in the report were:
• Baringa Partners, which donated £30,061 to Labour in January 2024 and has since received £35.2m in government contracts.
• Grant Thornton, which donated £81,658 between March 2023 and July 2024 and subsequently won £6.5m worth of contracts.
The report also identified four of the government’s 39 “strategic suppliers” — firms on which the public sector is significantly dependent — that have donated to political parties and later received major contracts: Fujitsu, KPMG, Microsoft and PwC.
Both Microsoft and PwC were found to have made donations under both Labour and Conservative governments.
A government spokesperson said: “All government contracts are awarded fairly and transparently, in line with the Public Contracts Regulations 2015. All decisions are rigorously scrutinised to ensure best value for the taxpayer.”
A Conservative Party spokesperson said all donations were fully compliant with Electoral Commission rules and dismissed suggestions of impropriety.
“As the National Audit Office and Cabinet Office have made clear, ministers properly declared their interests and had no involvement in procurement decisions. Donations have never influenced the awarding of government contracts.”
Before the 2024 election, Labour had been among the most vocal critics of such practices, condemning contracts awarded to Conservative-linked companies during the pandemic without open tender.
Then-Shadow Chancellor Rachel Reeves said at the time: “The British public are understandably angry that so much public money ended up with the friends and donors of the Tory party.”
PwC said it only provided “non-cash support” in the form of limited technical assistance to major political parties under strict governance arrangements and denied having any political affiliation.
KPMG declined to comment.
Other companies identified by the report were contacted but did not respond.
The study included the projected future value of multi-year contracts, meaning not all of the £28.8bn cited has yet been spent. It also focused solely on corporate donors, not individuals contributing in a personal capacity.
The findings are likely to intensify scrutiny of Labour’s corporate fundraising activities and put pressure on the government to tighten procurement rules and enhance public transparency around political donations.
