City donations worth £15m raise concerns over influence on UK politics
Concerns have been raised over the City’s influence on Westminster, after a report found financial firms and individuals tied to the sector donated £15m to political parties and gave £2m to MPs during the pandemic.
The campaign group Positive Money tallied the gifts, expenses and donations handed to MPs, peers and their parties, as well as the value of income from politicians’ second jobs, saying it contributed to finance’s “oversized influence” on policymaking.
It found banks, insurers and lobby groups held a “disproportionate” amount of meetings with the Treasury, accounting for a third of minister meetings in 2020 and 2021, and argued that led to favourable policies such as deregulation, and an economy that was “structurally reliant” on the City of London.
The Conservative party was the largest recipient of City donations to political parties, accounting for more than £11m or 76% of donated cash over the two-year period.
“Once the scale of big finance’s influence over government is laid bare, it becomes obvious how banks get bailouts and tax cuts while the rest of us get austerity and tax rises,” said David Barmes, a senior economist at Positive Money.
The report, titled The Power of Big Finance: How to Reclaim Our Democracy From the Banking Lobby, found 47 MPs received £2.3m between them – an average of £48,936 each – from the financial sector between January 2020 and December 2021. While 26 did no work in return for the payments, those who did were paid an average of £2,738 an hour, 180 times the average UK wage of £15.15.
About £1.2m of that total was collected by just five Conservative politicians, including former prime minister Theresa May, who was paid more than £200,000 for speeches at events run by JP Morgan and
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