Cronyism row erupts as UK government appoints lobbyist to senior role

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The Conservative party has accused the Labour government of “cronyism and sleaze” after it appointed a lobbyist who has previously donated to the party to a government advisory role. 

Iain Anderson, chair of lobbying firm Cicero, has been hired as a non-executive director at the Department for Business and Trade, it announced this week.

Cicero, which advises companies including Accenture and Barclays, says it provides clients with “unparalleled insights” into government, making sure their “concerns and positions are heard by key decision makers”. 

The appointment threatens to reignite the summer’s row about access, after Rachel Reeves appointed a businessman who had donated £20,000 to Labour to a senior civil servant role in the Treasury, and a key party donor Lord Alli was given a Downing Street pass.

Anderson was a Tory supporter for many years, having worked for Ken Clarke on his leadership bids, and having backed Liz Truss for the party’s leadership. 

He also served as a government “LGBT business champion” under former Tory prime minister Boris Johnson.  

But he fell out with the Conservatives and subsequently conducted a pre-election review for Labour that was published in January this year. It called for the party to “create a true partnership between business and government once again”. 

Andrew Griffith, shadow business secretary, said: “As if Labour had not learnt their lesson, Keir Starmer has again rewarded another donor to a top job — funded by the taxpayer. It’s just more cronyism, sleaze and scandal at the heart of Sir Keir Starmer’s government.”

The business department said that non-executives provided independent advice on the ministry’s work.  

It added: “Iain was appointed following a fair and open competition and his interests were declared as part of the standard appointments process and will be managed in line with the relevant guidance.” 

One ally of Anderson said that his chairmanship of Cicero was an “ambassadorial” role and that he did not do any direct lobbying. 

The ally pointed out that Anderson’s position under Johnson had not attracted any such complaints. 

In fact when Johnson’s administration appointed him in 2021 it hailed his “wealth of experience” advising businesses and cited him as one of the Financial Times’ OUTstanding Global 100 Executives.

On Friday, a government aide said Anderson had been “at the forefront of transparency campaigning in the sector” and had led the effort for stronger governance across government engagement. Whitehall non-executives did not have any decision-making powers, he added. 

But the appointment has left some other lobbyists perturbed given the potential access that it could give Anderson. “I know people who like and rate him but it’s clearly an absolutely ridiculous, shocking appointment,” said one rival. “The conflict of interests is so blindingly obvious, it just shows appalling political judgment I’m afraid.”

Another public affairs veteran said the appointment was “reckless”, adding: “How can you have an active lobbyist on that board?”

It comes as Lord Peter Mandelson, who co-founded an advisory firm called Global Counsel, told friends he will put his business interests “in cold storage” after getting the role of UK ambassador to Washington.