Exclusive financial accounts reveal that the family-owned wallpaper business connected to former UK Chancellor George Osborne has distributed substantial payments to directors while continuing to operate at a significant loss.
Substantial Payments Amid Financial Strain
Official documentation shows that George Osborne, alongside his parents and a company finance officer, received payments totalling approximately £877,000 from Osborne & Little during the latest financial period. This substantial distribution occurred despite the company recording a loss of £473,000 for the financial year ending in 2025.
While this represents an improvement from the previous year's losses, which were approximately four times higher, the company continues to face challenging market conditions that threaten its future stability.
External Pressures and Internal Support
The wallpaper manufacturer has encountered particularly difficult trading conditions, with sales suffering under the impact of higher tariffs implemented during President Trump's administration. These external pressures have contributed to projected losses for the coming years, creating ongoing uncertainty for the family enterprise.
Financial support has emerged from multiple sources within the Osborne family network. George Osborne's father, Peter Osborne, has provided significant personal backing through a cash loan of £267,000 to the business. This loan carries an interest rate set at 3 per cent above the Bank of England's current base rate of 3.75 per cent.
Complex Financial Arrangements
The family's financial commitment extends beyond this recent injection of capital. Peter Osborne had previously extended a subordinated loan of £400,000 in late 2024 and had forgiven an earlier £170,000 loan to the company, demonstrating substantial personal risk exposure.
External banking support has also played a crucial role, with HSBC providing additional loan facilities worth millions of pounds to support the company's cash flow requirements. This banking relationship gained particular attention when reports surfaced that HSBC had considered appointing George Osborne as its chair.
Operational Changes and Financial Impact
The company's financial challenges have prompted significant operational adjustments. Osborne & Little has relocated its offices from Wandsworth to Merton and closed its retail premises on Chelsea's prestigious King's Road.
Financial metrics reveal concerning trends beyond the operating losses. The company's tax contribution experienced a dramatic decline, falling from £228,000 in 2024 to just £20,000 in the most recent financial year. This substantial reduction reflects the company's diminished profitability and altered financial position.
Revenue Challenges and Cost Management
Revenue performance has weakened across the company's key markets in the United Kingdom, Europe, and the United States. Despite these revenue challenges, management has implemented cost-control measures that have reduced operating expenses.
These savings have been achieved through workforce reductions and renegotiated lease agreements, though these measures have proven insufficient to return the business to profitability in the current trading environment.
George Osborne's Diverse Career Portfolio
While his family business faces financial headwinds, George Osborne has cultivated a varied and successful career beyond the wallpaper industry. The former Chancellor recently secured a prominent position as head of OpenAI for countries, working under tech entrepreneur Sam Altman after proactively contacting the US billionaire to request employment.
Osborne's professional portfolio includes his role as a partner at boutique investment bank Robey Warshaw and his position as chair of the British Museum, where he hosted the institution's inaugural ball. He maintains political connections through his co-hosting of the Political Currency podcast alongside former Labour minister Ed Balls.
The latest accounts present a complex picture of a longstanding family business navigating difficult market conditions while its most prominent family member pursues diverse opportunities beyond the company's traditional operations.
