Westminster's Lobbying Culture Under Fire Amid Palantir Contract Scandal
In February 2025, Keir Starmer met Alex Karp, CEO of Palantir, at the firm's Washington DC offices. Shortly after, the Ministry of Defence awarded Palantir a £241m military contract without an open tender, sparking renewed concerns about corporate influence in UK politics. This incident highlights Westminster's enduring relationship with lobbyists, a culture of access and gifts that successive governments have failed to clean up despite repeated promises.
Fallout from the Mandelson-Epstein Revelations
The fallout from Peter Mandelson's ties to convicted paedophile Jeffrey Epstein has already led to high-profile resignations, including Keir Starmer's chief of staff, Morgan McSweeney. While attention focuses on Starmer's premiership, the episode exposes deeper issues: the seamless overlap between political and corporate networks. Wes Streeting's release of WhatsApp messages with Mandelson intended to draw a line but instead illustrated how lobbyists like Arden Strategies offer corporate clients access to senior officials for fees up to £30,000.
Henry Dyer, the Guardian's investigations correspondent, explains that Westminster has long been aware of private interests accessing MPs and Lords, yet little has changed. Lobbying operates through direct meetings, outsourced consultants, and gifts like tickets and travel, often declared but rarely prevented. For instance, before the Qatar World Cup, MPs joined All-Party Parliamentary Groups likely anticipating such perks.
Labour's Piecemeal Reforms and Ongoing Scandals
Since taking power, Labour has made tweaks, such as moving the lobbyist register from quarterly to monthly declarations and creating the Ethics and Integrity Commission. However, critics argue these measures lack teeth, with the commission having no new powers and the government ignoring recommendations. The Representation of the People Bill proposes a £2,230 limit on foreign gifts, a threshold Dyer calls too high, reflecting a culture where accepting substantial gifts remains acceptable.
Historical context shows lobbying scandals date back to World War I, with David Cameron warning in 2010 about "secret corporate lobbying." Ironically, Cameron later faced scrutiny for lobbying during the pandemic for Greensill Capital. The PPE procurement scandal saw £4.1bn go to politically connected suppliers, with figures like Michelle Mone and Owen Paterson breaching rules. Labour, vocal in opposition, has struggled to implement robust changes in government.
Why Reform Stalls and the AI Connection
Politicians find lobbying useful for briefings, as seen when over a dozen private-sector lobbyists were embedded in Labour's shadow cabinet teams before the 2024 election. Dyer notes that repeated failures to clean up politics are more damaging than individual scandals, eroding public trust. A key area of concern is AI, where companies like Palantir have secured over £500m in contracts with the NHS and MoD since 2023. Palantir's ties to Mandelson's firm, Global Counsel, and events like a party celebrating its MoD contract, exemplify the gifts and hospitality culture Cameron warned about.
As Darren Jones, chief secretary to the prime minister, reviews standards in public life, warm words on reform lack concrete action. With Westminster's culture unchanged, the question remains: will Starmer's government finally address lobbying, or will it continue as the next big scandal?
