Lobbyists from Peter Mandelson's firm attend US embassy reception
Senior executives from a lobbying company co-founded by Lord Mandelson's were invited to Washington to attend an embassy reception with Rachel Reeves.
Two executives from Global Counsel, who are based in Britain, were on the guest list for one of Mandelson's first outings as the British ambassador to US.
The decision has raised eyebrows because Mandelson co-founded the firm and worked for it until May last year. He is understood to own a significant stake in the business, which had a turnover of £16 million in 2023. He has agreed to put his shareholding into a blind trust until it can be sold.
Embassy sources insisted that the decision to invite Benjamin Wegg-Prosser, Global Counsel's chief executive, and Benedict Brogan, a managing director, had not been made by Mandelson.
They added that invitations to such receptions were not uncommon and that representatives from Global Counsel, which has an office in Washington, had been invited to embassy events on previous occasions. Global Counsel declined to comment.
However, rival lobbying firms said it was 'surprising' that Wegg-Prosser and Brogan had been invited to the event — and had taken time to fly out to Washington for it. 'It is the perception that matters,' one said. 'Everyone knows that Mandelson founded Global Counsel and it was a bit odd to see two of his former executives being wined and dined at his new embassy.' Another added: 'I guess my invitation got lost in the post.'
Steve Goodrich, head of research and investigations at Transparency International UK, said: 'When lobbyists secure access to exclusive government events while their firms' co-founder holds one of Britain's most sensitive diplomatic posts, it raises suspicions of preferential treatment that undermines public confidence in the integrity of our institutions.
'We urge the Foreign Office to review how it is managing potential conflicts of interest, including how it ensures the UK's ambassador to the US does not present an inappropriate channel for influence.'
Mandelson took up his role as ambassador in February having spent the previous decade building up Global Counsel into a major international player.
The firm's clients have included companies such as Anglo American, JPMorgan, Shell and OpenAI.
It also represented several companies linked to China, including TikTok, which is facing a ban in the US unless ByteDance divests itself of its ownership of the company in America.
In the first three months of the Labour government, Global Counsel recorded having lobbied ministers or senior officials on behalf of 22 clients.
Mandelson co-founded Global Counsel in 2010 and later served as president of the Great Britain-China Centre, an arm of the foreign office. The firm was valued at £30 million last year when the Messina Group, the political consultancy founded by Jim Messina, a former Obama campaign manager, bought a 20 per cent stake.
This allowed the company to expand its operations in Washington where it now employs eighteen people. It also has offices in Brussels, Doha and Singapore.
A spokesman for the US embassy said: 'Each year, in support of the UK government's growth agenda, the British embassy in Washington hosts a number of engagements in the margins of World Bank and IMF Annuals to bring together the best and brightest of the business and economic community. It is standard practice for international companies to have representatives attend.'
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Rhyl Journal
13 minutes ago
- Rhyl Journal
Tax hike fears mount after government borrowing jumps in May
The Office for National Statistics (ONS) said borrowing surged to £17.7 billion last month, the second highest figure on record for May, surpassed only at the height of Covid. May borrowing was £700 million higher than a year earlier, though it was slightly less than the £18 billion most economists had been expecting. The higher borrowing came in spite of a surge in the tax take from national insurance after Chancellor Rachel Reeves increased employer contributions in April. The decision, which was announced in last autumn's budget, has seen wage costs soar for firms across the UK as they also faced a minimum wage rise in the same month. Experts warned the higher borrowing figures raised the chances of tax hikes to come in the budget later this year, with Ms Reeves under pressure to balance the books amid rising borrowing and her spending commitments. Thomas Pugh, economist at audit and consulting firm RSM UK, said he is pencilling in tax increases of between £10 billion and £20 billion. He said: 'The under-performance of the economy and higher borrowing costs mean the Chancellor may already have lost the £9.9 billion of fiscal headroom that she clawed back in March. 'Throw in the tough outlook for many Government departments announced in the spending review and U-turns on welfare spending and the Chancellor will probably have to announce some top-up tax increases after the summer.' Danni Hewson, AJ Bell head of financial analysis, said the borrowing figures 'will only add to speculation that the Chancellor will have to announce more spending cuts or further tax increases at the next budget if she wants to meet her fiscal rules and pay for her spending plans'. 'One big shock could wipe out any headroom Rachel Reeves might have, and there are still question marks about how much of GDP (gross domestic product) should be spent on defence and where the money is going to come from,' she added. Borrowing for the first two months of the financial year to date was £37.7 billion, £1.6 billion more than the same two-month period in 2024, according to the ONS. The data showed so-called compulsory social contributions, largely made up of national insurance contributions (NICs), jumped by £3.9 billion or 14.7% to a record £30.2 billion in April and May combined. Rob Doody, deputy director for public sector finances, said: 'While receipts were up, thanks partly to higher income tax revenue and national insurance contributions, spending was up more, affected by increased running costs and inflation-linked uplifts to many benefits.' While May's borrowing out-turn was lower than economists were expecting, it was more than the £17.1 billion pencilled in by the UK's independent fiscal watchdog, the Office for Budget Responsibility (OBR), in March. The figures showed that central government tax receipts in May increased by £3.5 billion to £61.7 billion, while higher NICs saw social contributions rise by £1.8 billion to £15.1 billion last month alone. Public sector net debt, excluding public sector banks, stood at £2.87 trillion at the end of May and was estimated at 96.4% of GDP, which was 0.5 percentage points higher than a year earlier and remains at levels last seen in the early 1960s. The ONS said the sale of the final tranche of taxpayer shares in NatWest, formerly Royal Bank of Scotland, cut net debt by £800 million last month, but did not have an impact on borrowing in the month. Interest payments on debt, which are linked to inflation, fell £700 million to £7.6 million due to previous falls in the Retail Prices Index (RPI). But recent rises in RPI are expected to see debt interest payments race higher in June. Chief Secretary to the Treasury Darren Jones insisted the Government had 'stabilised the economy and the public finances'. 'Since taking office, we have taken the right decisions to protect working people, begin repairing the NHS, and fix the foundations to rebuild Britain,' he said.
Reuters
16 minutes ago
- Reuters
Insurer Aflac discloses cybersecurity incident
June 20 (Reuters) - Insurer Aflac (AFL.N), opens new tab said on Friday it identified suspicious activity on its network in the United States on June 12. The company said it has reached out to third-party cybersecurity experts to investigate the incident and has commenced a review of potentially impacted files. These files contain personal information of its customers, including social security numbers and health-related details, it added. Shares of Aflac fell 1.6% in premarket trading.
Reuters
16 minutes ago
- Reuters
Darden Restaurants lifts sales forecast, beats quarterly estimates on casual dining demand
June 20 (Reuters) - Darden Restaurants (DRI.N), opens new tab forecast annual same-store sales above estimates after strong quarterly results on Friday, banking on demand driven by food delivery and advertising efforts at its casual dining chains such as Olive Garden. Shares of the company rose about 3% in premarket trading after the company also announced a new $1 billion share repurchase program. Casual dining and fast casual restaurant chains, including Olive Garden and Shake Shack (SHAK.N), opens new tab, have benefited from menu innovations and promotions to entice customers, offsetting the impact of consumers turning to home-cooked meals to save money. Meanwhile, fast food chains including burger giant McDonald's (MCD.N), opens new tab, Starbucks (SBUX.O), opens new tab and Domino's Pizza (DPZ.O), opens new tab have been struggling with tepid demand. Darden expects annual same-store sales to grow in the range of 2% to 3.5%, midpoint of which is above analysts' estimates of 2.64%, as per data compiled by LSEG. Initiatives such as home deliveries with the help of Uber Direct and "buy one, take one" offerings at Olive Garden have further helped the restaurant chain operator. Its consolidated same-store sales were up 4.6% in the quarter compared to a year ago, with Olive Garden sales rising 6.9%. The company posted fourth-quarter sales of $3.27 billion, edging past estimates of $3.26 billion. It logged adjusted profit of $2.98 per share for the quarter ended May 25, above estimates of $2.97 per share, owing to moderate price hikes and lower input costs. However, the company forecast annual earnings per share between $10.50 and $10.70, compared with estimates of $10.75 per share.
