| Hey Cintila, A shadowy corporate consultancy raked in record UK profits after Keir Starmer hired its former boss, Varun Chandra. Despite now working for Starmer's government, Chandra is still entitled to a six-figure dividend. Read more below. Editors' Picks
A secretive corporate intelligence firm with close ties to the government saw its UK revenues surge by 30% in the first financial year after its managing partner left to become Keir Starmer’s most senior business adviser, openDemocracy can reveal. Varun Chandra left Hakluyt & Company, a Mayfair-based firm that provides strategic advice to some of the world’s largest corporations on navigating governments and geopolitical risk, to join Starmer’s government in July 2024. In January the following year, Hakluyt lost another senior staff member to the government: embattled former civil servant Olly Robbins quit as the firm’s lead on Europe, the Middle East and Africa to join the Foreign, Commonwealth and Development Office. Despite these top personnel losses, Hakluyt’s UK business grew by 30% in the year to July 2025, according to our analysis of its financial records. This is its second-highest rate of annual growth in the UK in the six years since it started publishing regional breakdowns of its turnover.
We don’t have a paywall. We aren't backed by a big media organisation, and we certainly aren't funded by billionaires with their own agendas. We rely on readers like you, people who believe in the power of great journalism to hold powerful institutions to account. If you value independent media that isn't afraid to take on the political establishment, please consider chipping in. |
|
|
|
|
The financial records also reveal that Chandra’s multimillion-pound stake in Hakluyt entitled him to a payout of around £112,000 last year, while he was serving at the heart of Downing Street. In 2024, it was reported that Chandra would get rid of his shareholdings in the company in order to join the government. openDemocracy understands that Chandra’s shareholding is now around half its original size, in line with an agreement that will see the firm gradually buy back his shares at their July 2024 value. While his stake is still being reduced, Chandra is eligible for annual payouts. Both Number 10 and Hakluyt both declined to comment on whether he accepted the money. Our findings led Green Party leader Zack Polanski to call for an investigation into Labour’s relationship with Hakluyt & Company. “This is yet another revelation raising serious questions about Labour’s cosy relationship with big business,” Polanski said. “Bringing a senior figure from an elite corporate intelligence firm into the heart of government is deeply concerning. “When companies built on privileged access to political and regulatory insight appear to benefit from close ties to those in office, it undermines public trust. “The public deserve proper answers. Labour’s relationship with Hakluyt, before and after the election, should be investigated. The revolving door between big business and Westminster is still spinning – and it’s a system a Green government would work to dismantle.” Growing links to government Hakluyt & Company is an elite corporate intelligence and strategic advisory firm founded by outgoing MI6 operatives in the mid-1990s, which serves some of the biggest companies in the world across most sectors, and works with major private equity firms and sovereign wealth funds. The firm has developed an unrivalled network of thousands of contacts, having hired from the top ranks of government, intelligence services, banking and industry over the past three decades. It uses this vast network to produce reports for its clients, often on highly sensitive issues involving political and regulatory matters. But rarely has the company had such a close connection to a sitting government as it enjoys under Starmer’s Labour. Hakluyt reportedly worked unpaid with the party when it was in opposition before the 2024 election, helping its leadership to connect with the corporate elite, particularly in finance and tech. A Harvard Business School case study written about Hakluyt, based on extensive internal access through 2023 – and whose author took up a paid role with the firm after its publication – noted Chandra’s close relationship to Labour’s leadership, and that colleagues widely expected him to pursue a career in government. After Labour’s win, Chandra, the company’s managing director, was appointed Starmer’s top business adviser, and his influence has only grown since. He was recently appointed US trade envoy and has been involved with US trade talks, despite having worked for several years in Hakluyt's US offices, where his clients likely included American big tech and finance firms. Last year, Oliver Robbins also left Hakluyt to rejoin the civil service after a six-year hiatus, taking up the most senior civil service position in the Foreign Office in January 2025. Months earlier, it had been reported that Robbins had also applied to become cabinet secretary, the most senior civil service role in government. Before joining Hakluyt in 2023, Robbins had worked at Goldman Sachs and, before that, was the government’s deputy national security adviser and Europe adviser. He maintained contact with senior government officials while at Hakluyt, meeting with the top civil servant at the Department of Business and Trade, Gareth Davies, on several occasions, as well as current cabinet secretary Antonia Romeo and officials from the Ministry of Housing, Communities and Local Government, according to government transparency releases. As Hakluyt’s connections to the government have grown, so has its business in the UK. Accounts published this month show the firm turned over almost £150m last financial year, of which more than £60m was attributed to its UK operation. This was up from just over £130m turnover in 2024, with around £46m of that from the UK. The company’s overall profits also increased, from £20m to £24m, though the firm does not publish a regionalised breakdown of its profits. The last financial year is the only year in the past six where Hakluyt’s growth in the UK and Europe has significantly outpaced that in the US, and the only year in which it has significantly grown as a share of overall revenue. Asked whether the firm has sought or received information from either Chandra or Robbins since they left the business, Hakluyt declined to comment. Downing Street sources pushed back against any suggestion that Chandra had shared information with the firm since leaving. openDemocracy reached out to Robbins for comment but had not heard back at the time of publishing. A Downing Street spokesperson said: “The Cabinet Office has a thorough process on declarations of interest for special advisers to ensure any conflicts of interest are properly managed and mitigated, including through recusals where appropriate. “While we do not usually comment on individuals, Varun Chandra resigned from his position at Hakluyt and has made all relevant declarations as part of this process." ‘Weak lobbying rules’ As Hakluyt is not a consultant lobbyist, it is not required to publish a list of clients, despite maintaining regular contact with top-ranking officials across government and previously meeting with ministers, including with its clients. The now-defunct ‘revolving door’ watchdog Acoba commented that this makes it impossible to assess potential conflicts of interest when people move between government and the company. Though it is not strictly a lobbying firm, like many firms operating in the wider consulting and advisory industry, some of Hakluyt’s work brings it into contact with the government in a way that resembles lobbying. Hakluyt was investigated by the lobbying watchdog last year over meetings hosted by Chandra with Conservative ministers dating back to 2022. The watchdog found its activities did not meet the statutory definition of consultant lobbying – a narrow definition with a number of exemptions, including for companies that carry out lobbying which is “incidental” to their primary business. Kamila Kingstone, programme lead at Spotlight on Corruption, is one of many campaigners who has called for far-reaching lobbying reform, including an overhaul of the current consultant lobbying definition. “Despite representing clients’ interests, the fact that Haklyut can meet senior officials without having to register as a consultant lobbyist shows yet again the weakness of the lobbying rules,” she told openDemocracy. “There are serious risks that Haklyut could be financially benefiting from the revolving door between itself and the government. And there are serious questions to answer about how Varun Chandra’s conflicts of interest are being managed and mitigated.” Kingstone also highlighted the government transparency rules, which mean special advisers, even those with significant influence like Chandra, do not have to declare their meetings with external companies. “This story highlights the most glaring loophole, that meetings with special advisers do not need to appear in transparency releases or the lobbying register so the public do not know who is meeting some of the most influential people in government,” she added. “With the Ethics and Integrity Commission conducting a review of lobbying rules, the government needs to get a grip on the dire state lobbying transparency in the UK before the next scandal breaks.” |
0 comentários:
Postar um comentário