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A senior minister has said he is “confident” the prime minister’s top aide will stay in post despite calls for his resignation over a failure to declare hundreds of thousands of pounds in donations.

Pat McFadden, the work and pensions secretary, described Morgan McSweeney, Sir Keir Starmer’s chief of staff, as a “highly talented individual”, and suggested recent reports about him was the work of political opponents trying to discredit him.

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Mr McSweeney, who is seen as the mastermind behind Labour’s landslide election victory, is facing questions over the failure to declare more than £700,000 in donations to Labour Together, the thinktank that fuelled Sir Keir’s Labour leadership campaign in 2020.

The PM’s top aide led the think tank from 2017 to 2020. As a members’ association, Labour Together is required to report donations and loans to the Electoral Commission, the body that regulates election spending.

In 2021, the commission fined the think tank £14,250 for more than 20 breaches – prompting Mr McFadden to say: “All these issues had been looked into three or four years ago.”

Morgan McSweeney the prime minister's chief of staff. Pic: Shutterstock
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Morgan McSweeney the prime minister’s chief of staff. Pic: Shutterstock

However, the issue has been thrust into the spotlight after the Daily Mail reported that a lawyer for the Labour Party had advised Mr McSweeney to describe the undeclared £740,000 in donations as an “admin error”.

The Mail also reported records released by the independent Electoral Commission, which oversees elections and regulates political finance, show Mr McSweeney was told in November 2017 donations to Labour Together had to be declared but he still failed to do so.

Conservative frontbenchers have called for an investigation, but Labour minister Steve Reed told Sky News the Tories “are just raking over old stories to distract from the fact they’ve got many, many problems”.

Housing Secretary Steve Reed said the matter has been closed
Image:
Housing Secretary Steve Reed said the matter has been closed

Mr McFadden told Wilfred Frost on Sky News Breakfast: “I think Morgan is a highly talented individual.

“I’m not surprised the Tories are targeting someone like that. They’ll see him as a formidable opponent. After all, he’s someone who worked with me to help deliver the biggest Labour election victory for a long, long time. So I’m not surprised that his political opponents will use every weapon they can, to try and attack him.”

Asked whether he believed Mr McSweeney would stay in post, Mr McFadden said: “Yes, I do.

“I can see why the Tories want to make as much of this as they can, and they want you to be asking me and other Labour spokespeople about it. But the Electoral Commission… took action at the time and they issued a statement last night making clear that was the case.”

The Conservatives have called for an investigation into the donations received by Sir Keir’s leadership campaign, with party chair Kevin Hollinrake alleging the prime minister may have failed to declare “potentially thousands of pounds’ worth” of support from the thinktank.

Mr Hollinrake accused Mr McSweeney of “hiding a secret slush fund he used to install Keir Starmer as Labour leader” as he urged the Electoral Commission to call in the police.

Alex Burghart, the shadow chancellor of the Duchy of Lancaster, told Sky News he would be “pretty worried if I was Morgan McSweeney”.

Referring to the scandals over the resignations of Angela Rayner and Peter Mandelson – a close ally of Mr McSweeney – Mr Burghart said: “It seems that whenever the Labour Party announces they’ve got full confidence in someone, they have to resign a couple of days later.”

He accused the prime minister of not declaring to the parliamentary authorities the support he had received from the think tank for his leadership campaign.

“We have a register of interests… and there is no record of Keir Starmer ever having declared any support from Labour Together, despite the fact that everybody knows that it was set up in order to make him Labour leader,” he said.

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A spokeswoman for the Electoral Commission said the issue had been “thoroughly investigated” in 2021, and it had been “satisfied that the evidence proved beyond reasonable doubt that failures by the association occurred without reasonable excuse”.

She added: “Offences were determined and they were sanctioned accordingly.”

Sky News has approached Downing Street for a comment.

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Labour deputy leadership candidate accuses opponent’s team of ‘throwing mud’ and briefing against her

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Labour deputy leadership candidate accuses opponent's team of 'throwing mud' and briefing against her

Lucy Powell has accused Bridget Phillipson’s team of “throwing mud” and briefing against her in the Labour deputy leadership race in a special episode of Sky’s Electoral Dysfunction podcast.

With just days to go until the race is decided, Sky News’ political editor Beth Rigby spoke to the two leadership rivals about allegations of leaks, questions of party unity and their political vision.

Ms Powell told Electoral Dysfunction that through the course of the contest, she had “never leaked or briefed”.

But she said of negative stories about her in the media: “I think some of these things have also come from my opponent’s team as well. And I think they need calling out.

“We are two strong women standing in this contest. We’ve both got different things to bring to the job. I’m not going to get into the business of smearing and briefing against Bridget.

“Having us airing our dirty washing, throwing mud – both in this campaign or indeed after this if I get elected as deputy leader – that is not the game that I’m in.”

Ms Powell was responding to a “Labour source” who told the New Statesman last week: “Lucy was sacked from cabinet because she couldn’t be trusted not to brief or leak.”

Ms Powell said she had spoken directly to Ms Phillipson about allegations of briefings “a little bit”.

Bridget Phillipson (l) and Lucy Powell (r) spoke to Sky News' Beth Rigby in a special Electoral Dysfunction double-header. Pics: Reuters
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Bridget Phillipson (l) and Lucy Powell (r) spoke to Sky News’ Beth Rigby in a special Electoral Dysfunction double-header. Pics: Reuters

Phillipson denies leaks

But asked separately if her team had briefed against Ms Powell, Ms Phillipson told Rigby: “Not to my knowledge.”

And Ms Phillipson said she had not spoken “directly” to her opponent about the claims of negative briefings, despite Ms Powell saying the pair had talked about it.

“I don’t know if there’s been any discussion between the teams,” she added.

On the race itself, the education secretary said it would be “destabilising” if Ms Powell is elected, as she is no longer in the cabinet.

“I think there is a risk that comes of airing too much disagreement in public at a time when we need to focus on taking the fight to our opponents.

“I know Lucy would reject that, but I think that is for me a key choice that members are facing.”

She added: “It’s about the principle of having that rule outside of government that risks being the problem. I think I’ll be able to get more done in government.”

👉 Click here to listen to Electoral Dysfunction on your podcast app 👈

Insider vs outsider

But Ms Powell, who was recently sacked by Sir Keir Starmer as leader of the Commons, said she could “provide a stronger, more independent voice”.

“The party is withering on the vine at the same time, and people have got big jobs in government to do.

“Politics is moving really, really fast. Government is very, very slow. And I think having a full-time political deputy leader right now is the political injection we need.”

The result of the contest will be announced on Saturday 25 October.

The deputy leader has the potential to be a powerful and influential figure as the link between members and the parliamentary Labour Party, and will have a key role in election campaigns. They can’t be sacked by Sir Keir as they have their own mandate.

The contest was triggered by the resignation of Angela Rayner following a row over her tax affairs. She was also the deputy prime minister but this position was filled by David Lammy in a wider cabinet reshuffle.

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UK tax authority doubles crypto warning letters in crackdown on unpaid gains

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UK tax authority doubles crypto warning letters in crackdown on unpaid gains

UK tax authority doubles crypto warning letters in crackdown on unpaid gains

HMRC sent nearly 65,000 warning letters to crypto investors last year, more than double the previous year, as the UK steps up efforts to trace undeclared capital gains.

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‘Additional resources’ offered by govt to reverse ban on Maccabi Tel Aviv fans at Villa game

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'Additional resources' offered by govt to reverse ban on Maccabi Tel Aviv fans at Villa game

The government says it is exploring what “additional resources and support are required” to allow “all fans” to attend Maccabi Tel Aviv’s match against Aston Villa next month.

Supporters of the Israeli side have been told they are not allowed to attend November’s game in Birmingham after a decision by Birmingham’s Safety Advisory Group (SAG).

The group – made up of local stakeholders, including representatives from the council, police and event organisers – said the decision was due to a high risk of violence based on “current intelligence and previous incidents”.

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The decision has been criticised across the political spectrum, with Sir Keir Starmer describing it as a “wrong decision” while Tory opposition leader Kemi Badenoch called it a “national disgrace”.

In a statement on Friday night, a government spokesperson said: “No one should be stopped from watching a football game simply because of who they are.

“The government is working with policing and other partners to do everything in our power to ensure this game can safely go ahead, with all fans present.

“We are exploring what additional resources and support are required so all fans can attend.”

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Birmingham residents react to the Maccabi fan ban

Meanwhile, Home Secretary Shabana Mahmood said: “Antisemitism is a stain on our society that shames us all. Every football fan, whoever they are, should be able to watch their team in safety.

“This government is doing everything in our power to ensure all fans can safely attend the game.”

The prime minister’s spokesman previously said Sir Keir would “do everything in his power to give Jewish communities the security they deserve”.

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Badenoch: Fan ban a ‘national disgrace’

The Home Office offered to provide more police for the event, while Culture Secretary Lisa Nandy and Communities Secretary Steve Reed also intervened.

However, senior police insisted the ban was necessary and cited clashes and hate crime offences committed when the Israeli team travelled to Amsterdam to play Ajax last year.

The Aston Villa vs Maccabi Tel Aviv match – set to take place on Thursday 6 November – is a Europa League fixture.

UEFA, which runs the tournament, had urged UK authorities to ensure away fans could attend.

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