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Thirty-eight MPs have taken on second jobs where the ultimate party paying them is unclear, according to Sky News’ analysis of the MPs’ Register of Financial Interests.

The jobs mainly involve MPs being paid through a broker – a consultancy business, a communications firm, or a speakers’ bureau – while not declaring the clients they are working for.

It casts doubt on the systems which are supposed to ensure transparency around MPs’ earnings.

The analysis was conducted as part of the Westminster Accounts – a Sky News and Tortoise Media project that aims to shine a light on money in UK politics.

But this light has made the remaining shadows all the more stark.

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Ex-cabinet minister Sir John Whittingdale provides one of the clearest examples of these cases, but two current ministers – Andrew Mitchell and Johnny Mercer – also appear to fall into this category. Some MPs told Sky News they had signed contracts restricting them from being transparent about the clients they’d worked with.

It begs the question of who is really influencing UK politicians, with Transparency International saying the findings could suggest there’s a “culture of opacity” among some MPs.

MPs are supposed to give details about their non-parliamentary earnings in the Register of Members’ Financial Interests.

On the face of it, that is what Sir John has done.

He’s a former culture secretary and a long-serving MP with a wealth of political experience. He’s been offering his insight, as MPs are entitled to do, via a company called AlphaSights, which connects experts like him with its clients.

But it remains unknown who the clients Sir John spoke to are.

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Sam Coates explains how and why the Westminster Accounts tool was made

He’s reported in his public filings that he’s received more than £10,500 from AlphaSights to tap into his expertise across 17 different engagements.

He was quizzed earlier this year on two of these dealings by the Advisory Committee on Business Appointments (ACOBA), the watchdog overseeing ex-ministers’ jobs, after he failed to seek approval for this work from the committee.

He was deemed not to have broken any rules, however, as he told the chair of ACOBA that he had no long-term relationship with AlphaSights and they were separate “one-off” speeches he delivered. Prior approval is not necessary for one-off speeches.

However, this seems hard to reconcile with the fact that Sir John has had 15 other engagements with AlphaSights since 2017, as the Westminster Accounts help reveal. And an ex-AlphaSights employee has told Sky News that rather than “speeches”, the work typically involves attending a meeting or having a call with two or three people from the client company.

These clients, who pay a fee for the privilege, are usually investment firms and consultancies looking for insight from experts to help make business decisions.

Sir John did not respond to questions from Sky News regarding who these clients were.

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It is a clear example where the companies paying to contract an MP’s services, and the company reported publicly in the Register of Interests – AlphaSights in this case – differ.

Sir John’s case is just one of many where these questions apply.

Defence minister Mr Mercer, for example, declared payments of £3,600 and £1,110 in 2021 for two speaking engagements from Chartwell Speakers, a speaker agency.

No details are given in the register as to who the clients acting through the agency were, as MPs are usually expected to report in these instances.

Beyond speeches and individual engagements, there is a wider group of 11 MPs who are on the books of communications or political consultancies who often don’t give details about the clients they work with.

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MPs’ second jobs – what are the rules?

International development minister Mr Mitchell, for example, had been working as an advisor to Montrose Associates until last October, when he returned to government as a minister.

Montrose Associates is a strategic consultancy which, according to its website, draws on “access to privileged networks of decision-makers” when advising its clients.

Mr Mitchell received more than £340,000 for around 75 days of work since taking up the role in 2013. Exactly which clients he worked with and what he did cannot be known from the cursory description of his work given in the Register of Interests.

This lack of transparency creates particular problems for holding ex-ministers to account. They often undertake new roles on the condition they refrain from lobbying government on behalf of clients of their employers.

Tracey Crouch, another former minister, received approval from ACOBA to become a senior advisor to communications firm The Playbook between February 2018 and March 2020. Her role was to advise some of The Playbook’s clients in the technology and energy sector.

But who these clients were has not been reported in the public record. This was despite ACOBA advising Ms Crouch she couldn’t lobby on behalf of The Playbook’s clients for two years after leaving government.

There is no suggestion Ms Crouch – or any other MP – has broken lobbying rules. But Steve Goodrich, head of research and investigations at Transparency International UK, has cast doubt on the systems designed to ensure politicians aren’t being unduly influenced.

“ACOBA is a paper tiger – it has no teeth, no ability to enforce the advice that it gives,” he said.

“And there’s a broader question about whether these omissions reflect a wider culture of opacity within parliament, at least among some members, that needs challenging. That’s more of a cultural issue, which may be harder to shift.”

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How you can explore the Westminster Accounts

There is also another group of MPs who have financial interests that may not be apparent from public disclosures.

Ten MPs have had employment with investment or private equity funds where there is a reasonable expectation they will be advising or making investment decisions about firms within the portfolios of these parent companies.

Yet the current rules – or the enforcement around them – put little onus on MPs to report these details.

David Davis, for example, the former Brexit secretary, sits on the advisory board of THI Holdings GmbH, an investment firm that declares holdings in seven companies on its website.

One of these companies is Oxford International Education Group – where Conservative MP Chris Skidmore sits on the advisory board. Were Mr Skidmore to speak in parliament on higher education issues, he would be expected to draw attention to his financial interest in this area.

But from what Mr Davis has disclosed, it is far more difficult to understand how ACOBA’s advice – which stated that Mr Davis should not lobby on behalf of THI’s subsidiaries in the two years after leaving government in 2019 – could be easily enforced.

Mr Davis is far from alone in working for one of these firms. Andrew Mitchell, Johnathan Djanogly, Richard Fuller, Bim Afolami, Alun Cairns and Stephen McPartland have all had positions with boutique investment firms in the past three years. There is no suggestion these MPs have broken any rules.

A spokesperson for Mr Mitchell told Sky News that all his outside business interests have always been properly registered in the normal way. Mr Mercer, Ms Crouch, and Mr Davis did not respond when asked for comment.

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‘We all welcome transparency’

MPs more likely to ask questions in parliament after taking up jobs in finance

Recent research from Dr Simon Weschle, author of Money In Politics, shows that MPs in certain types of second jobs behave differently.

He found that MPs were more likely to ask questions in parliament after taking up jobs in finance or the legal profession.

Dr Weschle said the lack of detail disclosed around these jobs makes it difficult to know if this amounts to lobbying, which would break the rules.

He said: “They could be asking more questions for a number of other reasons or for a reason directly relating to their work… but because we don’t know who they’re advising, who they have holdings in – who they’re ultimately working for – it’s really hard to make that connection.”

One reason MPs may not disclose further details is if doing so may conflict with professional practices.

Ten current MPs, for example, have worked as lawyers and accountants this parliament without naming their clients. Some may feel it inappropriate to disclose the firms or individuals contracting their services.

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Labour leader Sir Keir Starmer, for instance, is one MP who has reported payments for giving legal advice with little detail offered as to the source of these funds. Sir Geoffrey Cox, who has earned more than £2m in legal fees this parliament, is another who provides details of the chambers who pay him, but rarely his clients.

Sky News understands there are no professional standards rules in the legal or accountancy profession that would stop MPs disclosing their clients, unless they expressly requested anonymity.

Some MPs involved in business consulting have told Sky News they have signed contracts that prevent them from naming clients publicly.

Yet if these obligations are sometimes the reason for a lack of disclosure, it calls into question the rules which at times seem to put MPs’ private interests above the transparency of the system. In some places, like the US, this problem has been solved by banning politicians from having second jobs.

Dr Weschle thinks there’s room for reform in the UK: “It seems to be that second jobs clearly undermine the public’s trust in politicians… so we should think about whether certain kinds of jobs should be more restricted, or whether MPs should be made to be more transparent about what they’re doing.”

Additional reporting: Ganesh Rao

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Reynolds to hold talks with bosses amid business budget backlash

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Reynolds to hold talks with bosses amid business budget backlash

The business secretary will next week hold talks with dozens of private sector bosses as the government contends with a significant corporate backlash to Labour’s first fiscal event in nearly 15 years.

Sky News has learnt that executives have been invited to join a conference call on Monday with Jonathan Reynolds, in what will represent his first meaningful engagement with employers since Wednesday’s budget statement.

Rachel Reeves, the chancellor, unsettled financial markets with plans for billions of pounds in extra borrowing, and unnerved business leaders by saying she would raise an additional £25bn annually by hiking their national insurance contributions.

An increase in employer NICs had been trailed by officials in advance of the budget, but the lowering of the threshold to just £5,000 has triggered forecasts of a wave of redundancies and even insolvencies across labour-intensive industries.

Sectors such as retail and hospitality, which employ substantial numbers of part-time workers, have been particularly vocal in their condemnation of the move.

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On Friday, the Financial Times published comments made by the chief executive of Barclays in which he defended Ms Reeves.

“I think they’ve done an admirable job of balancing spending, borrowing and taxation in order to drive the fundamental objective of growth,” CS Venkatakrishnan said.

More on Budget 2024

His was a rare voice among prominent business figures in backing the chancellor, however, with many questioning whether the government had a meaningful plan to grow the economy.

Mr Reynolds held a similar call with business leaders within days of general election victory, and over 100 bosses are understood to have been invited to Monday’s discussion.

A spokesman for the Department for Business and Trade declined to comment ahead of Monday’s call.

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Markets react on second open after budget – as traders concerned over some announcements

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Markets react on second open after budget - as traders concerned over some announcements

The cost of government borrowing has jumped, while UK stocks and the pound are up, as markets digest the news of billions in borrowing and tax rises announced in the budget.

While there was no panic, there had been concern about the scale of borrowing and changes to Chancellor Rachel Reeves’s fiscal rules.

At the market open on Friday, the interest rate on government borrowing stood at 4.476% on its 10-year bonds – the benchmark for state borrowing costs.

It’s down from the high of yesterday afternoon – 4.525% – but a solid upward tick.

The pound also rose to buy $1.29 or €1.1873 after yesterday experiencing the biggest two-day fall in trade-weighted sterling in 18 months.

On the stock market front, the benchmark index, the Financial Times Stock Exchange (FTSE) 100 list of most valuable companies was up 0.36%.

The larger and more UK-focused FTSE 250 also went up by 0.1%.

While there was a definite reaction to the budget, uniquely impacting UK borrowing costs, the response is far smaller than after the UK mini-budget.

Many forces are affecting markets with the upcoming US election on a knife edge and interest rate decisions in both the UK and the US coming on Thursday.

This breaking news story is being updated and more details will be published shortly.

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Budget: Hostile market response as chancellor suffers Halloween nightmare

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Budget: Hostile market response as chancellor suffers Halloween nightmare

First things first: don’t panic.

What you need to know is this. The budget has not gone down well in financial markets. Indeed, it’s gone down about as badly as any budget in recent years, save for Liz Truss’s mini-budget.

The pound is weaker. Government bond yields (essentially, the interest rate the exchequer pays on its debt) have gone up.

That’s precisely the opposite market reaction to the one chancellors like to see after they commend their fiscal statements to the house.

In hindsight, perhaps we shouldn’t be surprised.

After all, the new government just committed itself to considerably more borrowing than its predecessors – about £140bn more borrowing in the coming years. And that money has to be borrowed from someone – namely, financial markets.

But those financial markets are now reassessing how keen they are to lend to the UK.

More on Budget 2024

The upshot is that the pound has fallen quite sharply (the biggest two-day fall in trade-weighted sterling in 18 months) and gilt yields – the interest rate paid by the government – have risen quite sharply.

This was all beginning to crystallise shortly after the budget speech, with yields beginning to rise and the pound beginning to weaken, the moment investors and economists got their hands on the budget documentation.

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Chancellor challenged over gilt yield spike

But the falls in the pound and the rises in the bond yields accelerated today.

This is not, to be absolutely clear, the kind of response any chancellor wants to see after a budget – let alone their first budget in office.

Indeed, I can’t remember another budget which saw as hostile a market response as this one in many years – save for one.

That exception is, of course, the Liz Truss/Kwasi Kwarteng mini-budget of 2022. And here is where you’ll find the silver lining for Keir Starmer and Rachel Reeves.

The rises in gilt yields and falls in sterling in recent hours and days are still far shy of what took place in the run up and aftermath of the mini-budget. This does not yet feel like a crisis moment for UK markets.

But nor is it anything like good news for the government. In fact, it’s pretty awful. Because higher borrowing rates for UK debt mean it (well, us) will end up paying considerably more to service our debt in the coming years.

Rachel Reeves and Chief Secretary to the Treasury Darren Jones prepare to leave 11 Downing Street
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Rachel Reeves leaving 11 Downing Street before the budget. Pic: PA

And that debt is about to balloon dramatically because of the plans laid down by the chancellor this week.

And this is where things get particularly sticky for Ms Reeves.

In that budget documentation, the Office for Budget Responsibility said the chancellor could afford to see those gilt yields rise by about 1.3 percentage points, but then when they exceeded this level, the so-called “headroom” she had against her fiscal rules would evaporate.

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Hefty tax and spending plans a huge gamble – analysis

In other words, she’d break those rules – which, recall, are considerably less strict than the ones she inherited from Jeremy Hunt.

Which raises the question: where are those gilt yields right now? How close are they to the danger zone where the chancellor ends up breaking her rules?

Short answer: worryingly close. Because, right now, the yield on five-year government debt (which is the maturity the OBR focuses on most) is more than halfway towards that danger zone – only 56 basis points away from hitting the point where debt interest costs eat up any leeway the chancellor has to avoid breaking her rules.

Now, we are not in crisis territory yet. Nor can every move in currencies and bonds be attributed to this budget.

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Markets are volatile right now. There’s lots going on: a US election next week and a Bank of England decision on interest rates next week.

The chancellor could get lucky. Gilt yields could settle in the coming days. But, right now, the UK, with its high level of public and private debt, with its new government which has just pledged to borrow many billions more in the coming years, is being closely scrutinised by the “bond vigilantes”.

A Halloween nightmare for any chancellor.

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